Drilling Magazine Media Intelligence, Contextual Wisdom
Mohammad Reza Takayedi, Deputy
Manager of the National Iranian
Drilling Company (NIDC) is one
of the most influential managers
with years of experience in
Iran drilling industry. As more
than 60 percent of local drilling
rigs are owned by NIDC, he is
deeply in cooperation with all
the stakeholders of the country.
1. As the first question, how do you see the local rig fleet in term of numbers and figures?
Iran, as one of the key players of world oil and gas players, has a very interesting market in drilling section. Since the establishment of NIDC, we managed to handle major parts of drilling operations in-house. According to available statistics, there are more than 120 rigs in Iran, out of which, the majority are active at the present. With an aim to maintain or increase the current crude oil production,this rig fleet are the vital means to survive for the country. Apart from the recently purchased rigs from American and European companies, the rest were purchased from China. The local manufacturers have managed to build the mast part, while the rest was procured from China or
second hand market of western companies. However, these rigs are suitable for current work and if we compare
them with foreign rigs, they may be equal to the European rigs in case of function. There exist some other rigs with very advanced technology, but perhaps there is no need for advanced technology in the beginning of the work. For example, if you want to dig a 2000 meters well, you do not need to use a 2000 HP Rig; as a 1000 HP rig could start the job and base on the conditions and requirements, the rest of the operation should be decided accordingly.
It may not be cost effective for us to use a highly advanced rig which every parts of it are electronical and mechanical. Because these rigs may need 4 to 5 operators instead of the 20, so it may not be advisable to use them due to the community working conditions and unemployment in our society. In Iran there exist usual rigs used in the world that are accountable for our work. A number of NIDC rigs goes back to more than 30 years ago with a need to repair and maintenance. However, 25 rigs were procured from 2007 on. Therefore, the overhaul of the rigs is one of our basic needs. Machinery like draw-works, rotary table, mud pumps and top drive may need repair, while Caterpillar engines are mainly subject to general overhaul or reconstruction. The overhaul has begun last year and about 4 to 5 rigs have been repaired till now. We have a plan to overhaul 6 to 8 rigs on a yearly basis with financial support.
2.Considering the current market for drilling rig fleet in Iran, do you have any plans for purchasing new rigs?
We have planned to purchase new rigs in the recent years; however, the plan has been delayed due to sanctions in the recent year. The good news is that we have reestablished the negotiations with the sanctions gone. In the offshore section, we have plan to supply 5 new offshore rigs, which unfortunately has not been fulfilled due to lack of finance. Apart from that, we have held some tenders for manufacturing onshore rigs, out of which, 2 to 4 masts will be ready to use in near future.
3. In a two year vision, how do you see the future market outlook of the drilling industry?
From my point of view, I believe that it will be an excellent condition in Iran drilling market. Now that E&P projects
are officially started by Total, the market will face a boom in drilling by more and more long-term contracts.
Although, the political conditions may determine the slope, the overall view is a very positive one. It is obvious that in order to raise the production rate as per the official authorities, the drilling market needs to be highly focused on. All the companies who have enhanced their quality in the recent year, will not lose its market share in future.
By a proper investment, a larger number of rigs in Iran can be enabled. We have to enhance the drilling activities to maintain the current production and export level. This increase can be achieved through work over with coiled tubing or rigs in the suspended wells. Due to reservoir pressure drops, some wells need ESP or electric pumps to be brought back to production cycle.
Drilling industry of our country will prosper. At the same time, the quality issue has already been considered. If a
company enhances the quality of its work, it certainly expects very good capital markets.
4.As a reputable drilling company in Iran, do you have any plans to extend your market to regional countries?
There are ongoing negotiations with international companies as of now. The negotiation with foreign companies are mainly in several key areas: First, cooperation to participate in tenders and also collaboration in the execution of the work. Agreement to overhaul our drilling fleet is an example. Second, Knowledge management and technology transfer to enhance our company to prosperous future. Our improvement plans consist of training program for human resources, more interaction with major international companies, and enhancing performance especially i in turnkey projects. Promising results have been achieved till now but they still need more improvement. Most negotiating partners are European as many agreements have been signed with them. Third is the use of new technology in hardware and software engineering especially in turnkey projects.
5. What do you think the competitive advantages of NIDC are compared to other drilling companies active in Iran?
First, we own a great number of expert human resources who are highly skilled, highly educated and highly experienced. We are still trying to increase this capability Second, we have the acceptable number of services and equipment that reduces our costs. The early life of our fleet is almost finished and the present audit value of our drilling rigs is almost zero. These are the advantages that reduce the costs. The large number of rig fleet, and human resources, are the main competitive advantages for this company.
6. You company owns diversified drilling services in Iran. How do you evaluate your capabilities in this section?
Our company owns almost all the main technical services in drilling. Our auxiliary services are in an acceptable level quantitatively and cover almost all services. In terms of quality, there is a good condition, although some devices need reconstruction. We try to maintain our current market and plan to satisfy our clients and employers. We are actually able to perform integrated drilling services in big projects with high quality.