Press: Russian Oilfield Service Companies Are Ready to Meet the Growing Needs of the Industry

Oil production in Russia is kept at a high level, and domestic oilfield service enterprises have enough work to do. One of the major players in this market, NaftaGaz, reached record drilling figures last year. How it was possible to achieve this result and what the prospects for the future are, the Chairman of the Board of Directors of the company Tural Kerimov told Rossiyskaya Gazeta.

– Tural Arifovich, what is happening in the Russian oilfield service market today, given that oil production has increased, and foreign companies have stopped their work in our country? Have Russian companies managed to increase the number of orders?

– The oilfield service market is recovering after the reduction in oil production due to the pandemic and the 2020 OPEC+ deal. Today, oil companies need more “hands” than they have on the market, but this is not due to the departure of foreign companies. Moreover, under other names or in connection with obligations to complete the previously concluded contracts, the main Western oilfield services have stayed on the market in one way or another. Therefore, I explain the significant increase in the scope of work of NaftaGaz by completely different reasons. We are a young private company that competes with industry leaders, so we have to apply more effective management and a professional approach in each area as an advantage, and we have to be more mobile in decision-making. We take seriously the implementation of technological projects, such as Digital Drilling, in our activities. Of course, the qualification of specialists is important for us - we are demanding in this aspect and choose the best employees. 10 years from the first drilling rig to the best drilling contractor of Gazpromneft PJSC in 2022 is a serious path that our team can be proud of.

– What are the company's results in 2022?

“Last year, our production program was the highest since its foundation. We drilled almost a million meters. It is 25 percent more than in the previous period. Revenue increased by 45 percent, profit by 15 percent. The result is impressive, but it was not easy to achieve it due to a sharp increase in the volume of orders in the conditions of a shortage of manpower, which arose due to the departure of part of the drilling crews. It is no secret that a large number of Ukrainian specialists were employed in oilfield services. Therefore, the industry suddenly faced a serious problem of personnel shortage. And it is impossible to solve it quickly. Oil workers do not have a talent pool.

We provided employees for newly launched drilling rigs, but we had to work with the qualifications that were available at the moment. In this regard, the Naftagaz-Development training center created at the drilling division of the company helped us a lot.

– It would seem that there should be a lot of people who want to work in the oil industry?

– Yes, but everyone wants to be an “office oil worker.” And it is quite a different thing to work in the conditions of the Far North. Unfortunately, for a number of years, young people have not been informed that the hard work of an oil worker, a shift worker is an honorable and worthy men’s profession, that almost all current heads of oil companies began their careers with this. At the same time, those young people who want to work as drillers cannot get to the field immediately after training, since this requires three years of work experience. Solving the problem of popularizing the profession and attracting specialists to drilling rigs is a long-term task for both market participants and relevant ministries.
For this purpose, we have developed the Green Helmet program which is designed for young people. As I have already mentioned, there is the Naftagaz-Development training center, which trains all employees of our company, improves the level of qualification, and provides additional skills. Students can study both in-person and remotely. Today, the center implements programs not only for the company's personnel, but also for employees of other enterprises in the specialties that are in demand in Yamal.
– How many employees do you have in total and how do you find new ones?

“In total, we employ about 2,500 specialists. Most of them are in drilling and rigging crews. We are looking for people on the market, trying to offer more favorable conditions. Today, NaftaGaz has one of the highest salaries in oilfield services. For example, a drilling foreman receives about 180 thousand rubles net for 15 days of shift, excluding additional bonuses for high performance. We invest in the modernization of equipment and we purchase new machines. In terms of living conditions, we try to make sure that the drillers do not think about any household problems, but can do their work with high quality. We take care of all these issues and plan to constantly improve the social and living conditions of the team.

