workover rig diagram made in china
Founded in 1969, RG Petro-Machinery Group Co., Ltd. is the manufacturing base of Chinese major technical equipment and fast move petroleum drilling rigs. At present, it has 12 subsidiaries with 9 production and supporting branches. Its main products include 12 series of more than 200 varieties, such as truck-mounted drilling rigs, skid-mounted drilling rigs, trailer-mounted drilling rigs, workover rigs, oilwell logging equipment, and integrated automatic well service equipment.RG Group has established a complete scientific and technical research and development system. It has academician workstation, post-doctoral scientific research workstation, and the National Petroleum Truck-mounted Equipment Standardization Work Department. It is responsible for hosting in drafting the national petroleum and petrochemical industry truck-mounted equipment standards. It has a nationally recognized enterprise technology center and metrology inspection laboratory, and has strong machinery fabrication and system integration capabilities. The company has passed ISO9001 and API Q1 international quality system and been authorized to use API 4F, 7K, and 8C monograms since 1990s.RG provides the oil and gas drilling equipment and all-round services according to the demands of the customers globally, including drilling services, equipment maintenance services, engineering services, inspection services, and equipment leasing etc. RG Petro-Machinery Group Co., Ltd. makes the great efforts to provide the first class equipment and services for the oil and gas industry of China and the world.
This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
The automatic operation equipment for minor workover is mainly composed of a wellhead operation device, hydraulic elevator, pipe and rod transmission and arrangement device and electro-hydraulic control system.
The device adopts the structural form of dispersing the functional modules and integrated installation on the workover rig: with the hydraulic tong, manipulator and anti splash snap device set on the derrick of the workover rig, which can expand and rotate, and the safety slip is installed above the BOP.
The device only needs to install safety slips, which realizes rapid installation and migration and shortens the auxiliary working time. The device has the function of moving back and forth, left and right, which is convenient to align the wellhead. The height of the hydraulic tong is adjustable and can adapt to the wellhead with different heights. Hoisting equipment and special transport vehicles are not required for the installation and removal of the device.
The main electric control box can be installed on the operation vehicle or integrated into the modular wellhead operation device. The make-up torque of various oil pipes is set on the touch screen to realize automatic make-up and break-down. Equipped with video monitoring, process prompt, safety alarm, etc. The control system has a perfect action interlocking function to ensure the safety and reliability of the workover operation process. All of the electric cabinets, sensors, connectors meet the requirement of Explosion-proof on field.
Their exceptional mobility, stability, and ease of operation are the outcome of our extensive experience in the design and production of mobile drilling rigs.
Belonging to the same family, Sovonex™ service rigs comprise many of the technological advantages that result in smooth operation and make the life of our customers’ easier:
Wide selection: At our production facility in China we design and develop workover rigs for service depths ranging from 1,600 m to 8,500 m (5,250 ft-27,900 ft), and workover depths from 2,000 m to 9,000 m (6,600 ft-30,000 ft) for 2 7/8” DP.
Full API coverage: The different components of our well-servicing rigs are manufactured to the following API standards:Steel structures, such as the mast: API Spec 4F
Highly maneuverable : Sovonex™ mobile drilling rigs and self-propelled workover rigs possess excellent driving properties in the desert, mountain, and other impassable terrains.
Reduced NPT: The mast is erected hydraulically to reduce time for rig up and increase safety. Likewise, all rig components have been designed to allow for fast assembly and disassembly.
With every service rig, we send technical staff to our customer to provide first-hand technical support. The engineer responsible for the rig design is always part of the service crew.
PRODUCT DESCRIPTION This is one of our best selling product. A kit of Catterpillar and Allison transmission provides steady and powerful output to enable the 250 rig can actually handle much heav...
Product name: 5000m truck mounted drilling rig/workover rig Advantages: 1.truck mounted drilling rigs manufacturer 2.Approved API&ISO certificate 3.Max Nominal drilling depth:5...
PRODUCT DESCRIPTION XJ450 (80t) workover rig is capable of workover depth up to 4,500m and service depth up to 5,500m. Equipped with rotary table, swivel and drilling tools, it can also perform a...
