Russian Oil & Gas Equipment and Services

Permneftemashremont, OJSC


Operation as oil and gas industry supplier

1.
1. Date of commencement of operation as a supplier of the oil and gas industry

Since 1965 OJSC “Permneftemashremont” supplies equipment and spares for oil and gas well drilling.
Since 2002 OJSC “Permneftemashremont” supplies and performs maintenance of drilling equipment (screw downhole motors and turbodrills) of its own manufacture.
Key customers: NK “Rosneft”, OJSC “Gazpromneft”, OJSC “Surgutneftegaz”, OJSC “NGK “Slavneft”, LLC “Drilling Company “Eurasia”, OJSC “Tatneft”, OJSC “Ukrneft”, TNK-BP and other companies in West Siberia, Ural, Povolzhie, Far East and other regions of Russia and CIS.

2.
2. Main types of products (services) for the oil and gas industry

Type of product (service) Sales volume, rubles
2005 2006 2007 2008 (forecast)
Hydraulic screw downhole motors 90 000 000160 000 000180 000 000
Turbodrills 90 000 00060 000 00080 000 000
Spares and accessories 50 000 00080 000 000140 000 000

3.
3. The most competitive products (services) and benefits they offer

The most competitive products of OJSC “Permneftemashremont” are screw downhole motors with profiled power sections. Profiled power section is a new generation power section of enhanced reliability that substantially increases power characteristics of the downhole motor by 50-100% and improves penetration rate. Screw downhole motor with a profiled power section is the solution for increasingly demanding drilling conditions that is tailored to fit the needs of the drillers for at least 15-20 years. OJSC “Permneftemashremont” is Russia’s first and only company to design profiled power sections and manufacture screw downhole motors with such power sections. Apart from OJSC “Permneftemashremont”, only three US companies manufacture profiled power sections: Robbins&Myers, Halliburton and Baker Hughes. Power sections of OJSC “Permneftemashremont” are more reliable, 4-5 times cheaper than foreign-made ones.

Main advantages of profiled power sections:
-30-100% improvement of downhole motor power characteristics,
-50-100% penetration rate increase,
-3 times increase of motor service life (minimum time between overhauls – 250 hours),
- Smaller size power sections can be used to provide the same power output and penetration rate as with longer sections,
- Smaller size screw downhole motors can be used to increase deviation rate during directional drilling,
- PDC bits can be used with weight on bit of up to 30 tons (downhole motors size 172, 195 and 240) to increase penetration rate,
-improved economic efficiency of bits through reduced round-trip operations.

4.
Permits for use of the products. Certificate number, date of issue and certificate issuing authority

Certificate of compliance ¹ ROSS RU.MSh01.V00550 from 27.11.2006 for screw downhole motors, including motors with profiled stators (TU 366425-00147074-001-98, large-scale production), certification agency “Tekhnosert” ROSS RU.0001.11MSh01 LLC “NPO Gorneftemash”.
Certificate of compliance ¹ ROSS RU.MSh01.V00551 from 27.11.2006 for turbodrills (TU 26-02-367-87, large-scale production), certification agency “Tekhnosert” ROSS RU.0001.11MSh01 LLC “NPO Gorneftemash”.
Certificate of compliance ¹ ROSS RU.MSh01.V00552 from 27.11.2006 for turbodrills-deflectors (TU 26-02-809-78, large-scale production), certification agency “Tekhnosert” ROSS RU.0001.11MSh01 LLC “NPO Gorneftemash”.

5.
Major oil and gas industry contracts received over the past five years. Equipment supplied under the contracts and customer names

OJSC “Gazpromneft” (formerly known as Sibneft): turbodrills and spares, 180 million rubles
OJSC “NK “Rosneft” – turbodrills, screw downhole motors and spares, 120 million rubles
OJSC “Surgutneftegaz” – turbodrills and spares, 100 million rubles
OJSC “Ukrnafta” - turbodrills, screw downhole motors and spares, 440 million rubles
OJSC “Chernomorneftegaz” – turbodrills, screw downhole motors and spares, 360 million rubles

6.
Experience of supplying products (services) to foreign customers over the last five years. Types of products (services), export markets and local projects where the company participated

Ukraine, OJSC “Ukrnafta” and OJSC “Chernomorneftegaz”: since 2003 to date – supply of screw downhole motors, turbodrills and spares.

7.
Customer feedback process and after-sales service

Customer feedback is handled by the customer support service that comprises two departments: customer relations department and service maintenance department.
The customer relations department deals with sales and rent of drilling equipment and provides contract follow-up including coordination of terms and conditions to execution control.
The service maintenance department provides technical support of drilling equipment sales and rent, including engineering support, methodical assistance during startup and operation, warranty and post-warranty maintenance.
Head of the customer support service is deputy general director for marketing Andrey Popov, telephone: +7 (34273) 5-07-95,
Head of the customer relations department: Natalia Ismagilova, telephone: +7 (34273) 5-07-97.
Head of the service maintenance department: Yury Stepanov, telephone: +7 (34273) 5-07-96.

8.
Major competitors and their products (services)

Screw downhole motors with profiled power section:
1. Robins&Myers Inc. (USA)
2. Halliburton (USA)
3. Baker Hughes (USA)

Ordinary screw downhole motors:
1. LLC “VNIIBT-Drilling Tools”
2. LLC “Firm “Radius-Servis”
3. Mobile Drilling Systems.

9.
Main suppliers of equipment and materials

1. OJSC “Neftebur”, Moscow
2. CJSC “Elkam-Neftemash”, Perm.
3. Chaikovsky Plant RTD, Chaikovsky city

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Phone: +7 (495) 514-44-68, 514-58-56