Getting to Know You (in Poland)
Experts typically mention the lack of drilling rigs as one of the potential obstacles to the development of shale gas in Europe.
For Poland, whose efforts to produce natural gas out of its shale basins may in part have to do with a desire to wean itself from Russian gas, a private Russian enterprise, Eurasia Drilling Company (EDC) Ltd. might be able to help out.
That’s an understatement. EDC is the leading onshore & offshore provider of oil & gas development and exploration well drilling services in the Commonwealth of Independent States (CIS). On the market since 2004 following its acquisition of the in-house drilling division of OAO Lukoil, EDC’s share of the onshore drilling market in Russia is 24%. Last year, the company entered a strategic alliance with Schlumberger in the CIS. As the only Russian offshore drilling service contractor, EDC also constructs oil and gas E&P wells in the Caspian Sea.
Kim Kruschwitz, Vice President, Marketing and Investor Relations at EDC provided an introduction to the company to attendees at the Global Shale Gas Plays Forum in Krakow, Poland.
“We’re new to most of you,” he admitted, explaining: “We’re here to learn about the potential of shale gas in Poland. We would certainly like to participate in this market, which we think has huge potential.”
Mr. Kruschwitz said that EDC was the largest drilling company in Russia and consequently in the Eastern Hemisphere.
“In addition to our successful organic growth historically, lately we have announced some acquisitions,” he said. “We currently have a fleet of 477 rigs, and we have an ongoing investment program to add new rigs from our suppliers. So far this year we’ve completed two acquisitions, adding about 70 land rigs and a second offshore jack-up.”
Last year, he said, EDC had 24% of the Russian market, which was second biggest land drilling market in the whole world. “Last year we drilled 4.1 million meters and this year we expect to drill 4.8 million.”
“We started off in Russia and that remains our primary operational area,” said Kruschwitz, who showed a map of the company’s activities in Russia and Central Asia. He also noted EDC had operations in Kaliningrad, which was close to Poland.
Incidentally, a new deep long well was being drilled in Kaliningrad, he reported, with some suppliers coming from Poland.
He also pointed out EDC’s commitment to QHSE, explaining “We consider ourselves a Russian based company with a western attitude. We continue to outperform the industry average on major safety indices.”
Then, Mr. Kruschwitz showed photographs of offshore operations on the Caspian Sea where EDC is active in the Russian, Kazakh and Turkmen sectors, and said that EDC was building a new jack-up rig to supplement the two it already owns and operates.
He also spoke of EDC’s onshore operations and highlighted the range of depths that EDC’s onshore drilling rig fleet is capable of reaching.
“Most of the wells we drill are from multi-well pads,” he said, “which are useful in restricted access areas, such as densely populated areas, and to keep your costs down. Generally we are contracted as an integrated service provider, providing rig and crew plus all associated drilling services.”
Showing a rig in nearby Kaliningrad, he said: “Horizontal drilling is becoming very important in Russia: last year we drilled about 131 horizontal wells and this year we’ll complete about 245. Rigs capable of drilling these type of wells are the style you’d want to see in Poland.”