DRILLING
OF THE DRILLING FLEET ARE RIGS YOUNGER THAN 10 YEARS
Rosneft drilling service is the most modern among all Russian drilling companies. Over 60 % of the Company’s drilling rigs are younger than 10 years, including directly owned rigs and rigs received under finance and operational lease. The drilling service retrofit program involved the purchasing, supply, and start-up of 13 drilling rigs from Uralmash NGO Holding LLC in 2015. A contract was signed in October 2015 to supply 15 additional new drilling rigs for cluster drilling of horizontal development oil and gas wells with a nominal drilling depth of five kilometers in 2016. The first drilling rig was assembled under the new contract in December 2015 at the check assembly site of Uralmash NGO Holding LLC in Tyumen.
New rigs will compensate for the decommissioning of equipment with expired service life, help to keep an in-house services share, and fulfill the production program of upstream subsidiaries.
The establishment of a united drilling holding was initiated in 2015 using the assets of RN-Burenie LLC in order to optimize the structure and implement a highly efficient management system. The assets of OBC LLC and JSC OBN were used to create the Orenburg Branch of RN-Burenie LLC, and regional subdivisions of RN-Burenie LLC. The Nizhnevartovsk Branch of RN-Burenie LLC will be opened with the assets of NPRS-1 LLC and JSC NvBN in 2016.
The implementation of the strategy aimed at the development of the drilling business continued throughout 2015 boosting the performance of the production segment despite the challenging environment. The number of active drilling rigs reached 223 units serviced by 208 drilling crews at the end of December. The in-house service involvement in the Company’s onshore drilling exceeded 50 %.
Own drilling service is instrumental with more stringent control over third-party contractor prices, curbing tariff growth and monitoring the performance in the Company’s units. As a result the Company managed to reduce costs of directionally drilled wells using RN-Burenie resources at our largest producing asset, Yuganskneftegaz, versus 2012 against the growth of 22 % of producer price index and 3 % of third-party contractor prices, on the average.
Precision Drilling de Venezuela, C.A. holding six drilling rigs and a headcount of 405 employees was fully integrated into the Company in 2015. All drilling capacities were relocated to JVs with the Company’s interest (JV Petromiranda, JV Petromonagaz, JV Bokeron, and JV Petroperiha). The Company’s operating performance represented by 77300 meters drilled and by reduction in 6% in 2015. 6 %. High drilling efficiency in 2016 is certified by average well drilling time reduction from 40 to 21 days at JV Petromonagaz and from 35 to 29 days at JV Petromiranda. Currently, the Company is providing additional equipment and upgrades its drilling capacities to support JV’s production program with the Company’s participation. 2016 operating plan is developed and approved.
WE SUCCESSFULLY OVERCAME DRILLING SERVICES DEFICIENCY AND INCREASED THE CAPACITY OF THE IN-HOUSE DRILLING (ROSNEFT PERFORMS
Igor Sechin From the report to Vladimir Putin, the President of the Russian Federation, March 28, 2016
56% OF DRILLING SERVICES) AND RESPECTIVELY INCREASED PRODUCTION DRILLING BY MORE THAN 30% LAST YEAR>>.
WELL SERVICING AND WORKOVER AND OTHER IN-HOUSE SERVICES
WORKOVERS WERE PERFORMED BY INTERNAL SERVICING DIVISION
OF FRACTURING PERFORMED IN-HOUSE
The strategic goal for well current repair and workover at Rosneft is higher safety and quality of oil services, lower operating costs, and long-term satisfaction of the Company’s demands using in-house services.
The average active number of in-house crews involved in well current repair and workover (RN-Service LLC group) was 531 crews in 2015. The production program covering the number of repair/workover operations is 104 % complete, almost 30,000 well repairs performed. Actual uptime per R&WO crew was 55 repairs per year.
RN-Service LLC optimization and update includes group restructuring. Such companies with non-core assets as RN-Aerocraft LLC, RB-Service-Sklad LLC, and RN-Service-Ecology LLC, were divested from RN-Service LLC. A series of preparatory actions were taken to divest the oil field equipment repair business from RN-Service LLC and create a separate specialized holding, RN-Remont NPO LLC, with its assets.
The second restructuring stage at RN-Service LLC is planned for 2016 and 2017, including the following activities:
- divestiture of companies with non-core utilities-related operations such as PNG-ORS LLC, PNG-KS LLC, and UKS LLC, and responsibility for process and chemical solution making services (UNG-NHS LLC);
- completion of the Repair unit restructuring and creation of RN-Remont NPO LLC holding;
- restructuring of TRKS and Spetstransport companies and establishment of specialized WR&WO and special transport services holding (merger of 20 well workover and process transport services companies with RN-Serivce LLC).
HYDRAULIC FRACTURING
In order to improve operational performance and satisfy the current demand, the Company is developing its own hydraulic fracturing (HF) service. It successfully integrated a new hydraulic fracturing unit using purchased assets of Trican Well Services LLC to satisfy own growing demands with production capacities. The Company covered, independently, 20 % of its own hydraulic fracturing demands in 2015. The strategic goal is timely satisfaction of Rosneft’s demand for hydraulic fracturing with an increasing demand for multi-stage fracturing (MSF) with the lowest costs and minimum risks.
The Company plans to develop its own advanced hydraulic fracturing competencies further in 2016 – 2017. Rosneft plans to develop relations with leading contractors in the sector as part of this initiative.
