Energy Pipe & Equipment Rental accesses a dedicated supply relationship with Thai Oil Pipe
Energy Pipe & Equipment Rental (“EPER”) specializes in the distribution of specialty pipe used for upstream and downstream oilfield applications, more commonly known as “OCTG”. For many years, EPER has operated as a leading supplier of OCTG’s on the secondary market – EPER makes a market in surplus pipe from OEMs, other distributors and customers with excess pipe following completion of a project. As EPER has not previously had a dedicated OEM dealer relationship, the Company has historically been dependent on the ongoing activity in the oilfield to precipitate good value buying opportunities.
With the sharp decline in drilling activity during the 2020-2021 COVID downturn, EPER’s access to OCTG’s in the secondary market began to dry up. Although some minimal drilling activity continued through the downturn, the typical supply and demand equation was highly disrupted. Given these circumstances, EPER mandated PGA to access its industry relationships to identify new sourcing opportunities.
Working with its senior advisor in Asia, PGA helped EPER access a dedicated supply relationship with Thai Oil Pipe (“TOP”), a major OCTG OEM seeking to expand its customer base in North America. Through this relationship, EPER has been able to order directly from TOP based on customers’ needs months in advance of their projects and at favorable direct-to-mill terms. Through this new relationship, EPER is now situated to facilitate large OEM-based needs for its customers as well as continuing with its original, more nimble secondary market strategy.