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Integra brochure
(pdf - 1.6 mb)

January 31, 2008

A better day, better work

By Valery Epstein, director in charge of Engineering and Service Development, Uralmash-Drilling Machinery Closed Joint Stock Company (Integra Group)

Integra-Mashservice,  an independent service company, was incorporated in December, 2007 - January 2008.  This company has united the efforts of corporate manufacturers, engineering and distribution branches of the Service Directorate of Uralmash-Drilling Machinery Closed Joint Stock Company.  The basic objective of this consolidation is to streamline production processes and to arrange companies with different profiles into a strong centralized service provider capable of providing both product-related and on-site (regional) services.  The new service company has a number of significant advantages on this market, which is new for Integra: these advantages include streamlined access to original documentation and components, access to production technologies and testing facilities, and, finally, the support provided by the whole Group of companies.  However, several obstacles may hinder access to the regions currently covered by local service companies.  Nonetheless, the drilling machinery and service market is in the process of unprecedented growth, which, in combination with the above advantages and performance, make the future of the company’s machine building service quite optimistic.

The drilling machinery on the Russian market today may be split into two categories, each of which serves as a basis for an independent line of service business. Category 1 includes drilling rigs that have been operating for a long time.  A special portfolio has been put together which includes examination, diagnostics, workover, restoration, upgrading and retooling of drilling rigs.

Category 2, which is in the process of growth, includes advances oil rigs that require a different type of services.  These rigs are equipped with advanced electronic control panels, they require careful monitoring of their drives and mechanisms, warranty-based maintenance and repairs, initial and repeated equipment setup.  The above tasks can only be performed by service officers who have appropriate skills.

Category 2 includes the supply of spare parts, as many of the improved parts are new, and they have not been used in the manufacturing of drilling rigs in the past.  Several advanced drilling rigs have a modular structure that ensures time-efficient installation, de-installation and transportation of modules.

Lines of Service

Today, Uralmash-Drilling Machines has four lines of services:

(1) examination of industrial safety and diagnostics of the drilling machinery,

(2) workovers,

(3) upgrading of drilling rigs and

(4) their maintenance on site.

The above items can also be broken down into several packages.

As for the examination and diagnostics, apart from traditional services, or the assessment of the residual life of an oil rig and extension of its life term, new lines of service emerge.  They include overall examination of drilling rigs.  This service does not include maintenance prevention or repairs; it covers restoration of old machinery which is out of order.  There are many machines of this kind in Russia, and there is a strong demand for their restoration and repetitive commissioning.  These rigs require careful and high-quality examination, supply of spare parts and assurance of their compliance with effective safety norms.

Major repairs of basic components of drilling rigs require high-level skills and the availability of a material and technical base.  Several repair companies reduce major repairs to a mere replacement of details.  Instead, service departments should apply factory technologies.  For example, UrBO uses factory standards when it commissions the equipment that undergoes a major repair.  Therefore, the objective is to restore the equipment to its initial condition.

There is great demand on the domestic market for the upgrade of drilling rigs.  A large number of drilling rigs in Russia have been in operation for over 20 years.  They need retooling and reworking to assure their compliance with the latest requirements.  For example, the upgrade of ZD-86 may include improvement of its lifting capacity, replacement of its tackle system, drive and cable hoist components, which amounts to converting it into a new drilling rig.

One of the most widely used methods of the drilling rig upgrade is the installation of the overhead drive.  It may be mounted on almost every drilling rig model, including both clustered and traditional drilling rigs.

Rearrangement of fixed rigs into clustered drilling rigs is also popular.  At present this project is being implemented in Romania, where F400 drilling rig is being converted into a clustered rig.  This conversion is applicable to any rig, including those manufactured outside Russia.

Finally, all types of technical services are split into two constituents: product-related services and regional services.  Regional services as a new line of business are particularly attractive for the company.

Regional services include maintenance of mechanisms, power-driven and power-generating components, as well as boiler plants and specialized facilities.  These services also include the adjustment and manufacture of small items at local production facilities.

As for the prospects of regional services and the exhaustion of oil fields in Western Siberia, major drilling operations are transferred into other regions, particularly, into the North-Western region (Timano-Pechorskaya NGP), Yamal, Krasnoyarsk Territory and Yakutia.  Service operations will follow drilling operations.  The following issue arises in the course of new market assimilation by service providers: in the regions of traditional oil recovery, drilling companies have established strong lines of cooperation with local  service providers, which makes it very difficult for a new service provider to enter this market.  Moreover, this invasion is not the best approach in terms of efficiency and cash generation.

Therefore, UrBO has undertaken the strategy of point-by-point strengthening of its service provision positions. Service providers will move to those areas where the company’s equipment is supplied.  This method was implemented by the company when it incorporated its Orenburgtechservice in Buzuluk, and its Urengoi regional service center.  As for the short term, the company will access Yamal, Vankor and Usinsk, and it will also work in the Timano-Pechorsky region.

Service Provider Incorporation

Although services provision is quite a new line of business for Uralmash-Drilling Machinery (it dates back to April, 2006), its principal stages may be specified even now.  Regular overhauls at factories were initiated in May 2006.  Further, the company set up a specialized design office, which is independent from the central design unit.  Later, a special production site was purchased to vacate the principal production facilities.  The site was designated for overhauls.  In early 2007, industrial safety examination and diagnostics department was incorporated.  In June, Urengoi Regional Service Center was put into operation.  The first contracts were signed and the first orders fulfilled.

Later, all drilling rigs service companies were reorganized into independent enterprises within Integra Group.  Today this process is being completed, and soon a new legal entity to be named Integra-MashService will be incorporated.  The company is hopeful that the incorporation will reduce the time of the principal business processes and each production stage, including overhauling, upgrade, examination, etc.  This resctucturing will make a major impact on the quality and speed of the overhauls.  Each item to be replaced or restored will be approved by customers.  Towards this end, the company is implementing the most advanced methods of diagnostics, particularly, vibration-based diagnostics of the drilling machinery.