what does a workover rig do supplier

Rig means the vessel described in Recital (A) hereto and includes any share or interest therein and her engines, machinery, boats, tackle, outfit, spare gear, fuel, consumable or other stores, belongings and appurtenances whether on board or ashore and whether now owned or hereafter acquired (but excluding therefrom any leased equipment owned by third parties);

Oil well means any well which produces or appears capable of producing a ratio of less than six thousand (6,000) cubic feet of gas to each one (1) barrel of oil on the basis of the initial gas-oil ratio test.

Horizontal well means a well bore drilled laterally at an angle of at least eighty (80) degrees to the vertical or with a horizontal projection exceeding one hundred (100) feet measured from the initial point of penetration into the productive formation through the terminus of the lateral in the same common source of supply.

Associated Facilities means all associated track structures, over and under track structures, supports (including supports for equipment or items associated with the use of the Network), tunnels, bridges, train control systems, signalling systems, communication systems and associated plant, machinery and equipment from time to time but only to the extent that such assets are related to or connected with the Network but does not include any sidings or yards;

Compression Ignition Engine means an internal combustion engine with operating characteristics significantly similar to the theoretical diesel combustion cycle. The regulation of power by controlling fuel supply in lieu of a throttle is indicative of a compression ignition engine.

service well means a well drilled or completed for the purpose of supporting production in an existing field. Wells in this class are drilled for the following specific purposes: gas injection (natural gas, propane, butane or flue gas), water injection, steam injection, air injection, salt water disposal, water supply for injection, observation or injection for combustion.

Development Well means a well drilled inside the established limits of an oil or gas reservoir, or in close proximity to the edge of the reservoir, to the depth of a stratigraphic horizon known to be productive.

Pilot project means an initial short-term method to test or apply an innovation or concept related to the operation, management or design of a local detention facility pursuant to application to, and approval by, the Board.

Workover Rig is available for both onshore as well as offshore Workover purposes at affordable prices. There are a number of companies that manufacture the Workover Rig as well as Rig packages that are required for different kinds of drilling jobs and meet the standards that have been set by the American Petroleum Institute or the API. The Rig packages are shipped worldwide. The rigs are included other than the simple Workover and they include the following:

Workover Rig is known as the Workover the different types of rigs include the offshore and onshore Rig that range from 150 horsepower to 1000 horsepower. Workover rigs have a surface depth that is equipped with diesel engines and transmissions and is available from 8000 ft to 30000 ft. Workover rigs contain a full line of drilling packages. Rig takes into account the skid mounted drilling rigs and the ones that are trailer mounted. Workover skid mounted drilling rigs incorporate the diesel-electric AC/VFD or the DC/SCR drive rigs, mechanical drive rigs and the combination drive Rig that ranges from 1000 horsepower to 6000 horsepower; while the trailer mounted Rig ranges from 450 horsepower to 1000 horsepower.

A lot of Workover Rig uses the double telescopic mast with the help of a single mast and is operated by wide wheel base axels, high strength steel beam, low cross section tires, dual pipeline brakes as well as hydraulic assist steering for the Workover. Rig mast is a double section type and uses a telescopic mast for dual safety protection. The gear shift and throttle of the engine can be remote controlled.

Workover types of Rig are available in the form of the single drum as well as the double drum. The groove ensures the alignment of in place as well as for long life. The optional Workover accessories for the auxiliary brakes include air thrust disc type clutch, brakes for the braking of the main drum, forced water circulating cooling with the brake rims as well as the optional brakes. Workover rigs are centrally controlled with electricity. The other kinds of drilling equipment include drilling equipment, triplex mud pumps, well control equipment; solids control equipment, oil control tubular goods and quality equipment. Work over rigs run casing tools and clean outs inside and outside a hole already drilled.

Workover rigs, also called pulling unit rigs, are specialized oil rigs set up for inserting or pulling pipe tubing in and out of wells. Workover crews are called when an oil well has been drilled, is undergoing repair or is being retired, as indicated by Schlumberger.

