Finish What You Start - Utilizing Domestic Service Companies for Existing Well Optimization

Additionally, she somehow manages to simultaneously serve as the Deputy Head of TEKSERT Systems in the Siberian region, and is also a member of the Board of Directors of NizhnevartovskNIPIneft. In fact, Ms. Andreeva spent 17 years at the NizhnevartovskNIPIneft R&D Institute, where she grew from the position of engineer to Deputy Director and ultimately became the Institute’s General Director., 
Natalia Andreeva sat down with Oil&Gas Eurasia to discuss the oil industry, the challenges facing service companies and unveiled some of her plans:
Oil&Gas Eurasia: Who are current players in the service market?
Natalia Andreeva: There are now three groups in the market. The major players are Western companies that came to our market with the help of loans that oil companies received. These include Schlumberger, Baker Hughes, MI Swako, Halliburton, etc. These companies are well equipped as far as technology is concerned; they have all the licenses, certificates, and documented procedures. This was something new for our domestic oil companies. For example, a   spreadsheet with a prescription on the timing for some technical operations, where it says “move the jack lever with your right hand for 30 seconds.” This is where Western service companies were different from us; they introduced the culture of production and quality standards to us. Another thing which surprised us about the western service companies was the fact that they strictly prohibited any rationalization or improvement. There is a documented procedure, with a certificate and that’s it – you cannot depart from the rules.
The service departments of vertically integrated companies make up the second group of players in the market. These service divisions of large companies are also developing, but sometimes they lack investment. Let us look at the market of designing services. There are design institutes within oil companies, such as TatNIPI, SurgutNIPI and many others. Oil companies believe that this is very good. It means savings and readily accessible specialists. But if you compare those with NizhnevartovskNIPI Institute that works on the free market – hunting for orders, always squeezing its time and its business environment – this team is in a “better shape” and earnings are higher there. In my opinion, it is more profitable for an oil company to employ an R&D Institute from the market than to keep one.
The third group of participants in the service market is Russia’s major medium and small companies in various stages of development.
OGE: What difficulties do the service companies face?
N.A.: The lack of legal and regulatory framework is one of the problems. Currently, there are no standards for well servicing; there is no basic standard – for field development, for example, no law on oil. This is very constraining.
Next, I believe that the oil companies have not yet faced the reality of their situation with regard to the way they must work with reserves. There is an idea in the minds of leaders, “Let’s find a field where we can successfully make a fracturing job and immediately get the