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Pars Oil & Gas Company announces private sector should play a role in drilling

Monday, Dec 10, 2012

Iranian minister of petroleum says private sector should actively participate in proving oil and gas drilling rigs.

Addressing here on Sunday at a meeting on the ways of boosting efficiency in drilling sector, Rostam Qasemi said: Drilling in offshore sector requires more expensive technologies and equipment, an issue that oil industry has succeeded to take great steps forward.

Referring to the role of boosting efficiency in drilling sector on falling production costs, Qasemi noted that when oil and gas fields getting older the cost of drilling goes up simultaneously while deployment of state-of- the-art technologies in drilling sector boosts efficiency.

He went on to say that at present oil industry needed 100 onshore drilling rigs adding contractors should actively participate in manufacturing or importing drilling rigs in order to realize the fifth five year development plan targets on rising oil production to 5.2 million barrels per day.

‘In recent years National Iranian Drilling Company (NIDC) has played a valuable role in meeting oil industry needs to onshore drilling rigs but these days there is a good environment for private sector to participate in development and construction of drilling rigs’, Qasemi told the meeting.

He expressed hope private sector’s presence in building drilling rigs to create a more competitive environment resulting in meeting oil industry needs.

Stressing on importance of quickness, price and quality, Qasemi noted that daily cost of hiring a drilling rig stands respectively at 150 to 160 thousand dollars and 40 thousand dollars in offshore and onshore sectors.

At present it takes 100 days and even more to drill an oil well in onshore sector while drilling in offshore sector takes more time, the official said adding the time for drilling in offshore sector should come down to 45 to 60 days, compatible with world standards.

‘If we succeed to exploit a well one month earlier, not only we have been able to boost efficiency but we have succeeded to bring down production cost’, Qasemi said.

Underlining the importance of deploying skilled and trained workforce in drilling operations, he stressed on using experiences of experts who are out of the industry as well as updated know-how.

Currently we own 20 drilling rigs while two years ago the industry owned just one of two drilling rigs, the official said adding at present there are 110 to 120 onshore and offshore drilling rigs across the country.

Elsewhere in his remarks Qasemi stressed on enhancing oil and gas recovery stating it is necessary more wells to be drilled which in itself requires deployment of new technologies.

He referred to lack of enough drilling rigs in the country as a hurdle in the way of enhancing oil recovery adding despite rising the number of drilling rigs in recent years the country needs more rigs in order to realize its oil and gas production targets under the fifth five year development plan.

Source: Pars Oil & Gas Company

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