These crews are relatively small compared to other rig crews and consist of tool pushers, operators or relief operators, derrick men and floormen or roughnecks. The average workover rig salary overall was ​$65,039​ as reported by Simply Hired in 2022. Available workover rig jobs and descriptions can be found on the Rigzone website.

The acting supervisor on a workover rig is called the tool pusher. The main task of a pusher is to hire, fire and supervise contracting work crews. When contractors have an issue on site, the first person they report concerns to is the tool pusher. Pushers need to have an intimate knowledge of how each and every part of a rig works, both individually and as an overall part of the drilling operation as a whole.

If equipment fails or needs to be reordered, the tool pusher talks with suppliers to get the right parts out on site with a minimum of downtime for the rig. The pusher is responsible for the overall safety of a rig. If the tool pusher has any safety concerns, he has the power to halt production until the concern is resolved.

The operator/relief operator is next in order of responsibility to the tool pusher on a workover rig. The main task of an operator is to control the crane and derrick that hauls pipe in and out of the bored well. In smaller crews, the operator is also the one who drives the rig truck. When laying pipe into a well, the operator directs the truck or derrick to the optimum spot next to the bore opening.

The operator then instructs the derrick hands and roughnecks where to place the bore pipe for easy access by the crane or by hand-loading methods. During a well breakdown or repair, the operator directs the crew hands in storage of extracted pipelines. Because the operators work most closely with derrick hands and roughnecks, they are typically responsible for selection and maintenance of their immediate workover rig crew.

In the pulling unit rig crew hierarchy, the derrick hands come after the operator/relief operators. The main responsibility of a derrick hand is everything that is above ground on the rig. During laying operations, derrick hands assist the operators/relief operators in inserting boring into the well. During repair or breakdown, they assist the operator in pulling pipe out of the well and storing it properly.

In between laying, derrick hands have other responsibilities as well, depending on the size of the crews. In smaller crews, Derrick hands also see to the maintenance of the rig-based electric and diesel generators necessary to power rig equipment.

At the bottom of the pulling unit rig crew in terms of seniority is the floorhand or roughneck. The main task of a roughneck is to perform any kind of tasks asked by either the derrick hand or the operator. These tasks can range from assisting with laying new pipe or removal of old tubing, general construction, to moving new equipment, such as generators. Most crew members on a work-about start their career as a floorhand or roughneck before working their way up to more senior positions.

It included Central Control System, Hydraulically Elevating System, Fluid Monitoring & Handling, and BOP etc. PLC automatic controlled operation. Truck Mounted, Trailer Mounted and Skid Mounted are also available, which are widely used for onshore and offshore operation.

The big difference between this type of flush-by rig and conventional flush-by unit is drawworks. Mechanical drawworks are adopted on ourflush-by rig.

Manufacturer of standard & mobile rigs & carriers for oilfield applications. Includes well servicing from 14,000 ft. to 22,000 ft., workovers from 10,000 ft. to 16,000 ft. & drilling from 6000 ft. to 10,000 ft. Specifications include brakes range from 28 in. dia. x 8 in. wide to 42 in. dia. x 12 in. wide, barrels from 12 3/4 in. x 38 in. to 18 in. x 43 in., chains from 1 1/4 in. to 1 3/4 in., clutches of 24 in. with single & 2 plate air friction outboards, shafts of 5 in. dia. to 6 1/2 in. dia. & gross weights from 63,200 lbs. to 115,000 lbs. Also includes forged steel, demountable options, mufflers with spark arrestors, dry type air cleaners, transmissions with torque converters, water splash brake cooling & up to 6 axles.

In order to solve low degree of work over automation, labor-intensive job dangerous, poor working environment issues, Shengji has developed a series of mechanical work over system, including workover automatic system, minor workover automatic system and snubbing operation equipment.

Oil well workover is a high-tech, high-risk work. The conventional oilfield workover rig has problems such complicated operating procedures and high labor intensity. Shengji, in cooperation with the Shengli Drilling Corporation, have designed an oilfield workover rig automation system.