This workover rig is mainly used for drilling service in 800m-4000m(4-1/2 DP) depth oil, water well and coal gas well.(1) The design and manufacturing for the rig stick to this principle that is...
The slant-well workover rigs* This kind of workover rigs are designed and manufactured in accordance with API Spec Q14F7k8C and technical standards of RP500,GB3826.1GB3836.2 GB7258,SY5202 as we...
The drilling rig is mainly used for Workover service of 5500m(2 7/8" oil tubing) deep of oil and water well,drilling 1500m(4 1/2" DP) deep oil-water and coal seam gas well,also used for deep...
350HP workover rig 350HP workover rigXJ350 workover rig is mainly used for shallow well workover, oil testing, fishing and pump check operations. It is equipped with a lifting system and a rotary...
PRODUCT DESCRIPTION The XJ350 workover rig is our best designed and developed product. It perfectly couples Caterpillar enginer with allison transmission to provide a steady energy output and exc...
PRODUCT DESCRIPTION As the pioneer of research and manufacture on Live Well Workover Rig in China, Tonghua Petro Machinery just announced the brand new Live Well Workover Rig----5th Generation wi...
PRODUCT DESCRIPTIONAs one of the best designed and manufacturered products of our workover rig series along with 50 year history of workover rig manufacture history, XJ750 adopts a complete U.S standa...
PRODUCT DESCRIPTION The XJ350 workover rig is our best designed and developed product. It perfectly couples Caterpillar enginer with allison transmission to provide a steady energy output and...
PRODUCT DESCRIPTION XJ450 (80t) workover rig is capable of workover depth up to 4,500m and service depth up to 5,500m. Equipped with rotary table, swivel and drilling tools, it can also perf...
The slant-well workover rigs * This kind of workover rigs are designed and manufactured in accordance with API Spec Q14F7k8C and technical standards of RP500,GB3826.1GB3836.2 GB7258,SY5202 as w...
On 2 May 2014, a Chinese company"s HYSY 981 drilling rig started its drilling operation inside the contiguous zone of China"s Xisha Islands (see Annex 1/5 for the locations of operation) for the purpose of oil and gas exploration. With the first phase of the operation completed, the second phase began on 27 May. The two locations of operation are 17 nautical miles from both the Zhongjian Island of China"s Xisha Islands and the baseline of the territorial waters of Xisha Islands, yet approximately 133 to 156 nautical miles away from the coast of the Vietnamese mainland.
The above-mentioned actions of the Vietnamese side were serious infringements upon China"s sovereignty, sovereign rights and jurisdiction, grave threats to the safety of Chinese personnel and the HYSY 981 drilling rig, and gross violations of the relevant international laws, including the Charter of the United Nations, the 1982 UN Convention on the Law of the Sea (UNCLOS) and 1988 Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation and the Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms Located on the Continental Shelf. Such actions also undermined the freedom and safety of navigation in these waters, and damaged peace and stability in the region.
China wants good relations with Vietnam, but there are principles that China cannot abandon. The channel of communication between China and Vietnam is open. China urges Vietnam to bear in mind the overall interests of the bilateral relations and peace and stability in the South China Sea, respect China"s sovereignty, sovereign rights and jurisdiction, immediately stop all forms of disruptions of the Chinese operation and withdraw all vessels and personnel from the site, so as to ease the tension and restore tranquility at sea as early as possible. China will continue its effort to communicate with Vietnam with a view to properly addressing the current situation.
Chinese offshore drilling contractor China Oilfield Service Ltd has chartered a jack-up workover rig to carry out well service operations for CNOOC Ltd in the western part of the South China Sea.
The charter of the Guozhan unit is the latest effort by SinoOcean Offshore Assets Management to secure employment for offshore rigs built by Chinese yards but abandoned by their original owners.
SinoOcean is a government entity set up in 2019 with a mission to “consolidate, optimise, remodify and manage” offshore rigs, vessels and other assets ordered but stranded in China following the oil market downturn between 2014 and 2016.
Chinese authorities plan to position their first homegrown semi-submersible oil rig in a deep-water field in the disputed South China Sea to show rivals how far it’s willing to go for energy security and possibly to expand its political clout, observers believe.
