Varco Gets $7-Million Order for Oil Gear, Largest in Its History

Varco International Inc., which manufactures drilling equipment for the oil industry, said Monday that it has received an order from a Singapore company valued in excess of $7 million--its largest single order ever.

The order from Far East-Levingston Shipbuilding Ltd. of Singapore includes a variety of drilling equipment to be installed on two offshore drilling rigs being constructed for A.P. Moller/Maersk Drilling in Copenhagen, Denmark.

The equipment will not be built until next year, with delivery set for late 1991, according to Richard Kertson, Varco’s vice president of finance.

“Essentially, major oil companies have been under-investing in exploration and production oil equipment for the last decade and, right now, investment is increasing because oil prices are stabilizing,” Kertson said. “And that has translated into increased business for oil and gas drilling-equipment manufacturers.”

The order includes two newly designed dual-motor drilling systems, two advanced automated pipe-handling machines and two optional pipe-handling systems.