Good Results Achieved from Tapping Potential and Increasing Benefits

In the first half of this year, ZPEB Saudi Arabian subsidiary, through vigorously implementation of precision management and great efforts in improving scientific management, achieved the benefit of RMB13.3 million yuan and fulfilled the target of 44% by means of tapping potential and increasing benefit.

In order to strengthen the work of tapping potential and increasing benefit, ZPEB Saudi Arabian subsidiary set up a leadership team, distributing the profit targets to each crew, sticking to monthly meeting for analysis of business operation, and making specific measures for improvement. As to drilling and workover projects, the subsidiary has been focusing on enhancing the day-rate efficiency, speeding up the rig-move pace and strengthening check on cost control. Rig Sino-2 had achieved a good result of 91.44 points in the comprehensive evaluation by the client for the first quarter. Sino-8 and Sino-12 have maintained an annual average day-rate efficiency above 99.9%. Sino-8 created the highest target for monthly workover of 5 wells and monthly output value of RMB10.527 million yuan in May, and also created the new record for rig move of 40D with 41 hours. The subsidiary has widely performed the activity for innovation and increasing benefits with the theme of making benefits from sound management and acquiring benefits from practicing strict economy at the grass-roots crews. Sino-7 has reduced the shut-down time through rational and regular check and maintenance of equipment and reduced a lot of material cost, thus the time for repairing equipment took up only 0.6 day in the first half year. The staff in charge of equipment have been steadily strengthening rig-site management and performing regular check and maintenance on equipment, and had checked and maintained such equipment made before the year 2005 in each crew as the diesel engine of Model 3512 B, diesel engine of VOLVO with FAI EFI system and top drives, which has reduced the cost for repair of equipment by RMB 1 million yuan.