The system includes double monkey board pipes ranging robot, bolted beam system, machine hand, power catwalk, power elevator, hydraulic chuck, power control and monitoring system. The system uses one-button automated operation. The operation only needs one driller, one wellhead operator and one patrol personnel.

The oilfield automatic workover rig has a high degree of automation adopting modular integration and advanced robot closed-loop control technology. It functions as self-diagnosis, leakage and short circuit protection and fault alarming, etc. It has remote monitoring capability.

The automatic workover rig greatly increases the automation of workover operations, reduces the number of operators, decreases workers’ labor intensity. The technology is advanced, safe and reliable.

A service rig is a mobile platform loaded with oil industry service equipment that can be driven long distances within the oil fields to service wells.

There are several specialized types of service rigs: the carrier, the pumptruck, the doghouse, a 5-ton equipment truck and several crew vehicles. The rigs usually travel in a convoy, because all of the component rigs are needed for proper oil well servicing. The crew use the equipment on the rigs to provide a variety of services, including completions, work-overs, abandonment"s, well maintenance, high-pressure and critical sour-well work and re-entry preparation.

The Rig, or Carrier, is a mobile truck with a derrick and a cab for one driver. The carrier can also be trailer-mounted, enabling it to be towed behind a prime mover. Traditionally, trailer-mounted service rigs are much larger and heavier, with greater capacities.

The Pumptruck has a large tank on the rear, and is used to pump fluid and store fluid from the well during different stages of the maintenance process. It is assembled using a series of pipes and operated with valves and pressure systems.

The Doghouse is a portable building used by the crew members to suit up, eat lunch, and assemble during meetings and breaks. It holds the communications and emergency equipment, a washroom, and has a storage space for inventory and tools. This space is referred to as the Light Plant, and in some occasion"s a tool room, the Light Plant contains a diesel generator to provide electricity for lights and equipment.

The 5 Ton is a large truck which carries tools and other equipment, including the B.O.P."s(blow-out preventer), tongs, a rod table, and extra pipe. It also pulls the doghouse from one location to the next.

Each service rig has a manager called a Toolpush, who orders and monitors supplies, monitors and records the progress of each job and schedules the crew"s time. At times there is also a representative present from the oil company whose wells are being serviced.

Service rig crew"s are often under the supervision of a Consultant who is contracted through said oil company and reviews safety and job tasks with the crew, and organizes the process of moving from each well and ensuring the

The automatic workover rig is a new type of wellhead operation automation equipment developed for the lifting and lowering of oil pipes (sucker rods) in small oil and water well repair operations.

The equipment refers to the basic actions of “lifting, turning, and throwing” in manual pipe and rod operations, and applies robot automation technology to realize automatic lifting and lowering of pipes (rods), automatic buckling (unloading), automatic pipe throwing, and self-loading and unloading of the whole machine.

The equipment is driven by an AC variable frequency motor, which has the advantages of low cost, easy management, and reduced environmental pollution compared with traditional diesel engine drive; using automated technical means, the operator in the control room can control all the actions of starting and lowering operations, which is truly realized The unmanned operation of the wellhead frees the operators from the traditional high-intensity, high-risk collaborative operation, and achieves the purpose of effectively reducing labor intensity, improving intrinsic safety and reducing construction costs.

The automatic workover rig has made major breakthroughs in key technologies such as unmanned automatic operation at the wellhead, automatic pipe and rod transfer, electro-hydraulic servo control, and man-machine synchronization control. Various performance indicators have been verified by a large number of field tests.

The new device has great advantages with its simple design, small volume and stable performance, do not occupy the wellhead artificial operation space, do not affect the artificial well control emergency, do not interfere with the wellhead evacuation and do not increase the moving vehicles and operation cost. Its operation speed is controllable and as nearly as manual operation. It is popular with the oilfield workers.

