Text 3. The fidmash company’s activity in the coiled tubing equipment market

Talking about the FIDmash company's activity in the coiled tubing equipment market one can state that no company can offer quality serv­ices for oil and gas producers unless it has appropriate equipment. Such major companies as Schlumberger, Halliburton, and BJ Services distinguish themselves by employing high-quality multifunctional equipment. FIDmash company has been constantly making efforts to improve its produc­tion. Initially (1999-2001), the FIDmash equipment was manufactured in accordance with the requirements of the customers of the day so only domestic components were used.

Some of the Russian-made components (certain hydraulic elements and lifting mechanism for equipment installation, etc.) were less reliable, especially under extreme conditions. This posed certain limits for the operators wish­ing to perform unique or challenging tasks. The second gen­eration of the equipment (2002-2004) overcame all the aforementioned issues in terms of component reliability, it still lacked all-inclusiveness and stability of the solutions employed. The third generation of the machinery intro­duced in 2005 was more export-oriented to supply interna­tional service companies in full compliance with their requirements.

The fourth generation equipment, which was introduced in 2007 offers the best of the solutions already tested by international companies, including several unique solutions. The company also took steps to diversify its production. Five years ago it only produced coiled tubings, but at pres­ent it also produces preventors and pumping equipment, devices for drilling fluid preparation, hydrofracturing complexes delivered both complete with all the relevant kitting-up (including blenders) and equipped with separate elements.

It can provide a service company with all the equipment necessary for operations, for performing unique and the most demanded operations in the market, 50 percent of the deliveries is made for international servicing companies, 30 percent for the companies from the CIS and 20 percent of the deliveries goes to Russian oil and gas production and servicing com­panies. If to compare figures for the previous years one can see that the international servicing companies are constantly increasing their orders.

Text 4. New driilling prospects of ritek

Established in 1992, Russian Innovation Fuel-and-Energy Company (RITEK) has been focused on pro­vision of high-quality services to the Russian hydro­carbon-producing companies. It became an adequate competitor to the western companies in the area of rehabilitation of the inactive (temporarily shut-in) wells. The profit of the innovation company increased due to incre­mental production, achieved by using RITEK’s advanced development works at the oil fields of LUKOIL, Tatneft and Rosneft. When RITEK made a decision to create its own mineral resources base, it received fields with a complex reserve structure. Then the experience gained in the course of this contractual work and the considerable stock of devel­oped technologies proved useful. At present, RITEK pos­sesses the right to 55 objects of intellectual properly. Being one (if the leaders in the oil sector in the oil production growth rates (20-30 percent a year), RITEK leaves behind many big companies.

One of the largest acquisitions of the company - Sredne-Kbulyinskoye field, is located in almost impassable swamps, in the permafrost zone of the Yamalo-Nenetsky Autonomous District. This field, having been placed in production in 2002, provides considerable incremental oil production compared to the other fields of the company. Almost 1 mln tons of oil was produced from this field last year. High performance is ensured not only by the so-called "early age" of the field, but also by the application of advanced technolo­gies.

To improve the oil recovery factor and increase volumes recovered at the Sredne-Khulymskoye field, in 2004, researchers of the InstitutFrancais du Petrole developed an engineering design for drilling of horizontal wells, which took into account a number of technical and economic parameters. The first horizontal well in the most complex central part of the southern block of the field was drilled in 68 days and completed with the participation of the general contractor for the project - the Schlumberger service com­pany. The well put in operation by RITEKNadymneft pro­duced daily 420 cu. m of oil. This number is 10 times higher, compared to the estimated performance of a straight direc­tional hole in this license block. The first well enabled verification of the geological structure of the field and improve­ment of the production level. It was followed by two move wells drilled in 2004, with 800-900 m horizontal hole length. Another two wells were drilled early the next year.

Successful experience in horizontal hole drilling enabled the Company to initiate development of the hard-to-recover reserves of the Sandibinskoye field, also located in the Yamalo-Nenetskv Autonomous District. In September of that year, the First National Drilling Company completed drilling of a development well with a horizontal bottomhole section on the Ob Hay shore. Its depth exceeded 3.000 m, and the length of the horizontal section along the pay bed exceeded 400 m.

However, RITEK did not stop at this point. Utilizing the experience in horizontal drilling, they performed opera­tions on rehabilitation of 15 oil wells by sidetracking.