Russian Drilling Programs Poised to Best 2012 Highs

By Lada Ponomareva, March 5, 2013

oil recovery works / Работы по повышению нефтеотдачи

2 364

2 276

-3,7

Including down-the-hole treatment / В т.ч. химическая обработка скважин

1 320

1 289

-2,4

Incremental oil production (1,000 tons) / Дополнительная добыча нефти (тыс. т)

Hydraulic fracturing process / Процесс гидроразрыва пласта

6 200

Enhanced oil recovery works / Работы по повышению нефтеотдачи

5 507

5 936

7,8

Including down-the-hole treatment / В т.ч. химическая обработка скважин

2 599

2 656

2,2

 

 

Gas Independence Ukrainian Style
The delivery of the second high-tech drilling rig "Nezavisimost" (Independence) to Ukraine's offshore sector in the Black Sea last year was another notable event in regional energy news. In December 2012, the rig was towed from the Turkish port of Giresun to the Crimea in preparations for the start of operations. "Nezavisimost" officially began drilling operations on February 1 at the Arkhangelskoye field 60 kilometers off the coast of Crimea.

Four jack-up drilling rigs are now operating in Ukraine's sector of the Black Sea: "Tavrida," "Sivash" (both produced in the Soviet Union), the Singaporean "Peter Godovanets," and Keppel FELS' "Nezavisimost." Chernomorneftegas expects that drilling by the two newer wells will increase overall gas production to 600 million cubic meters this year, and to up to 1 billion cubic meters next year. Some analysts believe that Ukraine will be able to fully satisfy its demand for gas in next 10-15 years, which could well prove true. In 2012 alone, Chernomorneftegaz began exploratory drilling at three fields (Arkhangelskoye, Shtormovoye, and Odesskoye); three rigs successfully drilled 11 wells last year; and 4 additional wells are in the final stage of development.

Plans for the Future
In general, oilfield service companies believe that 2012 was a successful year for the oil and gas sector. Companies are improving their market positions by upgrading their equipment and extending their range of services, as demand for after-sale servicing is on the rise. But according to Andrey Suleimanov, Director for Marketing and Development at NPP Burservice, service companies are facing a different problem: customer demand "to see an integrated service package from one contractor at their facilities, but significant variation in contract requests across locations." This is forcing companies to search for and develop methods for a rapid solution to the each case. Time allocated for each operation is limited, but these circumstances, however, could lead to greater product innovation and development of new technologies.

Meanwhile, service companies are waiting for the expansion of drilling and well-work market serves. Mark Sadykhov, President of NewTech Services, believes that in the near future market participants will achieve strong production and financial results: "Though service prices have not reached the peak values of the pre-crisis level, we hope that the ongoing market growth will result in a price increase, particularly in the technology-intensive services sector, in which our company is working."

Ernst&Young's Opinion
Currently, in the context of persistent high oil prices and worsening geological factors of field development, the Russian market of oil services (the capacity of