GEOTHERMAL

Slb ordered to stop using its Resolve milling and cutting tools

Slb has to pay patent holder Welltec US$1.25million in damages and costs

Patrik Wheater
Welltec's patented RCB

Welltec's patented RCB | Credits: Welltec

A Norwegian court has ordered Slb to immediately stop using its Resolve Milling Active Cleanout and Resolve iX Tubing Cutter tools on projects in and offshore Norway, ordering the global engineering contractor to pay NOK12millon (US$1.25million) in damages and legal costs to patent holder Welltec A/S.

The Oslo District Court found on 6 March that Slb (formerly Schlumberger) had infringed two separate patents held by the Danish manufacturer relating to the design of its Well Miller Reverse Circulating Bit (RCB), and its tubular pipe-cutting technology Well Cutter.

Since market introduction, Well Miller RCB, which integrates a rotary bit with a vacuum suction system, has been used worldwide on more than 2100 projects. Well Cutter has about 2150 project references. Welltec says the technology is commonly used in offshore projects but can also be used in geothermal, geotechnical and other  industrial drilling projects.

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Welltec CCO Tommy Eikeland | Credits: Welltec

Welltec Chief Commercial Officer Tommy Eikeland (pictured) told GDI: "We engineer, design and produce all our technology in house. We have more than 1250 patents and patent applications and we do not allow companies to use or operate our technology under license. According to the Oslo District Court, Slb management has acted with negligence in relation to filing its own patent application covering the disputed technology." 

Satisfied with the court's decision, Eikeland said it sends a clear message that infringement of patent rights is unlawful and undermines the ability for technology companies to compete. 

"Had the ruling gone in Schlumberger's favour, this would have had a significant impact on our business in Norway. It's been a long week," he said.

While Slb is likely to appeal the Oslo decision, Welltec has initiated legal proceedings in Denmark and is considering IP claims in other countries. 

In April last year, The Norwegian Supreme Court upheld an earlier 2023 decision that Baker Hughes had infringed Welltec Intellectual Property rights, bringing a long-standing dispute to a close.

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Welltec's patented well cutter | Credits: Welltec

Eikeland said at the time that it is crucial that patent rights are respected in all markets. "Development and innovation cost enormous sums, and it is clear that when a patent exists, it is because development and innovation have been recognised." 

It is believed when companies breach IP and patent rights, their clients could also become liable for damages if they continue to use the patented technology without agreement.

Slb has been approached for a comment but has yet to respond.