Network International, the leading marketplace for surplus energy equipment, completed the sale of over $7.8 million of surplus equipment for Chevron. All of the material, including pipe, wellhead and other miscellaneous equipment, was sold over the Internet through Network's online auctions.
Network International was called upon in late December 2005 to formulate a preliminary plan to handle a large volume of surplus material associated with the recent Chevron-Unocal merger. On January 4, 2006, representatives from Chevron Procurement and Network International met in Houston to discuss the project and Network's ability to meet Chevron's demanding time frame, which called for every asset to be marketed, sold, paid for and picked up within 90 days. Further complicating matters, the equipment was located in 18 different equipment yards across Texas and Louisiana.
The Chevron equipment was sold over a period of 45 days through three separate online auctions with 128 total bidders and 47 different buyers. Each lot had an average of 8 bidders and 59 bids from buyers representing nine different states and Singapore. "The coverage of this sale was impressive," stated Craig Haydel Chevron's GOM Procurement Operational Team Lead.
"Network International's well-coordinated team approach was impressive from day one. As the inventories were divided into lots, and subsequent sales progressed, it became evident that Network International was very much up to the task. Network International's communications with Chevron Procurement on a daily basis, giving attention to every detail, was not only instrumental in this operation, but it was also a relationship building success on both sides," says Haydel.
Network's sales process involves inventory verification, photographing and writing detailed descriptions of all equipment for sale and posting that information to the website in appropriately sized "Lots." The company then conducts an extensive Marketing campaign, which includes promotion to an internal database of over 7,000 registered buyers, print and Web advertising, and an inside sales team, who actively promotes the equipment for sale. Network manages the auction with a dedicated customer service team, and handles all post-sale paperwork, monetary exchanges and reporting. "As our relationship with Chevron continues to grow, we appreciate Chevron's confidence in choosing us to execute these sales. I'm proud of our team and appreciative of Chevron's collaboration," says Boyd Heath, Chairman and CEO of Network International.
About Network International, Inc.
Network International, Inc. is the expert at creating markets for idle, surplus and used energy equipment through online auctions and private sales. Network was founded in 1999 under the original name Network Oil, Inc. and is based in Houston, Texas. For more information, please visit the website at www.Networkintl.com.