Why did Weatherford International acquire CygNet Software?

In November 2010, CygNet Software and Weatherford International entered an exclusive OEM agreement for Weatherford to offer a fully hosted, software-as-a-service (SaaS) version of CygNet’s Enterprise Operations Platform (EOP) and its gas production applications. In the course of bringing this new product to market, Weatherford realized that acquiring CygNet and its significant installed customer base would give it an industry leading position in gas production SCADA in North America. Furthermore, CygNet significantly enhances Weatherford’s strategy to provide a fuller spectrum of gas producers with a comprehensive set of software tools for production control, monitoring, and analysis. With the addition of gas pipeline and local distribution sectors, Weatherford now enjoys market penetration in all segments of the gas market. The combined systems and solution offerings of CygNet and Weatherford – delivered to all forms of artificial lift – will maintain the combined companies’ leadership in production optimization.

Will CygNet Software continue to operate as a separate entity?

No. Specifically, CygNet has now joined the software product group inside Weatherford’s Production Systems global business unit. CygNet’s full suite of offerings now becomes a distinct product line in that group’s software portfolio. CygNet’s sales and service operations will continue to be based in Houston, merging with Weatherford’s presence there. Soon the combined account team will be able to offer the entire suite of Weatherford solution offerings to CygNet customers as well as new customers on a worldwide basis. For more information, visit Weatherford to learn about its software products.

What is the future of CygNet products?

CygNet’s development team also remains intact and will continue to be based at CygNet’s office in San Luis Obsipo, Calif. Updates to both the SaaS and native license versions of CygNet products are expected to continue on a regular release schedule, with continued input from CygNet customers. These two software delivery options will give customers of any size the broadest footprint of accessibility, from a single device to thousands of devices. As the needs of mutual customers are determined, future versions may leverage CygNet EOP as a platform to integrate Weatherford’s Field Office suite of production optimization software. CygNet management will continue to provide updates to clients regarding integration plans and milestones, as they become known.

What are the benefits of Weatherford for CygNet customers?

CygNet Software has now become part of a global oil and gas organization with world class resources and an industry-leading production optimization footprint. CygNet can now offer a larger, more extensive portfolio of software and services to its existing enterprise clients to improve both gas and soon liquid operations and optimization drives. Current users of Weatherford’s extensive gas production solution will be able to collect data from Weatherford’s plunger lift controllers, deliquification devices, rod pump controllers, and variable speed drives – then make that critical operational information natively available in CygNet. Customers will enjoy tight integration between CygNet EOP and Weatherford’s LOWIS™ analysis and work-flow software, among other offerings.

What are the benefits of CygNet for Weatherford customers?

Besides the benefit to current Weatherford customers already using CygNet, the company can now provide a more complete SCADA solution for production optimization to all shale producers around the world. For example, the acquisition of CygNet represents a significant addition to Weatherford’s deliquification capability, particularly in its artificial lift systems. With the hosted version of CygNet EOP, a broader range of gas producers regardless of size gain access to CygNet’s industry-leading SCADA solutions to optimize their operations.

What is the future of third-party hardware, software and integration partners that CygNet supports?

All leading hardware devices will continue to be natively supported in CygNet EOP, including of course all Weatherford products. Part of the value in joining Weatherford International is its capability to communicate with the entire oil and gas production ecosystem to feed optimization goals. Indeed, CygNet hopes to invest further in partner initiatives now that we are part of a global industry leader. Current partners should welcome the ability to leverage Weatherford world-class brand.

Additional inquiries can be directed to CygNet from the Contact page.