Vietnam’s claims come closest to the Chinese gas field and Hanoi is unlikely to protest if the rig stays on site without expanding, said Alexander Vuving, professor at the Daniel K. Inouye Asia-Pacific Center for Security Studies in Hawaii. But in 2014 a Chinese rig positioned in disputed waters touched off boat ramming and deadly anti-China riots in Vietnam. That sort of flap could pop up again, Vuving said.
SCOPE: To provide a representative basis for determining the availability, capability, dependability, reliability of Stability Systems on Land Based Work-Over Rigs and the recommended practices and procedures for their safe use.
The diagram illustrated in Figure 2-2 is typical of the recommendations set forth by the American Petroleum Institute, The International Association of Drilling Contractors and The Association of Oilwell Servicing Contractors. It should be noted that API (The American Petroleum Institute) is in the process of re-assessing some of these criteria. This information will be addressed later in this document.
The Figure 2-3 shows a typical location preparation plan. The load bearing area (cross hatched area on diagram) should consist of, as a minimum, compacted sand or gravel which requires picking for removal. The area should be level and drained and provide a minimum 8000 psf bearing capacity (API Spec. 4E).
The rig location area may grade away from the well bore along centerline II at a maximum drop of 1:20. The cross grades, parallel to centerline I, should be level. The area shall provide a minimum bearing capacity of 6000 psf.
Using the chart: An anchor in Zone "A" located a horizontal distance of 70 feet from the "Well Head" would require an anchor of what minimum holding capacity? On the chart move along the horizontal legend from left to right until you reach 70 feet. At this juncture proceed vertical until you intersect the curved line for Zone "A", now follow the intersecting horizontal line, left toward the vertical legend. We have now determined that the minimum holding capacity for the anchor, at this precise location, is 20,000 pounds.
Standing at the "Well Head", with the well bore immediately to your back, proceed North (in direction monkey board is facing) 24 paces. (The pace length is not as important as the numerical relationship of the units and the consistency of the unit length. The method will work with any unit of length as long as the same unit is used throughout.) Place a stake or other marker at this location (Bench Reference). Turn West 90 degrees and proceed forward 10 paces. At this location turn your body so that the front portion of your anatomy is approximately parallel to the radial of the guy anchor. If the northwest guy anchor is forward of your right shoulder and the southeast guy anchor is aft to the rear of your left shoulder, it can then be presumed that the radial angles are within acceptable parameters. Repeat the procedure from the bench reference, this time to the east, proceed ten paces. In this orientation the northeast anchor should be forward of the left shoulder and the southwest anchor should be aft of the right shoulder.
A survey of 13 drilling contractors operation 193 drilling rigs in northern Canada and Alaska indicated that there is a wide range of experience and operating practices under extremely low temperature conditions. While there is very little precise information available, there have been a sizeable number of failures in portable masts while in the lowering or raising process in winter. Thus the exposure to low temperature failures focuses on mast lowering and raising operations. Based on reports, however, this operation has been accomplished successfully in temperatures as low as -50 degrees F. While the risk may be considerably greater because of the change in physical characteristics of steel at low temperatures, operators may carry on "normal" operations even at extremely low temperatures. This may be accomplished by a program of closely controlled inspection procedures and careful handling and operation. This should reduce damage and impact loading during raising and lowering operations. At the present, there seems to be no widely accepted or soundly supported basis for establishing a critical temperature for limiting the use of these oilfield structures. Experience in the operation of trucks and other heavy equipment exposed to impact forces indicates that -40 degrees F may be the threshold of the temperature range at which the risk of structural failure may increase rapidly. Precautionary measures should be more rigidly practiced at this point. The following recommended practices are included for reference:
If maintained to these tolerances the sags will indicate a pretension of 1000 pounds for crown to ground guywires and 500 pounds for tubing board guywires. this is based on the use of 5/8 inch, 6x19, or 6x37 class, regular lay, ips, IWRC wire rope, installed according to the rigging guidelines set forth in chart depicted in Figure 5-5
With the new Recommended Practice there are also slight changes in the long existing rectangular guying pattern. The following Diagram, Figure 5-3, is an illustration of the current API thinking.
The drawing on the following page, Figure 5-4, (SAME AS FIGURE 4-4) is another illustration of the continuing evolution of Rig Stability System engineering and design. It represents the latest API thinking relative to planing and preparing a Rig Stability System.
