Development of a High-Tech Oilfield Services Business


In 2017, sustainable development of the in-house oilfield services business continued, and the acquired Targin-Burenie providing required capabilities to Bashneft was integrated into the drilling holding company. Burenie Servis Tekhnologii drilling company that owns eleven new drilling rigs with a load capacity of 320 tonnes was also acquired. The unit carries out production drilling at the sites operated by Kondaneft, Rosneft’s oil producing subsidiary, in the Khanty-Mansi Autonomous Area, and drilled a total of 471 thousand m in 2017. Resulting from the acquired assets integration, the RN-Burenie Ufa and Khanty-Mansiysk branches were established, with the total number of branches reaching 12.

Under the continued equipment upgrade program, a contract was signed for the delivery of eleven new drilling rigs (produced in China) to the Volga-Urals region. In addition, two Chinese-built mobile drilling rigs have been commissioned in the region.

The fleet of in-house service drilling rigs in 2017 amounted to 283 units at an average age of 11 years, and the number of drilling crews increased to 257. The share of in-house drilling services remained flat at 60%, with a 20% increase in meters drilled year-on-year and over 2.1 thousand wells drilled. The commercial drilling speed increased by 9% year-on-year.

~ 60% in-house services share in Rosneft’s total production drilling

As part of the project to develop the Khatangsky license area in the Krasnoyarsk Territory’s north, the drilling crew of the RN-Burenie East Siberian branch drilled the first Central Olginskaya-1 appraisal well on the East Arctic shelf, and well tests are scheduled for 2018.

At a RN-Yuganskneftegaz project, a drilling crew with RN-Burenie’s Nefteyugansk branch set a Rosneft record of 100 thousand meters drilled in 2017.

Own Drilling Rigs
60% of own drilling rigs in service for less than 10 years

Well Workover and Servicing

In 2017, Rosneft performed 39,407 well workover and servicing operations, which constitutes 16,717 well workover operations and 22,690 servicing operations, and amounts to 34.6 well workover crew operations (including development and abandonment of wells) and 109.8 well servicing crew operations per annum.

In implementing efficient in-house services, Targin KRS was integrated into the Company’s structure, RN-Service's Ufa branch was created, and RN-Service reorganization was initiated by its merger with Targin KRS.

Under the Strategic Partnership Agreement signed between Rosneft and KAMAZ, 218 APR‑60/80 workover rig vehicles were delivered to RN-Service in 2017 for well workover crews.


RN-Service is currently the largest well workover and servicing enterprise, with branches in 13 Russian regions

The company provides well servicing to 18 Rosneft upstream companies, taking a 41% market share in the workover and servicing of Rosneft wells and a 23% share in the workover and servicing of wells in Russia

As at December 2017, the number of active well workover and servicing crews totaled 702

Hydraulic Fracturing

In 2017, the total number of in-house hydraulic fracturing operations reached 3,931.

The oilfield service price benchmarking performed in 2017 demonstrated that the in-house (RN-GRP) service prices are lower than those quoted by external service providers for most Group Subsidiaries (from –5 to –14%).

As of 2017, the share of RN-GRP in the total Rosneft hydraulic fracturing and coiled tubing operations amounts to:

  • 25% – hydraulic fracturing
  • 12% – coiled tubing operations.

Oilfield Equipment Repair

In January 2017, a specialized drilling and oilfield equipment repair holding company was established through a merger of seven RN-Service subsidiaries with LLC RN-Remont NPO and a transfer of two service companies (OJSC KNG-Mashzavodservice and LLC Samarskiy ITC) under the management agreement.

In 2017, LLC Targin-Mekhanoservice, a Targin Group asset acquired on 30 December 2016 and currently servicing Bashneft, was integrated into Rosneft’s structure and put under the operational control of LLC RN-Remont NPO as part of its newly-established Ufa branch.

LLC RN-Remont NPO provided oilfield equipment maintenance services in the amount of 1,574,081 days and 645,065 items of equipment, repairing 607,069 items of oilfield equipment and tubing, and manufacturing 316,626 spare parts and other products.

LLC Targin-Mekhanoservice provided oilfield equipment maintenance services in the amount of 1,117,763 days and 3,040,448 items of equipment, repairing 543,312 items of oilfield equipment and tubing, and manufacturing 85,285 spare parts and other products.