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Integra brochure
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July 02, 2007

Qualitative Service For Allocated Budget

“Integra” Group of companies  being one of the leading market participants of oilfield services in Russia and CIS, presently positions itself in medium-technological sector of service provision. One of the major achievements of  Integra Group in 2006 was its merge with “Smith Eurasia” with ten-year experience in high-tech segment, with reputation of authoritative service company and wide range of clients. Administration of “Integra” considers “Smith Eurasia” a unique “motor”, that allows the firm to compete with such western service companies as Baker Huges, Halliburton, Schlumberger in definite branches of high-tech services. In many regional markets “Integra” in the field of high-tech services becomes a significant player, and in some markets it pressed the competitors.We present you an interview about high-tech projects of  Integra Group that are fulfilled by the specialists of “Smith Eurasia”. Director of IPM and Supervising Department Damir Tuktarov and Director of Business Development of  Workover, Drilling and IPM of “Smith Eurasia” Group Sergey Shandin participate in the interview.
Editor: Damir Hatipovich, let’s start our conversation from what exact  technologies, including in the domain of “high-tech” were brought to Russian market  from established tandem of “Integra” and Smith Eurasia? D.T.: First of all, in the result of such tandem a “self-sufficient” service company with a new ideology of service provision was created in Russian market.  Probably for the first years of established tandem “Integra” and “Smith Eurasia” it is early to speak about results. For the present moment a laborious work is carried out in structuring of internal services, standardization implementation, economical and strategic modeling of processes.
Editor: If it turns out that high-tech services at Russian service market would be less demanded in comparison with “traditional” ones? D.Ò.: According to data of  Douglas-Westwood, the total market of drilling, oilfield services and related market on production of equipment and drilling devices will increase from the present level assessed in $11,8 billions up to $ 24,8 billions by 2011; i.e. the increase will comprise about 110%. There are also many possibilities in the market for the companies providing services on “one-day” basis, so called “traditional”; but we strive for long-term projects. To obtain such contracts we should really interest the customer, explain advantages that he will benefit from IPM-projects (integrated project management). The main advantage is that the customer obtains a qualitative product in indicated terms without execution of laborious routine work by himself and in limits of allocated budget. To provide the most advantageous conditions, to justify application of technological resolutions, to offer another, more effective management strategy is the goal of IPM group. We are pleased to realize that the quantity of progressive customers grows. The market laws are rigorous; every consumer should find the goods (service) corresponding to his requirements and more often to his “wallet”.
Editor: Sergey Petrovich. For Russian market IPM is still “exotic”. I would like to understand what the essence of IPM-projects is, what their specific is, are there any risks? What are the advantages of IPM-projects and what alternative they have?S.SH.: The advantages of integrated project management for the customer consists in its transparency, controllability, predictability.  Also an important advantage is a possibility to correct the project, to implement technical and technological changes (innovations) in the work process. I should mention that IPM gives the possibility to the customer without executing routine work and without creation of ponderous managing body, “to keep one’s eye on the ball”, to know all peculiarities of the well, to participate in every day control and correction of construction program. This is an important factor for customer, because he is the “master” of the well and takes further actions in its exploitation process. Nevertheless, the specific of Russian market is such that more than 90% of contracts today are concluded at “ready-to-operate” basis. Realizing that it takes time for changes in customer’s mentality, our company makes advances to market demands and offers its understanding of “ready-to-operate” basis. Its main distinction from formed image in the market consists in attraction of professional specialized services to fulfill tasks at a higher level.
Editor: And how successful do the specialists of ‘Smith Eurasia’ manage with such projects? As there are no similar projects… S.SH.: Indeed, both in terms of service company, and in several projects of one customer the management specific may vary significantly. It happens because each IPM-project is individual and depends on the goals and purposes stated by the customer. Presently in Russian market of oil services a range of companies perform as IPM-operators. However, the ideology of almost all managing companies presented in the market is reduced to complex and not integral approach for project managing. Traditionally the company specializing in separate services bears the functions of project management, attracting co-executors for work. Somehow it re-completes itself with lacking services, but at that it definitely uses services present in its composition as non-alternative. Such conception is not much different from “ready-to-operate” basis. Idea of integral project management as our company sees it is based on the development of project starting from design and estimate documentation till putting the well into operation. IPM project management develops the strategy in details and the techniques of project execution, with an aim to achieve tasks targeted by the customer in indicated terms with maximal efficiency and in limits of allocated budget, and attracting internal services on a competitive basis. The acquired experience of work “Smith Eurasia” in different regions of Russia and CIS countries allows us to affirm that we can undertake the realization of any ambitious projects, though it may sound too self-opinionated. Moreover, IPM specific allows the customer to control program execution at any stage in link chain “Customer – Managing Company - Executors”, the project is transparent at any level, all contacts and price offers are open to customer. By the way in case if the customer is a public company, the scheme of project realization is very convenient, because it is absolutely transparent.