CAUTION: SOLE EMPHASIS SHOULD NOT BE PLACED ON PULL TESTING OR ALTERNATIVES TO PULL TESTING AS THIS MEASURES ONLY ONE COMPONENT OF THE RIG STABILITY SYSTEM.
The rig contractor should be responsible for the following: a. Insuring that anchor capacities are verified and that anchor spacing and capacity is suitable for the mast guying pattern and anticipated loading.
b. Records of pull testing or records of other methods used to verify temporary anchor capacity should be retained by the rig contractor until the job is complete and the guy wires have been removed from the anchors. The records should indicate the capacity of each anchor, the date of verification, name and phone number of the party responsible for verification, and the soil condition at the time of verification.
OUT OF AN ABUNDANCE OF CAUTION IT IS EXTREMELY IMPORTANT TO POINT OUT THAT THE PREVENTION OF RIG UPSET IS DIRECTLY DEPENDENT ON THE TOTAL INTEGRITY OF THE RIG STABILIZATION SYSTEM. THE SYSTEM INCLUDES ALL OF ITS COMPONENTS AND IS ONLY AS SOUND AS ITS WEAKEST MEMBER.
Our research has concluded, that the latest State-of-the-Art in RIG STABILIZATION is to be found in the pending American Petroleum Institute, Recommended Practice for MAINTENANCE and USE of DRILLING and WELL SERVICING STRUCTURES.
On May 1, 2014, Vietnam detected the Haiyang Shiyou 981 (HYSY 981) oil rig and three Chinese oil and gas service ships heading south from China’s Hainan Province. When the China National Offshore Oil Corporation (CNOOC) first launched this $1 billion deep-water drilling rig in 2012, the company’s chairman had lauded its virtues as a “strategic weapon” for Beijing in the South China Sea. This was the first time, however, that the HYSY 981 had actually moved into Vietnamese-claimed waters. One diplomat told reporters that this prospect had “been one of [Hanoi’s] worst fears” since the rig’s maiden voyage, even if “the timing caught us by surprise.”
The small flotilla was spotted near Triton Island in the Paracel Islands, which Beijing occupies but Hanoi and Taipei also claim. By the afternoon of May 2, it settled 17 nautical miles south of Triton. The CNOOC rig straddled two hydrocarbon blocks that Hanoi had previously demarcated but not yet developed. China’s Maritime Safety Administration (MSA) announced that the platform would conduct exploratory drilling in the area until August 15. Foreign vessels were prohibited from venturing within one nautical mile of the rig.
HYSY 981 was situated 120 nautical miles east of Vietnam’s Ly Son Island and 180 nautical miles south of Hainan. Because of cramped local geography, the rig thus fell within the maximum hypothetical entitlements of both China and Vietnam under the 1982 United Nations Convention on the Law of the Sea. Beijing and Hanoi still have not deconflicted their overlapping rights to exploit the region’s seabed and fishery resources.
The CNOOC rig was on the Vietnamese side of a median line drawn between mainland Vietnam and China—a common option for delimiting maritime boundaries (indicated by the horizontal white line above). Yet any settlement would also need to consider whether some of the Paracel Islands merit their own independent rights to a continental shelf. It is doubtful that Hanoi or an international court would award these tiny features equal weight (as depicted in red) to major coastlines when calculating a new median line. On the other hand, the 25 and 50 percent formulas used in the 2000 Sino-Vietnamese Tonkin Gulf Agreement might put the oil rig back in China’s zone. This would also require Vietnam to recognize Chinese sovereignty over the Paracels, which is an entirely separate territorial dispute. Given this complex legal situation, observers noted that China’s rig was in disputed waters.
Vietnamese Coast Guard and Fisheries Resources Surveillance (VFRS) forces were immediately dispatched to intercept HYSY 981. Their mission, in the words of a navy official, was to make a “show of force” to prevent the oil rig from “establishing a fixed position.” China faced six Vietnamese vessels attempting to disrupt the operation of the rig the following day. Afterwards, the number of Chinese escorts jumped quickly to 40 ships, including China Coast Guard (CCG), civilian fishing, and probably Chinese navy ships.