At present, although some oilfield workover operations have adopted some automatic equipment, the unmanned operation of the wellhead has been realized, which has greatly reduced the labor intensity of workers, improved the operating environment, and improved the safety factor. But the tubing cannot swing with the pipe pusher when working in windy weather, the pipe pusher cannot accurately align the tubing with the coupling, which affects the reliability and stability of the automated operation. At the same time, there are many equipment movement mechanisms, which are distributed around the wellhead, resulting in manual intervention in the operation space, especially in the wellhead emergency rescue process, which will affect the efficiency of emergency rescue.

For the above disadvantages, Sanjack Company provides an automatic wellhead operation device for oilfield workover operations, which mainly realizes the accurate alignment of tubing couplings, improves the reliability and stability of automated operations, and secondly, through innovative design and reasonable layout of the components of the workover platform, the platform operation space is increased, which is convenient for manual operation and wellhead rescue operations.

Fuselage, 2. Safety slips, 3. Tubing pusher, 4. Splash-proof coupler, 5. Hydraulic clamp, 6. Floating platform, 7. Coupling locator, 8. Pallet wheel mechanism, 9. Connection flange;

The automatic wellhead operation device for automatic workover operation adopts the principle of electro-permanent magnet suction pipe, and design a set of mechanism that can swing freely under its own gravity to achieve accurate alignment of the tubing.

This automatic wellhead operation device improves the reliability and stability of automated operations. At the same time, through the innovative design and reasonable layout of the components of the workover platform, the structure is compact and simple, which increases the platform operation space and facilitates manual operation and wellhead rescue operations. Accurate movement positioning achieves precise and reliable workover.

(1) This device is based on the power and lifting conditions of the existing workover rigs. Through the hydraulic control transformation of elevators and hydraulic clamps, the development of automatic positioning manipulators and manipulators, and the selection of pneumatic chucks, the workover workers can be far away from the wellhead. The completion of the lifting and lowering of the tubing operation, the construction speed is artificially controllable and can reach the level of manual operation, which greatly reduces the labor intensity of the workers, and reduces the various injuries faced by the workers at the wellhead of the station, which is generally welcomed by the workers on the spot.

(2) This device realizes the dual functions of unmanned operation or manned operation at the wellhead without occupying the manual operation space at the wellhead. Normally, the wellhead is not operated by the wellhead. When disassembling and assembling the Christmas tree and the blowout preventer, raising and lowering the sucker rod, loading and unloading downhole tools, performing blowout rescue, and carrying out well control exercises, it does not affect the cooperation of the wellhead.

(3) This device transforms the work of lifting and lowering the tubing from labor-intensive to knowledge-intensive, but the high degree of automation of all processes is not pursued in the research and development, because that will increase a lot of auxiliary equipment and investment, and the workload of operation and maintenance is large, and it is not suitable. The need for frequent moving and low-cost operation for minor repairs.

(4) After the two-person operation of the oil pipe is realized, the original wellhead personnel is trained as the driver, and the vehicle is operated in turn, which can further improve the work efficiency.

(5) After unmanned operation at the wellhead, the manipulator of the workover rig moves more. Therefore, simplifying operations and improving work efficiency through automation and intelligence is the next development direction of this device.

Dublin, May 30, 2019 (GLOBE NEWSWIRE) -- The "Global Workover Rigs Market 2019-2023" report has been added to ResearchAndMarkets.com"s offering.

The growing demand for oil and natural gas will drive the growth of the global workover rigs market during the predicted period. The global consumption of natural gas has seen a significant rise due to the increasing use of natural gas as a fuel. With the increase in the demand for oil and natural gas, companies will try to enhance oil and gas production to meet the demand.

Oil and gas companies can increase the production in two ways. One way is to drill new oil and gas wells, while another way is to increase production from existing less-producing oil and gas wells. Workover rigs are used in both cases. Therefore, the increase in the demand for oil and natural gas will spur the need for workover rigs during well E&P activities such as intervention and completion and drive the growth of the global workover rigs market during the forecast period.

