Challenger LTD
Encyclopedia
Challenger LTD is a provider of contract oil
and gas
land drilling and workover
services.
and North Africa
(MENA) region, and is currently led by Chairman Hassan Tatanaki
.
The company was founded in 1991 and operated first in Africa
later expanding into the Middle East
.
and work over services. The company owns and operates 25 drilling rigs in Libya
providing drilling and work-over services for oil, gas, and water wells, with offices in Egypt, Saudi Arabia
and the United Arab Emirates
. Workover refers to any kind of oil well intervention
involving invasive techniques, such as wireline
, coiled tubing
or snubbing
. More specifically though, it will refer to the expensive process of pulling and replacing a Completion (oil well).
It has an extensive client base, including several national oil companies as well as international corporations such as Agip
/Eni
, Total
, Marathon Oil
, Veba
and Verenex Energy. Challenger works as a regular subcontractor to the state-owned National Oil Corporation
of Libya. Challenger is one of the oldest drilling companies in Africa, and particularly in Libya. Since inception, the company has grown every year producing impressive financial results. Challenger is a private company limited by shares registered in the General Registry of the Isle of Man
, G.B. It operates as a commercial entity through a network of branches in Liechtenstein
, the Middle East and Africa. Financial Consultants and audit
firms include KPMG
and PriceWaterhouseCoopers
.
-based investment bank, along with its partner, the U.S. private equity firm Global Emerging Markets (GEM), acquired a significant stake in Challenger. The acquisition cost roughly $50 million and was co-financed by VC Bank and GEM. This transaction demonstrated that the MENA region contains several attractive, yet obscured, investment opportunities represented in privately held companies such as Challenger.
The investment is beneficial to both parties, allowing Challenger to achieve its growth plan and helping VC Bank to achieve its objectives of supporting companies in the MENA region. Challenger Chairman Hassan Tatanaki said that "amongst alternative financing routes available, Challenger's management decided to partner with VC Bank and GEM to fuel and expedite its capacity expansion plans and its geographical coverage." Tatanaki added that "in the oil sector, with Libya in particular, oil production in the 1970s was more than 3 million bpd compared to today's levels of 1.6 million bpd. With proven oil reserves
of 41.5 Goilbbl of mainly sweet light crude oil
in January 2007, an aggressive plan has been introduced by the Libyan government to enhance production capabilities to 3 million bpd by 2010. Since the lifting of sanctions
, exploration concessions have been granted to international exploration companies, which hope to drill 50 exploration wells per year."
VC Bank CEO Abdullatif Mohammed Janahi added, “our investment in Challenger will help the company snatch the exceptional growth potential in Libya and enter international markets. Soaring oil prices have brought about a supply/demand imbalance of oil rigs worldwide, leading oil and gas companies to spend more on exploration and production. This has, in turn, increased demand for oil drilling contractors such as Challenger.”
Notes:
1. USGS 2002 (Bbbl = "billion barrels of oil").
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
and gas
Gas
Gas is one of the three classical states of matter . Near absolute zero, a substance exists as a solid. As heat is added to this substance it melts into a liquid at its melting point , boils into a gas at its boiling point, and if heated high enough would enter a plasma state in which the electrons...
land drilling and workover
Workover
The term workover is used to refer to any kind of oil well intervention involving invasive techniques, such as wireline, coiled tubing or snubbing. More specifically though, it will refer to the expensive process of pulling and replacing a completion....
services.
History
Challenger is based in the Middle EastMiddle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
and North Africa
North Africa
North Africa or Northern Africa is the northernmost region of the African continent, linked by the Sahara to Sub-Saharan Africa. Geopolitically, the United Nations definition of Northern Africa includes eight countries or territories; Algeria, Egypt, Libya, Morocco, South Sudan, Sudan, Tunisia, and...
(MENA) region, and is currently led by Chairman Hassan Tatanaki
Hassan Tatanaki
Hassan Tatanaki is a Libyan born philanthropist who has contributed substantial financial resources and time to the building of local Libyan communities civil society programs ranging from organic farming, water resource management, water and waste water treatment, the construction of educational...
.
The company was founded in 1991 and operated first in Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
later expanding into the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
.