China arrayed its forces in protective rings to head off the hostile ships, a tactic it had used in clashes with Hanoi since at least 2007. Violent collisions occurred almost immediately. Beijing claimed the Vietnamese deliberately rammed Chinese vessels, with video showing a VFRS cutter striking two CCG ships. Hanoi charged Beijing with similar aggression that in one case ruptured a Vietnamese vessel’s hull. China expanded its defensive perimeter from one to three nautical miles on May 4 to better shield the oil rig.
Meanwhile, standoffs and collisions continued. Hanoi reported the presence of 60 Chinese vessels as well as “dozens of aircraft” overhead by May 7. Vietnam itself had 29 armed naval and law enforcement ships deployed. Damaged vessels were repaired at sea so they could remain engaged. China soon enlarged its security cordon around the rig—which had lowered its drilling equipment—to 5 nautical miles and then once more to 10-15 nautical miles.
Nevertheless, on May 27 Chinese tugboats pulled HYSY 981 to a new location northeast of Triton Island. The MSA explained that a second phase of oil and gas exploration was commencing. But after a high-level visit by Chinese state councilor Yang Jiechi to Hanoi on June 18, several Chinese vessels departed and the remaining force became less assertive. The oil rig’s drilling equipment was also visibly retracted.
On July 15, CNOOC announced the rig’s withdrawal a full month ahead of schedule. Beijing publicly asserted that the operation was concluded “in accordance with relevant company’s plan” and had “nothing to do with any external factor.” Vietnamese leaders hailed the apparent Chinese retreat as a victory and thanked the international community for its support. HYSY 981 has returned to the northwestern portion of the South China Sea several times since 2014, but has not yet again crossed over to Vietnam’s side of the disputed median line.
Referring to accompanying drawing 1, the schematic diagram of the utility model net electric power workover rig energy storage control system.The utility model is a kind of
Net electric power workover rig energy storage control system, mainly include well site power network 1, well site transformer 2, dynamical system 3, work operations list
Electricity is after well site transformer 2, access workover rig dynamical system 3.The dynamical system 3 provides rotation for net electric power workover rig and moved
Power, installed in workover rig voluntarily on chassis;The work operations unit 4 is used for the rountrip for completing workover rig, will can move
The rotary power that Force system is exported is changed into straight line and removes power, and by workover rig, voluntarily chassis carries, after in-site installation
Rise and transfer the course of work, workover rig is periodicity power demand in the course of work, and this course of work can be divided into three behaviour
One.In three operating procedures, raising process workover rig power output is maximum(I.e. energy consumption is maximum), shackle, decentralization process are not required to
The utility model utilizes the circulation work characteristic of workover rig, in the non-activity duration of shackle and decentralization(Account for work
Zhejiang Zhigao Machinery Co., Ltd. is a leading professional company in the field of mining and construction equipment manufacturing. We provide a wide range of drill rigs, air compressors, construction equipment, parts and consultancy services. ZEGA is well recognized in Chinese industry and rapidly expanding to the International market. We have earned our well-regarded reputation and business strength through our emphasis on providing continuous investments in new research and technology to advance product quality and meet International Standards of Excellence. Our Global Services & Support Center is composed of
Near-term outlook characterized by cautious optimism, with China, Russia and Middle East expected to drive bulk of growth in rig and well counts out to 2025
The past two years have been tough for the international onshore land drilling market, from Asia Pacific to Europe to the Middle East to Latin America. Going into 2022 and looking out to 2025, however, things are looking up, according to Westwood Global Energy Group’s 2021 World Land Drilling Market Forecast. The firm is forecasting increases in most relevant metrics, including rig count, utilization rate and number of wells drilled.
By 2025, Westwood expects operators will be drilling an estimated 50,200 onshore wells globally, up from just 38,500 in 2020 and approaching the 52,000 wells drilled in 2019. This is expected to drive global land rig demand up to 4,560 rigs by 2025. That’s a nearly 30% increase compared with a demand of 3,530 rigs in 2021 and nearly matching the 4,570-rig demand level seen in 2019.
At the same time, total rig supply is expected to remain flat, at around 9,000, through 2025. This sets the scene for improvements in utilization rates, which is forecast to improve from 39% in 2020 to 50% in 2025.
