Recently, a special meeting took place in Midland, Texas commemorating the launch of a new partnership between Samsung C&T and Parallel Petroleum. Today, let us take you to the exciting scene that marked the beginning of Samsung’s inroads into the U.S. onshore oil exploration business.
Samsung C&T, our trading affiliate, agreed in November last year to buy Midland-based Parallel after more than a year of negotiations. More than 400 guests including Parallel employees, businesspeople of related industries, as well as local and state politicians gathered at Petroleum Club on February 28 to welcome Samsung C&T to the city – at the heart of Permian Basin, one of the biggest oil-producing regions in the U.S.
Parallel is an oil and gas producer of some 50 employees, with much potentials and resources. In Permian Basin alone, the company owns eight oil and two gas fields, amounting to some 53.1 million barrels of reserves. In addition, the company is currently exploring oil fields with potential reserves of about 75.4 million barrels.
The ability to manage over 80 oil and gas fields scattered widely with such a small number of employees stems from their technical skills accumulated over many, many years, as well as their automated system. All of the data from each field can be accessed from the Midland headquarters, enabling efficient management.
It is also worth noting how Parallel maintains close relationships with its contractors. Parallel and its contractors have been working together for a long time as a team – each being fully committed to completing their task whether it be drilling or setting up pipes.
Another key to Parallel’s success is its skillful workers. Parallel’s employees are industry-leading experts, with some of them having worked in the field for more than 30 years. As Parallel’s President and CEO Larry Oldham stresses, one of the company’s guiding management principles is that “it’s all about people.” The company’s core competitiveness lies in the amicable and family-like atmosphere where trust and respect abound.
All of these reasons make Parallel a perfect partner for Samsung C&T to carry out its long-held dream of entering the U.S. onshore market. Since Samsung C&T began energy business in 1982, it had its ups and downs, and it was especially difficult during the 1997-1998 Asian financial crisis.
We still remained undeterred from pursuing resources business. That determination led to our participation in the Ankor offshore oil field project in the Gulf of Mexico in 2008. And with the latest acquisition of Parallel – the first venture for Samsung C&T to have a majority stake, as well as operation rights – we are now another step closer to achieving our goal.
“Now, we can take our technical expertise and Samsung’s financial strength and combine that,” Mr. Oldham said at the Feb. 28 ceremony. “I believe we can be a very key player in the Permian Basin.”
We are very confident that Parallel’s world-leading technology and expertise will not only help Samsung advance related skills, but also open up new opportunities for business, so that we can grow together as partners. Because as Mr. Shin Kim, President and CEO of Samsung C&T’s Trading & Investment Group, said: “We are celebrating the combination of two histories and cultures. We will take our first steps to writing a new history together.”