China-based oil equipment supplier Kerui Group signs contract with Rosneft to increase output from fracturing
MOSCOW, July 3, 2017 /PRNewswire/ — Kerui Group, a Chinese supplier of equipment for oil fields and deposits, recently won a three-year contract on a large project to increase the output from hydraulic fracturing in Nyagan, involving the construction of Model 2000 fracturing trucks. The contract is valued at USD 60 million. As of June 16, 2017, the group had completed delivery of the first lot of fracturing equipment to Nizhevartovsk and completed construction of a fracturing facility comprised of 41 floors spread across 19 wells, with the inspection pass rate on the installation and build out of the equipment at each well surpassing 99 percent.
During his visit to China in June 2016, Russian President Vladimir Putin witnessed the signing of the strategic cooperation memorandum between Kerui Group and Rosneft. The signing of the agreement for the fracturing project marked another milestone in the cooperation between the two firms. Ding Guo, the executive at Kerui who is heading up the project, explained that given the aim of launching comprehensive localized services that fully meet customer expectations, over the last few years, Kerui Group successively established four service centers in Moscow, Nizhevartovsk, Ufa and Irkutsk and built a professional team comprised of local employees whose mission is to increase output from hydraulic fracturing projects, allowing Kerui to compete with the world’s best known oil service companies in the Russian market.
The fracturing equipment provided by Kerui Group has several unique features, including the ability to deliver high pressure (70 MPa), large displacement (5 cubic meters/minute) and a large construction area (larger than 1,500 square meters). The equipment can fully meet needs of Rosneft’s multi-layer project to increase oil output, as well as the technological needs when building out the facilities needed for large-scale projects, whether they be a multi-layer or a sectional fracturing facility. Kerui Group is scheduled to kick off expansions of their coiled tubing, well drilling, well cementation and nitrogen production businesses during the second half of the year and is expected to complete construction of eight fracturing facilities in Russia over the next five years.
Over the last several years, Kerui Group has partnered with companies and jointly completed projects in several countries targeted by the One Belt, One Road initiative, the Chinese government’s program to expand economic and trade ties across the Euro-Asian landmass, including Russia, Kazakhstan and Uzbekistan, covering a wide variety of projects, including oil and gas exploration, drilling, output enhancement and oil refining. As the Chinese government continues to advance the One Belt, One Road strategy, the high-quality equipment, advanced technological services and integrated high-performance solutions provided by Kerui Group will strongly support and drive cost savings for its global customers, while optimizing efforts to increase efficiencies, build reserves and enhance output.