Looking at specific markets, the Asia Pacific and Eastern Europe/Former Soviet Union (FSU) regions are expected to be the primary drivers in demand growth for land rigs over the next four years. Westwood projects an estimated annual average of 1,430 operational rigs, defined as rigs either drilling or in the process of mobilizing to a field, in Asia Pacific from 2021-2025. This is more than any other region in the group’s analysis. Eastern Europe/FSU is estimated to average 1,130 rigs over the same time period, followed by North America at 890, the Middle East and North Africa (MENA) region at 560, Latin America at 170, Sub-Saharan Africa at 30 and Western Europe at 10.
In terms of the broader oil and gas markets, supply and demand is expected to remain tightly balanced over the remainder of 2021 and into 2022, according to Westwood. However, the uncertainty of pandemic-induced demand shocks will likely continue to loom large for years to come, keeping a ceiling on any upside in commodity prices and leading E&P companies to maintain their focus on capital discipline. While Brent had risen above $78/bbl as of 30 September, Westwood’s rig demand forecast is underpinned by an assumption of $60/bbl in its base case scenario for 2022-2025.
Not only is the Asia Pacific region forecasted to have the highest land rig demand from 2022-2025, but it will also have the highest rig utilization rate, at around 66%. China will make up the bulk of rig activity in this region. Westwood estimates the current number of operational land rigs in China at around 1,100, with a total rig supply of 1,500. Those figures should rise to 1,300 rigs operating out of a 1,600-rig fleet by 2025. NOCs China National Petroleum Company(CNPC) and Sinopec currently account for 95% of the identified rigs within the country, and that number is not expected to change significantly through 2025.
However, there could be rapid changes in the makeup of the Chinese land rig fleet in the coming years, as the country ramps up development of its unconventional resources. Currently, China has a smaller share of high-horsepower rigs compared with other regions measured in Westwood’s report. Of the 1,500 rigs there now, only 51% are high-horsepower (greater than 1,499 hp), while 36% are medium horsepower (1,000-1,499 hp) and 13% are low horsepower (less than 1,000 hp). As a comparison, 87% of operational rigs in MENA and 79% in North America are high-horsepower rigs.
Land rig utilization in China is expected to reach 80% by 2025, well above the global average of 50%, Mr Wilby said. The increase will be driven primarily by government mandates to increase domestic production, particularly in its unconventional sector. China’s latest Five Year Plan, released in February, specifically cited unconventional E&P as part of its efforts to reduce reliance on oil imports. In March, the country’s Ministry of Finance and the State Administration of Taxation also extended its 30% tax deduction for shale gas producers through 2023.
Outside of China, India and Australia are other areas of note in the Asia Pacific region. India is expected to go from 85 rigs operating and 45% utilization in 2021 to 110 rigs and 60% utilization in 2025. The number of wells drilled is forecast to average 500-600 per year over that same time frame. Westwood said it is optimistic about the growth potential in India primarily because the country has set “ambitious” production targets. In 2019, ONGC announced a goal of doubling its production by 2040. This will likely lead the NOC to be more aggressive in farming out marginal fields to other companies to help build production.
For Australia, which is still dealing with stringent travel restrictions related to the COVID-19 pandemic, Westwood’s outlook is more conservative. The forecast calls for rig count to go up from 25 in 2021 to 30 in 2025 and for wells drilled to go up from 540 in 610 in the same time span. Rig utilization rate will average 24% over the next four years. Those numbers are roughly similar to the country’s averages from 2016-2020.
In Eastern Europe/FSU, drilling activity will continue to be dominated by Russia. To meet export commitments, the country will need to sustain high levels of drilling on its mature fields. From 2021-2025, Russia is expected to average 1,000 rigs in operation and to drill 6,400 wells annually, making up around 88% of the region’s total expected rig count of 1,130 and 7,300 well count total. Rig utilization in the country is expected to average 70%. As in China, much of Russia’s drilling activity is expected to come from its NOCs.