Operations
Challenger Limited is a provider of contract oil and gas land well drillingWell drilling
Well drilling is the process of drilling a hole in the ground for the extraction of a natural resource such as ground water, natural gas, or petroleum...
and work over services. The company owns and operates 25 drilling rigs in Libya
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
providing drilling and work-over services for oil, gas, and water wells, with offices in Egypt, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
and the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
. Workover refers to any kind of oil well intervention
Well intervention
A well intervention, or 'well work', is any operation carried out on an oil or gas well during, or at the end of its productive life, that alters the state of the well and or well geometry, provides well diagnostics or manages the production of the well....
involving invasive techniques, such as wireline
Wireline
In the oil and gas industry, the term wireline usually refers to a cabling technology used by operators of oil and gas wells to lower equipment or measurement devices into the well for the purposes of well intervention and reservoir evaluation....
, coiled tubing
Coiled tubing
In the oil and gas industries, coiled tubing refers to metal piping, normally 1" to 3.25" in diameter, used for interventions in oil and gas wells and sometimes as production tubing in depleted gas wells, which comes spooled on a large reel. Coiled tubing is often used to carry out operations...
or snubbing
Snubbing
See snubber for a device used to suppress voltage transients in electrical systemsSnubbing is a type of heavy well intervention performed on oil and gas wells. It involves running the BHA on a pipe string using a hydraulic workover rig...
. More specifically though, it will refer to the expensive process of pulling and replacing a Completion (oil well).
It has an extensive client base, including several national oil companies as well as international corporations such as Agip
Agip
Agip is an Italian automotive gasoline and diesel retailer established in 1926. It is a subsidiary of the multinational petroleum company Eni.In 2003, Eni S.p.A...
/Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
, Total
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...
, Marathon Oil
Marathon Oil
Marathon Oil Corporation is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Angola and Canada. Principal development activities are in the United States, the United Kingdom, Norway,...
, Veba
VEBA
VEBA AG was a German energy company. VEBA was founded in 1929 as a holding company owned by the state of Prussia, and was privatized in 1965. VEBA became a part of E.ON in 2000....
and Verenex Energy. Challenger works as a regular subcontractor to the state-owned National Oil Corporation
National Oil Corporation
The National Oil Corporation is the national oil company of Libya. It dominates Libya's oil industry, along with a number of smaller subsidiaries, which combined account for around 70% the country's oil output...
of Libya. Challenger is one of the oldest drilling companies in Africa, and particularly in Libya. Since inception, the company has grown every year producing impressive financial results. Challenger is a private company limited by shares registered in the General Registry of the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
, G.B. It operates as a commercial entity through a network of branches in Liechtenstein
Liechtenstein
The Principality of Liechtenstein is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over , and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan...
, the Middle East and Africa. Financial Consultants and audit
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...
firms include KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
and PriceWaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
.
Products and Services
- Challenger - 14 OIME SL-7
- Challenger - 19 National 80-B Trailerized
- Challenger - 23 IRI- CABOT-900-Truck Mounted
- KenworthKenworthKenworth is an American manufacturer of medium and heavy-duty Class 8 trucks based in Kirkland, Washington, United States, a suburb of Seattle. It is a subsidiary of PACCAR, and is also a former manufacturer of transit buses and school buses.-History:...
Trucks - (953-50 Ton, C500-35 Ton and Foremost Delta-3) - Trucks & Trailers - (Mercedes, Nissan Patrol, Toyota Land CruiserToyota Land CruiserThe is a series of four-wheel drive vehicles produced by the Japanese car maker Toyota Motor Corporation. It is not related to the Studebaker Land Cruiser car produced in the US from 1934-1954....
, Toyota Pickup and MAN) - OshkoshOshkoshOshkosh may refer to:Places in the United States* Oshkosh, Wisconsin, a city and the largest place with the name* Oshkosh , Wisconsin* Oshkosh Township, Yellow Medicine County, Minnesota* Oshkosh, Nebraska...
Trucks - Loaders - (CaterpillarCaterpillar Inc.Caterpillar Inc. , also known as "CAT", designs, manufactures, markets and sells machinery and engines and sells financial products and insurance to customers via a worldwide dealer network. Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas...
& VolvoVolvoAB Volvo is a Swedish builder of commercial vehicles, including trucks, buses and construction equipment. Volvo also supplies marine and industrial drive systems, aerospace components and financial services...
) - Excavators - (Caterpillar -D7)
VC Bank Acquisition
In 2006, Venture Capital Bank (VC Bank), a BahrainBahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
-based investment bank, along with its partner, the U.S. private equity firm Global Emerging Markets (GEM), acquired a significant stake in Challenger. The acquisition cost roughly $50 million and was co-financed by VC Bank and GEM. This transaction demonstrated that the MENA region contains several attractive, yet obscured, investment opportunities represented in privately held companies such as Challenger.