“Last year, Naftagaz production program reached record levels”

If we talk about maintaining the loyalty of the employees, especially since the oilfield services personnel market, as I have already said, is very competitive, we have two main advantages here - stability and respect for each person. We listen to our colleagues, we are constantly engaged in a dialogue, and we meet with drilling crews. Any employee can ask a question or tell about their idea, problem, task to any manager, who is obliged to answer and show their concern. I'm not saying that everything is perfect, that there are no difficulties - they exist, as in any team and in any family. But we try to work on it.

– What is the scope of NaftaGaz investment program?

“Over the past 7 years, we have invested 10 billion rubles in our fixed assets - we have purchased new drilling rigs and upgraded the existing ones. Today, the average age of drilling rigs is 12 years, and by 2025 we plan to reduce this figure to 5 years. We also purchase drilling tools, pumping equipment, specialized transport, invest in the development of production support bases, and are going to open our own drill pipe repair shop. This year, we plan to invest a total of 3.2 billion rubles.

– You mentioned the digitalization of drilling, what is it?

“We have developed an automated drilling system that optimizes the well construction process. It allows you to increase production efficiency, minimize the human factor and improve financial performance by reducing costs and drilling time. At the same time, we did not replace a human worker, but only facilitated the work of our employees. Previously, the drillers determined the load on the bit themselves, taking into account various factors, but now it is done by the program. It allows you to drill without accidents and increase production safety.

“Naftagaz-Development training center improves the level of qualification of employees and gives them new skills”

The system includes a single digital platform, automatic speed maintenance, a module for surface oscillation of the drill string, a module for reducing rotation/damping irregularities, an automatic system for feeding the bit and maintaining the specified parameters of the drilling mode, and a system for selecting the optimal drilling mode according to MSE algorithms. Today, such systems are installed at all NaftaGaz facilities. The results are an increase in the mechanical drilling speed by 22 percent, a reduction in the well construction time by 10 percent, which is converted into money for our customers - the drilling company and all other services have to spend less time on site and the customer can switch to the operation of the well earlier.

“Today, a lot of attention is paid to the social responsibility of business. What is NaftaGaz doing in this field?
– In the summer of last year, we signed a cooperation agreement with the administration of the Yamalo-Nenets Autonomous Okrug, the region where our company operates. One of the first joint projects was the development of the concept of the “Mammoth Chamber” by the Cultural Center for Bone-Carving Art. We also support craftsmen and crafts via the All-Russian Decorative Art Museum, where I am a member of the Board of Trustees. Last year, NaftaGaz became an official partner of the product design competition “Invented and Made in Russia”, in which designers from all over the country participated.
In March, we launched another project in cooperation with the Department of Health of the Yamalo-Nenets Autonomous Okrug: we launched the Corporate Health program. Its goal is to make disease prevention a norm of life for our employees. After all, at the early stages of the disease, the probability of curing it is many times higher. Today, we are implementing the first module concerning the prevention of cardiovascular diseases. Our employees will be examined by doctors throughout the year, who will give them their recommendations and monitor the way they are followed.
The second module is participation in the project “Reproductive health of the population of the Yamalo-Nenets Autonomous Okrug”, which takes place in the Yamalo-Nenets district within the framework of the national project “Demography.” Since 93 percent of NaftaGaz employees are men, we gratefully accepted the offer of the region's leaders to become a pilot enterprise of the program.
We are implementing a charity program in Noyabrsk, where the main offices of NaftaGaz production facilities are located, and we are in direct contact with the city mayor's office in order to understand who really needs our support.
- What is NaftaGaz planning for this year, what tasks are supposed to be solved?
After summing up the results of last year, we understand that “a lot of achievements” is good, but the growth of production outstrips the growth of professional competencies. The goal of this year's business plan is a 20 percent increase. Therefore, it was decided to declare 2023 the Year of Efficiency and focus on personnel training, on changing the approach to the execution of many business processes, and on optimizing management. All employees of NaftaGaz have been given the task of working on themselves to grow as professionals. Each of us is very ambitious. I can say this for myself and every driller. Therefore, I have no doubt that the goal will be reached.

Rossiyskaya Gazeta. Special issue: FUEL AND ENERGY COMPLEX, NO. 88(9033)