Aside from Russia, Westwood also pointed to Kazakhstan as a country of note. While activity is on a much smaller scale than in Russia, rig demand in Kazakhstan is expected to double from 25 rigs in 2021 to 50 rigs in 2025. This growth is due, in large part, to Chevron’s planned expansion of the Tengiz field in the northwestern part of the country. The $45 billion expansion, which Chevron is set to finish in 2024, will boost the field’s oil production by 260,000 bbl/day and gas production capacity by 960 million cu ft/day.
Western Europe will be much less of a factor in the global land drilling mix. Westwood estimates the region to average just 10 rigs a year and 76 wells drilled from 2021 to 2025, with rig utilization at approximately 10%.
In the MENA region, the Gulf Cooperation Council (GCC) states are expected to drive the bulk of land drilling activity in the coming years. Rig demand here is forecasted to increase from 300 in 2021 to 380 in 2025, with utilization increasing from 55% to 70% in the same time period. Total wells drilled is expected to increase from 2,000 this year to around 2,500 by 2025.
Of the six countries in the GCC, Mr Wilby said, it will be Kuwait, Oman and Saudi Arabia that have the most potential for “significant” increases in onshore rig demand. This presumes that OPEC+ follows through on its plan, announced this summer, to end production cuts by September 2022. The cuts were enacted in 2020 following the oil price downturn.
In Saudi Arabia specifically, Westwood expects to see a significant boost in activity. The country is forecast to see a demand for 150 land rigs by 2025, a 36% increase over 2021 levels. However, the bulk of that increase will likely not come until after 2022, according to Westwood. This is partly due to the timing of the OPEC+ cuts ending, but Mr Wilby also noted the projected 2024 startup of production at Jafurah, the largest natural gas field in the country, with an estimated 200 trillion cu ft of reserves.
For Kuwait, Westwood is forecasting an increase in rig utilization, from 55% in 2021 to 70% by 2025. Wells drilled are expected to reach 600 by that year, which would be the country’s highest activity level since 2017. These figures presume the startup of Phases 4 and 5 of the Jurassic Gas project in northern Kuwait, which could add 300 million cu ft/day of gas production. A projected startup date has not been announced, but Westwood anticipates the facilities starting up in the mid-2020s. Phases 4 and 5 involve the construction of production facilities for handling and treating gas – when they are brought on stream, they will require additional rigs and wells to produce feedstock from the field.
Over in Oman, where mature fields require sustained drilling activity to maintain production levels, rig utilization has already rebounded to 70% this year, after falling from 80% in 2019 to 65% in 2020. By 2025, that number is expected to rise to 80% again, with 85 rigs in operation.
The Latin America region is not expected to see significant increases in its land drilling activity over the next four years. Westwood forecast an average of 170 operational rigs per year through 2025, while wells drilled will increase from 1,600 in 2021 to 2,350 in 2025. Rig utilization is expected to increase from 20% to 30% in the same time period.
Mexico is forecast to see modest increases over the forecast period, moving from 25 rigs, 140 wells drilled and 20% utilization in 2021 to 30 rigs, 170 wells drilled and 25% utilization in 2025. The country has laid out ambitious plans, announcing in 2019 a 25-year, $10 billion commitment to develop onshore and offshore exploration resources. However, PEMEX was mired in $115 billion in debt as of Q2 2021, which Mr Wilby said would make significant investments difficult in the near term.
Westwood’s forecast was much more optimistic when it came to Argentina, which is expected to see the number of wells drilled nearly double, from around 500 in 2021 to nearly 1,000 wells in 2025. Rig count would also increase in the same time span, from 50 to 80, as would rig utilization, from 30% to 50%, thanks to increased activity from YPF in the Vaca Muerta shale.
Colombia may also see a spike in activity. Westwood has forecast rig count in the country to increase from 25 in 2021 to 40 in 2025, utilization to increase from 15% to 25% and wells drilled to increase from 440 to 720. There is significant upside potential to this, as well, should any unconventional developments progress.
Armando Zamora, President of the ANH, said in March this year that he expects a reversal of the fracking ban in 2022 when the country modifies its environmental regulations. This could obviously lead to a boost in unconventional drilling, although Mr Wilby said drilling contractors most likely would not feel any upside until later in the 2020s. Westwood forecasts the country will have 700 wells drilled in 2025, which is similar to 2019 levels. Rig utilization, which was below 10% in 2020, should rise to 20% in 2025.