The investment is beneficial to both parties, allowing Challenger to achieve its growth plan and helping VC Bank to achieve its objectives of supporting companies in the MENA region. Challenger Chairman Hassan Tatanaki said that "amongst alternative financing routes available, Challenger's management decided to partner with VC Bank and GEM to fuel and expedite its capacity expansion plans and its geographical coverage." Tatanaki added that "in the oil sector, with Libya in particular, oil production in the 1970s was more than 3 million bpd compared to today's levels of 1.6 million bpd. With proven oil reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
of 41.5 Goilbbl of mainly sweet light crude oil
Light crude oil
Light crude oil is liquid petroleum that has a low density and flows freely at room temperature. It has a low viscosity, low specific gravity and high API gravity due to the presence of a high proportion of light hydrocarbon fractions. It generally has a low wax content...
in January 2007, an aggressive plan has been introduced by the Libyan government to enhance production capabilities to 3 million bpd by 2010. Since the lifting of sanctions
International sanctions
International sanctions are actions taken by countries against others for political reasons, either unilaterally or multilaterally.There are several types of sanctions....
, exploration concessions have been granted to international exploration companies, which hope to drill 50 exploration wells per year."
VC Bank CEO Abdullatif Mohammed Janahi added, “our investment in Challenger will help the company snatch the exceptional growth potential in Libya and enter international markets. Soaring oil prices have brought about a supply/demand imbalance of oil rigs worldwide, leading oil and gas companies to spend more on exploration and production. This has, in turn, increased demand for oil drilling contractors such as Challenger.”
Challenger Limited: Selected Clients
| Client | Years of Operation | Area of Operation | Country | Services |
|---|---|---|---|---|
 AgocoArabian Gulf Oil Company The Arabian Gulf Oil Company is an oil company based in Benghazi, Libya, engaged in crude oil and natural gas exploration, production and refining. It was a subsidiary of the state-owned National Oil Corporation . -Overview:... |
1991-current | Sarir field Sarir field The Sarir Field was discovered in southern Cyrenaica during 1961 and is considered to be the largest oil field in Libya, with estimated oil reserves of... |
Libya |
Drilling, workover |
| Lasmo Lasmo Lasmo plc was a leading British oil and gas exploration and production business. It was listed on the London Stock Exchange and was a constituent of the FTSE 100 Index.-History:... |
1993-94 | Wadi Borjuj | Libya |
Drilling, workover |
| Waha Waha Oil Company Waha Oil Company is an oil company based in Tripoli, Libya, engaged in the fields of crude oil and natural gas exploration and production.-Overview:... |
1994 | El Zahra | Libya |
Drilling, workover |
 IPC-Dublin |
1997-97 | Kilwa |  Tanzania |
Drilling |
 OMVOMV OMV is Austria's largest oil-producing, refining and gas station operating company with important activities in other Central European countries... |
1997 | Field 103 | Libya |
Drilling, workover |
 FinaPetrofina Petrofina was a Belgian oil company which merged with Total in 1999 to form TotalFina, but the name has now been changed back to Total after another merger... |
1997 | El Hamada | Libya |
Drilling, workover |
 Marathon |
1998 | Manzala field |  Egypt |
Drilling |
 Khalda/Repsol |
1998-99 | West Desert | Egypt |
Drilling |
| Total |
1999-current | El Mabrouk | Libya |
Drilling |
 Agiba-Agip |
1999 | West Desert | Egypt |
Drilling |
 IPLLLundin Petroleum Lundin Petroleum is an independent international petroleum company formed in 2001 and based in Sweden.-History:The company was formed in 2001 following the takeover of Lundin Oil AB by Canadian independent Talisman Energy, Lundin Petroleum AB is a Swedish oil company traded on the Stockholm Stock... |
1999-current | El Naka field | Libya |
Drilling |
| SOC Sirte Oil Company Sirte Oil Company is an oil and gas company of Libya operating under the state-owned National Oil Corporation . The company is located in Brega SOC’s operations include oil and gas exploration and production and manufacturing.-Background:... |
2000-current | SOC fields | Libya |
Drilling |
 Veba |
2000 | Different fields | Libya |
Drilling, workover |
| Perenco Oil Co. Perenco Perenco is an independent Anglo-French oil and gas company with a headquarters in London. It has exploration and production activities in 16 countries across the globe .Perenco is involved in operations both... |
2000-01 | EchiraX Concession |  Gabon |
Drilling |
| Zueitina |
2001-current | Field 103 | Libya |
Drilling, workover |
Notes:
1. USGS 2002 (Bbbl = "billion barrels of oil").