The increase in oil and gas investments, as well as government support for oil and gas E&P activities, will give rise to the need for intervention and completion services. where workover rigs are required. These factors are supporting the growth of the global drilling rig count. which indicates the growth of the global workover rigs market during the forecast period.

Crude oil prices have encountered large variations over the years, which have a negative impact on the profitability and performance of upstream oil and gas companies. A large number of drilling rigs were shut down, and many employees were laid off due to the variations in global crude of prices. E&P projects are executed only when the revenue generated is high enough for upstream companies to make profits. Thus, the uncertainty and fluctuations in global crude oil prices will hamper investments in E&P projects in both onshore and offshore fields, which will, in turn, impact the global workover rigs market during the forecast period.

The market appears to be moderately fragmented. The presence of several companies including TOKAIRIKA and Valeo makes competitive environment quite intense. Factors such as the increase in global drilling rig count and the growing demand for oil and natural gas, will provide considerable growth opportunities considerable growth opportunities to workover rigs manufacturers.

DRILLMEC Spa, Nabors Industries Ltd., National Oilwell Varco Inc., Precision Drilling Corp. Schlumberger Ltd., and Yantai Jereh Oilfield Services Group Co. Ltd. are some of the major companies covered in this report.

High quality cost-effective diesel drilling onshore large load workover rig,The rig structure is compact and well designed, highly integrated, and optimized to save working space. The power system is a hydraulic+ mechanical type with high comprehensive efficiency. A class II or self-propelled type chassis can be adopted to meet the various requirements of the end-users.

The mast is front-open type, with a single section or double-section structure, hydraulic raising and hydraulic telescoping, or mechanical telescoping.

Band brake or hydraulic disc brake can be applied as the main brake of the drawworks. The water cooling thrust plate pneumatic brake or water brake can be used as an auxiliary brake.

The drill floor is a twin-body telescopic type or a parallelogram structure, both of which are convenient for installation and transportation. The dimension and height of the drill floor can be designed according to the end-user’s requirements.

Super capacitor energy storing dual—power workover rig mainly consists of Diesel engine power unit which is made up of Diesel engine and Hydraulic transmission box, Electric power unit which is made up of Frequency conversion motor and Mechanical transmission box, Transfer case, Angle gear box, Drawworks, Mast assembly, Super capacitor energy storing and control system, Hydraulic and Pneumatic control system, Voltage transformer, Power connection box, MCC control cabinet, Frequency conversion cabinet, Electric air compressor, Electric hydraulic pump station etc.

The power of Diesel engine is used for the heavy load workover job of workover rig, such as running and jam release etc. The power of Frequency conversion motor is used for the normal trip—up and down operation

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The following is a list of seasonal work gear worn by drilling rig workers. Savanna supplies rig employees with coveralls, hard hat, safety glasses & impact gloves (1 pair).

Drilling rig crews are generally made up of six (6) people: Rig Manager, Driller, Derrickhand, Motorhand, Floorhand, and Leasehand. Each crew works 12 hours shifts as the rig operates 24 hours per day, and each position is vital to the operation of the rig.

Work in the oil and gas services industry is seasonal. Because of the weight of rigs and their equipment, and the remote location of wells, these locations are often only accessible when the ground conditions can tolerate heavy loads. Therefore, wells are typically drilled and serviced in the winter when the ground is frozen solid, or in the summer, when the ground has thawed and dried sufficiently. During the spring and fall, when the ground is in a transitional state, it is too soft to move equipment on and easily damaged. For this reason, provincial governments implement “road bans” prohibiting heavy loads from operating in certain areas. During this time, rig work is slower, and many rigs are shut down and their crews sent home. Be prepared to be off for anywhere from 6 to 12 weeks without pay during this time. However, rigs that are shut down are usually in need of maintenance, and there may be opportunities for employees who would like to help in this regard. Employees may be eligible for Employment Insurance benefits during seasonal shutdowns.

