In early July, Baker Hughes GE Rig Count made public data on operating drilling rigs. In June, 193 machines were involved in Europe, 144 of them worked on shore and 112 produced gas. Just as last month Ukraine ranks first with 89 drilling rigs, which is 5 more than a month earlier.
As we announced in the previous issue of the Oil and Gas of Ukraine, we offer more detailed answers of Roman Opimakh, Executive Director of AGPU, about inclusion of Ukraine in the international index of drilling rigs.
- Do you know how the statistics of this ranking of operating drilling rigs is formed? As we see, there are some differences in the calculations by Newfolk company compared to Baker
Hughes GE Rig Count. What are the criteria to include drilling rigs in this ranking?
Baker Hughes uses the world common canons with some regional peculiarities. The list of operating rigs in Europe includes facilities that directly drill, which bits are below ground. Thus, the overhauls, which involve sidetracking, are also subject to calculations. At the same time, the statistics does not include drilling rigs, which are under mobilization or in a working order, but not in use for various reasons.
- When did you start to advance the issue of including Ukraine in this ranking? How did the international company meet your initiative and what did ultimately help make a positive decision?
The index is a well-known barometer of the industry activity, thus is widely used by analysts around the world to make sectoral and economic forecasts. When we failed to find Ukraine on the RigCount map, we decided to correct this historical injustice, which was the reason for the lack of the adequate competent information about our market. It was clear that this would not be a simple task, since BakerHughes was never represented in Ukraine, while the scale could surprise not only Europe, but the whole professional world. I would remind you that the analysis pointed out that every Europe’s second rig operates in Ukraine, which is very breaking news.
Thanks to Ukrgazvydobuvannya’s ties, which at that time negotiated with an American company about strategic cooperation, last summer the Association officially contacted the office in Edinburgh, then in Houston and held several conference meetings with the Baker Hughes team. According to the forms received, the Association requested 15 oil and gas companies, they account for 98% of domestic gas and oil production, later - for additional verification, the questionnaire covered also many drilling companies that perform these works. For over six months, the monthly data were subject to separate analyses by the Baker Hughes Ukrainian office and eventually the information was recognized as such that complies with the standards. In my opinion, however, the key element of success was that the Association proved itself as a responsible, competent and consistent partner able to implement ambitious projects.
- What the effect Ukraine’s inclusion in the Baker Hughes GE Rig Count has for the domestic gas market?
Not to exaggerate, this is a historic event. The entire industry will experience its positive effects. The whole world, by the way, like many Ukrainian specialists, had no idea of the true scale of the Ukrainian service market, which accounts for 83 drilling rigs operating on a monthly basis, while in next consecutive country - 20. It evidences the huge potential and capacity of the market, taking into account the state of a large part of the internal fleet still to be modernized. Therefore, such a global recognition opens up Ukraine's way to the transfer of modern technologies and advanced industrial practices, and also should facilitate the establishment of mutually beneficial cooperation of foreign companies with the Ukrainian service enterprises.