Editor: What is the experience of “Smith-Eurasia” in execution of IPM-projects; in what terms does the company fulfills such works, with what customers were such projects jointly made, what was their specific? What IPM contracts are currently fulfilling? What contracts are intended for signing? S.SH.: SC “Smith Eurasia” starting from year 1996 successfully executes IPM-projects of gas and oil producing companies of CIS countries and RF. At first, several large-scaled IPM-projects were fulfilled in Kazakhstan. These projects included the complexity of works in well drilling from projecting till producing and export of the first oil.  Among executed projects until present I should mention joint projects FIOC and “Mangistaumunaigaz”.  The project of extremely deep well for company “Uzbekneftegaz” is of great interest, also long-term projects with “Lukoil Uzbekistan Operating Company” and “Lukoil Overseas” in the domain of quality control of well construction. Such different in structure and complexity IPM-projects as drilling of deep wells in Kalmykia, projects for OSC “Itera”, OC “Tatneft”, OJSC “Kalmneftegaz” were successfully finished.  Present IPM-projects are not less valuable. In terms of the project of exploitation well drilling at Vankorskiy deposit (“Rosneft/Vankorneft”), we should have met more than 30 projects. The works were fulfilled with four advanced drilling devices. Communication with the “Continent” was possible only by air craft transport  or winter roads with an extension for more than 200 km that are available only four months per year. A unique in its technology was IPM-project for well drilling with complex construction and horizontal spaces of more than 1000 meters at Yurkharovskiy deposit. For execution of this project two drilling devices were constructed with working load capacity of 320 tons completed with up-dated equipment, Top Drive system, cleaning systems for work with solutions on hydro carbonaceous basis and FOS block.
Editor: As far as we know, one more “exotic” branch of your work is considered to be supervising in Russia. Can you please tell us about this branch?D.T.: It is really an actual question! The supervising market in Russia is in embryonic state. That kind of supervising that was formed in Russian oil companies, acts on the basis of quite understandable for Russia and quite alien for any other oil world procedure with elements of our mentality.  If briefly formulate the procedure, it would sound: “to catch, to condemn, to penalize”, i.e. in our real life it is the phenomenon of SAI (State Auto Inspection).  Supervisor of “Smith-Eurasia” Company is somehow a chief of drilling, he should be interested in pre-planned (predictable), continuous project work. This is a link of one and the same chain both in inter-relations with services involved and in inter-relations with the customer. His task is to warn, predict non-standard situations, exert any efforts to reduce non-production time maximum, effectively operate all extravagant mechanisms (resources). Certainly to comply with all requirements, you are in need of professionals with experience in different regions, who had passed professional training, and possesses the characteristics of leader. Besides, one supervisor, how professional he could be, is nor able to solve all problems arising in the construction process. A coherent work of engineering group and logistics service are required. Therefore the cost of service cannot be cheap, but nevertheless it justifies itself completely from economical point of view.  Editor: What is your expert opinion: is the scenario of market development of oil services possible when our oil and gas industry workers would rely only on their own forces? As, out of many major Russian oil and gas holdings, many of them have eliminated their “usual” service subdivisions, and at the same time they preserve different science-intensive and high-tech structures, and they even develop actively… D.T.: I can predict unambiguously that “own” services in some oil companies will be preserved, somewhere the main goal would be economy, somewhere the mentality of the top-management of oil company. Simultaneously the independent service companies would be in great demand, and hence, they would develop. According to our assessment, the outsourcing process will be carried out in many oil and service companies.  Demand in building up of CHC production and economy of expenses for service group maintenance would finally force the company-operators to attract third-party service, which will develop, perfect and include new technological formulation and innovation technique. In the oil service market a sound competitive fight for quality, terms and price, would appear among the companies. And we really acknowledge it.
Editor: Could you please depict the most interesting exact examples of work in such branches, that we were talking about?S.SH.: A significant example of successful collaboration with Integra Group was the project of exploration well drilling named Priyutnenskaya-1, 5400m depth in Kalmykia. Following the results of well drilling, we managed to achieve the reduction of drilling duration up to 40% and expense reduction up to 20% in comparison with planned indices.  A successful project of extremely deep well drilling with horizontal ending in Ukraine, after the end of intensification process, the well debit increased more than 20 times.Generally speaking we do not consider that these results are our achievement, this is our work, for execution of which we are requested by oil companies, striving for maximum efficiency and contractor’s output.
Editor: Will you please tell us about your work with “Lukoil” (and “Lukoil Overseas”) and particularly about your work in Komi, Uzbekistan, Kazakhstan and other regions. D.T.: We had long, partnership relations with OC “Lukoil”. Both in the central office and in regions of “Lukoil” professional engineer-drillers work. The company actively applies new technologies, they were one of the first who tried out the drilling system “on depression”, they work with application of coil tubing utilities, they actively apply modern intensification methods of oil production, etc. More intensively we collaborate with OC “Lukoil” in Middle Asian regions (Uzbekistan), where we provide services in operation and control of construction and de-conservation of wells. The works are carried out in extreme conditions. Service companies from different countries of the world are engaged in these projects. In spite of many problems related to qualification, service provision, difficult mining and geological conditions, we manage to fulfill targeted task.  .In Caspian Sea water zone we also rendered supervising for joint Russian-Kazakh project in construction of maritime well. For the central office of “Lukoil” we executed expertise of design and estimate documentation for Western Siberia.Moreover, for “Lukoil-Komi” Company “Integra” accomplishes a range of contractor works in well construction on “ready-to-operate” basis. We hope that soon “Lukoil” would appreciate our work in other regions and business spheres.