To work on a drilling rig, you must be able to get to and from all of your work locations.  As drilling often occurs in remote areas, having reliable transportation is considered mandatory for non-camp locations. Drilling rigs commonly operate 24 hours per day, 7 days per week with either three crews working 8 hour shifts or two crews working 12-hour shifts. Most often day crews and night crews will alternate weekly, so each crew has a chance to work during both the day and night. Most crews will work 14 days straight with 7 days off in-between. The typical living situation while working falls into three categories: Non-Camp, Full Camp and Texas Camp.

Non-Camp: When the rig site is near a town, non-camp conditions normally apply. Crews will stay in hotel rooms and receive a per day living allowance for food and accommodation. The living allowance is paid out on your pay cheque based on days worked, therefore you will need to be able to pay for your food and accommodation out of your own pocket.

Full-Camp: When a rig site is in a remote location, crews may stay in a full camp. In a full-camp all food and full accommodation is provided. Once at the camp, the crew travels to and from the rig in the crew truck. Almost all camp work is available in the winter only.

Texas Camp: These camps are typically located nearby the rig location.  Crews are responsible for supplying their own bedding, cooking supplies, groceries and toiletries.  While staying at a texas camp, a daily allowance is provided for food and toiletries.  The living allowance is paid out on your pay cheque based on days worked, therefore you will need to be able to pay for your food and toiletries out of your own pocket.

Savanna employees are paid every two weeks via direct bank deposit.  Savanna’s compensation package includes company group health, dental and disability coverage including paramedical coverage (acupuncturist, chiropractor, massage therapist, naturopath physiotherapist and much more).  Savanna also offers a competitive and rewarding retirement savings plan.

Once you have completed your orientation, you will immediately receive any other necessary training. This involves Workplace Hazardous Materials Information System (WHMIS) and Transportation of Dangerous Goods (TDG), along with an in-depth General Safety Orientation. This training is mandatory and provided by Savanna at no cost to the employee. Job-related, hands on training is conducted in the field through Savanna’s Rig Mentoring Program.

Some well locations have sour gas (Hydrogen Sulfide or H2S) present which is extremely dangerous. All employees are required to possess a valid H2S Alive certificate regardless of whether they are working on a sour gas well. This can be obtained by signing up for and completing a one-day (8 hour) course.

Courses are available at various locations across the province. For more information, contact Energy Safety (formerly Enform) at (780) 955-7770 or visit www.enform.ca or Leduc Safety Service at (780) 955 3300 or visit www.leducsafety.com. The cost of the course is usually between $130 and $150 plus tax, and the certification is valid for three years.

While it is not mandatory to have this certification, each service rig crew is required to have two members who are certified in Standard First Aid with CPR level C. Therefore, obtaining a certification beforehand is a great way to improve your chances of being hired.

Savanna is committed to providing a safe, productive and respectful work environment.  As such, Savanna has Policies in place to ensure the protection of our employees, contractors, the pubic and the environment.  All Savanna employees are required to acknowledge and follow the policies at all times.

By connecting with the best workover rigs manufacturers and suppliers you can grow your business and satisfy your clients with top-notch products and services. At ExportHub you’ll find global workover rigs suppliers and manufacturers ready to serve your demands. Regardless of where you are located, you can get your products manufactured easily without setting foot out of your national border. As a leading B2B platform, we highlight the following attributes of the listed manufacturers and suppliers.

Still wondering where to start? Allow us to help you out! Call us at +1-214-306-7737 or fill out a short form on our Contact us page and a representative will get back to you in no time.

In this whitepaper, the focus in on analyzing the underlying supply risk for Indian E&P operators in hiring Variable Frequency Drive (VFD) AC Rigs due to sudden increase in demand in the Indian market. Also identified are the reasons behind the VFD rig shortage from E&P operator’s perspective. The whitepaper analyzes the impact that an E&P operator faces due to rig shortage and suggests suitable sourcing strategies for the E&P companies to overcome the VFD rig shortage.

