In-house service

The Company continues developing and improving the in-house oilfield services to ensure high-quality services and market pricing conditions.

In-house Service Share
Company’s Drilling Rigs, pcs

Drilling

In 2018, 6,431 thousand meters of rocks were drilled by in-house drilling services at the Company’s facilities (1,919 wells, including 33 exploration wells). Horizontal drilling share reached 48% (+13% year-on-year).

The current fleet of in-house service drilling rigs in 2018 amounted to 274  units with an average age of 11 years. The number of drilling crews was 253.

KEY ACHIEVEMENTS

The program for rolling out the technology of drilling horizontal two-string wells using hydrocarbon-based solutions was successfully continued. Under the refitting program, 11 new drilling rigs were installed and commissioned in the Volga-Urals region, three drilling rigs at Vankor cluster facilities, two drilling rigs at LLC RN-Yuganskneftegaz facilities, and one drilling rig at JSC Kondaneft facilities were commissioned to extend the production capacities.

RN-BURENIE BECAME THE WINNER

of the competition organized by the Russian Ministry of Energy for the best socially oriented company in the oil and gas industry in 2018 in Employees Motivation and Engagement Promotion category

Well Workover and Servicing

RN-Service is currently the largest well workover and servicing enterprise, with branches in 13 Russian regions. In 2018, the company provided well servicing to 20 Rosneft upstream companies, taking a 40% market share in the workover and servicing of Rosneft wells and a 23% share in the workover and servicing of wells in Russia.

In 2018, Rosneft performed 39,206 well workover and servicing operations, i.e. 1,047 workover operations above the business plan (103%). It amounted to 35.4 well workover crew operations and 113.0 well servicing crew operations per annum, +115.0 and +101.3% of the business plan, respectively. The average operation duration reduced relative to the plan by 15% for well workover operations and by 3.7% for well servicing operations.

Under the Strategic Partnership Agreement signed between Rosneft and KAMAZ, 249 APR-60/80 workover rig vehicles were delivered to RN-Service for well workover crews in 2018. Through the agreement validity period from 2017 to 2018, over 30% of the fleet of workover rig vehicles was renovated.

689  crews
for wells workover and servicing
23%
RN-Service market share in Russia


Hydraulic Fracturing

The Company acquired three new hydraulic fracturing fleets and put them into operation in 2018.

Over the same year, RN-GRP performed a total of 4,430 hydraulic fracturing operations at Rosneft’s fields. The production program of the Group Subsidiaries fully involved 18 fleets of LLC RN-GRP.

During the implementation of the corporate hydraulic fracturing simulator that can replace western alternatives, LLC RN-GRP used RN-GRID for conducting 100% of hydraulic fracturing operations in all regions of operation. As of 31 December 2018, more than 4 thsd operations were performed with the use of RN-GRID. The agreement for the foreign analogous software was terminated.

Oilfield Equipment Repair

In 2018, the Holding provided oilfield equipment maintenance services in the amount of 2,518,293 days and 4,701,360 items of equipment, repairing 874,869 items of oilfield equipment and coiled tubing, and manufacturing 536,440 spare parts and other products. The share of in-house electrically driven centrifugal pump services remained at the 10% level, that of tubing repair went up by 5% and reached 55%, and the repair of the oilfield equipment achi eved 45%.

In 2018, additional types of services were implemented:

  • services for repair quality control and efficiency assessment of electrically driven centrifugal pumps operation;
  • services for automated measuring group units overhaul;
  • services for heat exchangers overhaul;
  • services for cleaning a vertical cylindrical steel tank with MagaMAX complex;
  • services for packaged equipment supply for the Rosneft’s upstream companies.

LLC RN-Remont NPO operates in the Sakhalin Region, the Krasnoyarsk Territory, the Tomsk Region, the Khanty-Mansi Autonomous Area – Yugra, the Yamal Nenets Autonomous Area, the Komi Republic, the Republic of Bashkortostan, the Samara Region, the Orenburg Region, the Stavropol Territory, and the Krasnodar Territory.

Transportation Services

In March 2018, LLC RN-Transport, a specialized transportation holding company, was established through a merger of LLC Targin Logistics with eight transport units of LLC RN-Service. In April 2018, Rosneft took control over LLC Tekhnologichesky transport (Izhevsk), which was previously managed by LLC RN-Service.

To improve the fleet operating efficiency, over 500 units of unclaimed equipment were put out of service. Besides, Leksema Integrated Enterprise Management System (ERP system) was integrated and rolled out across all branches.

KEY ACHIEVEMENTS IN 2018:

89%
fleet technical availability rate
7,640  items
average number of equipment
21,366  thsd machine hours
scope of the services provided
6%
renovation of current fleet
451
motor vehicles and special-purpose machines supplied
69%
fleet utilization rate
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