ERIELL Group: Presents 2020 Operational Figures and 2021 Forecasts

ERIELL, an international oilfield services group, presents information on production indicators achieved in 2020 and forecasts for 2021.

Despite the difficult economic situation around the world, ERIELL demonstrated its resilience and ended the year with production indicators almost at the level of 2019. Projects were concentrated in Russia and Uzbekistan, with 1.33 million meters drilled (2019: 1.37 million meters). The number of wells drilled also remained almost identical – 344 (2019: 350).

During the entire time of the pandemic, the Group did not have any work stoppages or any other downtime. This achievement, performance and overall sustainability of ERIELL are the result of:

• Flexibility in organizational development;
• Use of the “technical limit” indicator, which allows you to achieve an optimal combination of safe drilling as soon as possible with the lowest cost. This made it possible to reduce the drilling time on some projects by a third;
• Improving the efficiency of project management;
• Creation of our own drilling support center.

These technical and management decisions have had a major impact on the Group’s performance. The company is also very grateful to its employees and teamwork, without which ERIELL could not have achieved such results.

Other operating indicators:

• Support for the national strategy of Uzbekistan to increase hydrocarbon production (construction of new wells, overhaul of existing and creation of new technological facilities);
• Further preparation for drilling and development of 23 production wells in the Garraf field (Iraq) after a won tender;
• New records on the most complex projects of the company in Russia.

The Group has good prospects for 2021, although general economic uncertainty in the world remains. The company makes a conservative forecast and plans to complete 382 wells and drill 1.32 million meters, but hopes these forecasts will be revised upwards.

Vitaly Dokunikhin, First Deputy Chairman of the Management Board of the ERIELL Group and General Director of ERIELL NEFTEGAZSERVICE:

“Despite a very difficult year for the whole world in 2020, due to the pandemic and its consequences, ERIELL managed to maintain indicators at the level of 2019. This became possible thanks to the constant work on the organizational development of the company. We opened our own drilling support center, introduced new IT solutions, improved the project management system, and improved a number of other internal processes of the company.

Another important component of a successfully completed year is our employees. We tried to mitigate the negative aspects of the pandemic as much as possible: we ensured a round-the-clock presence of medical personnel at the facilities, introduced additional days off for employees with an extended shift, organized treatment and recreation in sanatoriums, and conducted online training.

Thanks to our team, during the entire time of the pandemic, we did not have any work stoppages, or any other downtime, moreover, despite the difficulties of 2020, we regularly reached and updated records on the most difficult projects. We are confident that thanks to our team of professionals and constant work to improve internal processes, in 2021 we will once again demonstrate our effectiveness and improve the indicators of 2020 and 2019. “

In 2020, projects were concentrated in Russia and Uzbekistan. Work was planned in Iraq and Bangladesh, but due to the pandemic, the start of work was postponed to 2021. In Iraq, ERIELL had previously won a Petronas tender for the drilling and development of 23 production wells in the Garraf field, while in Bangladesh, it is planned to drill 3 exploration wells on Bol Island.

In Uzbekistan, ERIELL continues to work on a large-scale program for the construction of new wells, overhaul of existing wells and the creation of new technological facilities in support of the decree of the President of the Republic of Uzbekistan on increasing hydrocarbon production for 2017-2021. Together with contractors (Uzbekneftegaz drilling companies) in 2020, ERIELL drilled 84 wells and carried out hydraulic fracturing on 22 wells. In the Republic of Karakalpakstan, Kashkadarya, Surkhandarya, Bukhara and Andijan regions, 90 oil and gas wells were connected, the construction and commissioning of 90 loop pipelines with a total length of 114.3 km, 8 gas collector pipelines with a length of 114 km were completed. and 7 gas collection points were built. 16 vertical and directional wells were drilled on the Gazli UGS Expansion project using telemetry technologies, three of which were drilled ahead of schedule. Within the framework of the Jizzakh Petroleum JV LLC project under the program to increase oil production, 23 wells were drilled, 20 wells connected, the construction of pipelines-loops 15.2 km long and power lines 10.5 km long were completed.

The largest and most complex project in Uzbekistan is still the Mustakillikning 25 Yilligi field, where 7 wells were drilled in 2020.

In Russia, in 2020, projects of the ERIELL Group , as well as in 2019, are concentrated in the area of ​​the Yamal and Gydan peninsulas on the gas projects of NOVATEK, Gazprom Neft, and from the second half of 2020 – Gazprom.

In the summer, ERIELL successfully drilled the first Jurassic well at the Yuzhno-Tambeyskoye field (Yamal LNG), is currently working on the second, in November the company entered a new project – the Medvezhye gas field (Gazprom Invest Nadym branch), where will drill 4 production wells by the end of 2021.

In 2020, ERIELL celebrated 10 years since the beginning of cooperation with the Arcticgas company (a joint venture between NOVATEK and Gazprom Neft). To date, more than 200 wells have been drilled for Arktikgas at the Urengoyskoye, Yaro-Yakhinskoye and Samburgskoye oil and gas condensate fields. This is one of the most complex projects in Russia where ERIELL works . Now work is underway at the Urengoyskoye oil and gas condensate field on the Achimov deposits.

The company is actively working to improve the technological support of the drilling process and already in March, by analogy with the scientific and technical centers of its main customers, it formed a Drilling Support Center. One of the main functions of the center was to reach the “technical limit”, thanks to which the drilling time of wells was reduced by one third at the Arcticgas and NOVATEK-Tarkosaleneftegaz projects.

In Russia in 2021 ERIELL will continue to work on the projects of Achim Development, Gazprom Invest Branch Nadym (Gazprom), NOVATEK Group (Arcticgas, Arctic LNG-2, NOVATEK-Pur , NOVATEK-Yurkharovneftegaz, NOVATEK-Tarkosaleneftegaz, Yamal LNG), Gazprom Neft Group (Messoyakhaneftegaz, Gazpromneft-Yamal, Meretoyakhaneftegaz) and will take part in the new NovoKhim project ( Yerkutayakhskoe).

Continuous work on organizational and technological development has allowed ERIELL to demonstrate excellent production performance and renew previous records.

Major records of 2020:

• The Urengoyskoye field (“Arktikgas”), a well with a depth of 5576 m and a length of the sub-horizontal part of 1589.8 m, was drilled in 40 days, 20 days ahead of schedule and 0% LPT.
• The Harbeyskoye field (NOVATEK-Tarkosaleneftegaz), a horizontal well with a bottom hole of 4774 m. Was drilled with a record acceleration for this field in 29.5 days, 15.5 days ahead of schedule and 0% LEL. When drilling the liner section, the maximum mechanical speed of 49.7 m / h was reached, with an average rate of 40-45 m / h.
• Novoportovskoye field (GPN-Yamal), the record for the maximum daily footage per Uralmash 5000/320 EK-BMCh drilling rig was 1312 m.
• Eva-Yakhinskoye field (NOVATEK-Yurkharovneftegaz), an interval 1964 m long was drilled in the well and a liner 2169.4 m long was successfully run.