Good Situation Appears in ZPEB Overseas Market

Good news have kept coming from ZPEB overseas markets since the spud-in of the well on the New Year’s Day by Sinopec-186 which is ZPEB’s first rig crew entering Kuwait. The newly developed markets such as the drilling and workover projects in Kuwait, Iran and Mauritania and the projects of drilling exploratory wells in Saudi Arabia have been in the stage of spud-in or preparation for commencement in addition to the existing consolidated markets, making a good start for ZPEB overseas market.

The good start of ZPEB overseas markets this year is mainly due to the acute judgment and correct understanding of the market situation, said Hui Zhiwei, director of marketing department of ZPEB International. Facing the tough market situation, ZPEB has made a breakthrough through steadily adjusting of market structure and optimizing the market to be a high-end and highly efficient one, which has laid a solid foundation for the good start of the New Year.

The traditional main markets have been further consolidated. For example, ZPEB Sudan subsidiary has been strengthening the development of continued workloads and reserving the follow-up projects in advance, making Block 3/7 become a key market for enhancing benefits. In addition, four seismic survey contracts have been successively awarded to the subsidiary by the clients of Block 9 and 12A, which has restarted the work of several seismic crews. Now, Sudan has become ZPEB’s most stable overseas market. ZPEB Saudi Arabia subsidiary has timely adjusted the marketing structure in accordance with the market situation, 7 rigs have been extended the contracts for another one year, 2 rigs have for the first time entered the market of drilling exploratory wells, 3 rigs have been awarded the 5-year packaged drilling contracts through cooperation with Halliburton, and 3 rigs have participated in the bidding for drilling gas wells, which have changed original single operation of drilling or workover into the more diversified operations and strengthened the competitiveness. ZPEB Yemen subsidiary has not only renewed or extended all the existing contracts, but also developed 4 new markets. 6 shut-down rigs have been successively resumed the operation. In addition, the tubular tools service has for the first time entered the external markets, concluded contracts with many drilling companies for repairing and testing of drilling tools. ZPEB Kazakhstan subsidiary has mobilized another 2 rigs to the area, making the number of rigs reach 12 in total in Kazakhstan. Meanwhile, 2 wireline logging crews have been mobilized to the site, which has made ZPEB wireline logging service return to the overseas market.

New markets in three countries have been developed. In Kuwait, 3 drilling rigs and 4 workover rigs of Model 750 have been awarded the 5+1 year contracts with contract values of about USD400 million, making Kuwait another big market. In Iran, the contract of one 7,000m drilling rig has been signed for the early-phase production project in the oilfield and it is expected that another one 7,000m drilling rig and one fracturing unit will be awarded the contract in the first-phase project. In Mauritania, one 7,000m drilling rig has been awarded the contract of drilling 1 + 3 wells by Total.

A person in charge of ZPEB International expressed that a good start also means more challenges. In this year, ZPEB will make great efforts to ensure the continuity of projects and appropriately expand the market under the premise that the existing contracts have been smoothly extended in the markets of Sudan, Yemen, Indonesia and Ecuador, realize the regional development of the Central Asian market, closely follow up the petroleum engineering projects in Uzbekistan, strive to make a breakthrough in this year and form a regional huge-sized market. It will further expand the Middle East market by intensively adjustment of equipment structure in Saudi Arabia market, increasing the proportion of deep-well drilling, exploring the market for drilling exploratory wells, gas wells and water wells, strive for passing the qualification of surface construction for Saudi Aramco and expanding new fields of services. In Kuwait, it will further expand the market and create a new big market based on the current 7 rigs. In Iran, it will mobilize more operational crews with all kinds of services, achieving the goal for making the output value in the Middle East market account for 50% of the total in ZPEB overseas market.

This year, ZPEB will steadily promote the development of surface engineering projects in overseas market, adhere to the policy of fulfilling the task on schedule and with quality assurance, seriously fulfill the existing contracts, explore and gain wider experience in management of EPC turnkey contracting project, steadily expand the market and lay a solid foundation for further development.