VFD rigs are AC-driven high power rigs with horse power varying from 1500 HP to 3000 HP. These rigs are used for high depth wells and in hilly terrain regions where normal Silicon Controlled Rectifier (SCR) rigs cannot be used. VFD rigs help advanced drilling technologies such as pad drilling, directional drilling and horizontal drilling. VFD rigs come with high level of automation that involves automated drilling pipe handling, drill pipe connection and auto drilling. With increase in demand for directional drilling and mature oil fields in India, the demand for VFD rigs is increasing. These rigs help in achieving higher cost savings for E&P operators through a highly-efficient variable power system.

Indian work-over market is estimated to be worth $75.88 million. With nine suppliers, India has always been a supply-surplus market with easy availability of readily stacked rigs to pursue drilling. However, things changed in 2017 as industry faced the first ever VFD rig shortage.

Among the various capacity of VFD rigs, 2000 HP is the most sought by E&P operators. With deeper wells and high pressure wells, the demand for 2000 HP is increasing.

Marginal field auction, increase in demand for directional drilling and horizontal drilling, and increased drilling in high terrain fields are seen as the key reasons for shortage of VFD rigs.

Recently, Ministry of Petroleum and Natural Gas (MOPNG) under Indian Government offered small and marginal oil & gas fields under its new Hydrocarbon Exploration & Licensing policy with an aim to bolster the domestic production. Fields awarded under the auction were previously explored by big players. However, development of these fields was abandoned as it became unviable for companies. As the import of crude oil for domestic consumption increased, government sought to reactivate these fields in a step to boost the domestic production.

Therefore, MOPNG came with the idea of auctioning these fields. To increase the participation from oil companies and in a bid to invite new players to the industry, requirements to bid for the field were relaxed. As a result, several new entrants to the oil & gas industry won the bid to explore these marginal fields and develop them.

While the fields awarded are explored earlier and wells drilled, they are completed with proper installation of well heads for pursuing development activities later. Therefore, the focus for smaller E&P companies will be on servicing these drilled wells to reduce the exploration risk. Hence, demand of work-over rig is set to increase.

Directional drilling involves drilling of wells with a controlled direction and deviation of wellbore to a determined target for hydrocarbons. Whereas horizontal drilling is chosen for slanted wells in difficult terrain where drilling in not possible in the exact location of hydrocarbons. Both these drilling types use power-controlled directional drilling motors that help in deviating the wells as required. Therefore, the need arises for AC-driven VFD rigs to perform directional and horizontal drilling.

Indian states of Assam, Tripura and Arunachal Pradesh have some of the high terrain hydrocarbons fields. These fields have well depth of 3000 meters and more to reach the gas reservoir. Latest discovery of gas fields in Tripura has increased the drilling activity in the state. Given the high terrain, oil companies prefer to go with single-pad multi-well drill that helps to reduce the need for individual field development plan. With strong preference for directional drilling, E&P companies hire only high-power VFD rigs to manage the drill program.

Oil & gas exploration involves huge investment with high level of risk. Delays in hiring the rigs can be costlier for the E&P operator as the production is impacted directly.

Risk of increase in day rates – With increasing demand for workover rigs, E&P companies are rushing on to seal the workover rig contracts to avoid risking the rig availability. As an impact, day rates of 2000 HP rigs have gone up by $1,000 per day in 2017 in comparison to 2016. 2000 HP workover rigs attracted an average day rate of $21,000. Even though oil prices stayed lower over last 12 months, the day rates for workover have reached $22,000 owing to the increased demand.

Delayed production risk – E&P operators have to adhere to timelines defined by the DGH for field exploration, drilling, development and production. Therefore, lead time for workover rig in managing the production schedule. Delays in procuring workover drilling and associated equipment can delay the well intervention plans of operators. Especially, operators with single or smaller oil fields cannot afford to have any delays as it can increase the non-productive time impacting the production.

Budget risk– As most of the new E&P operators with smaller fields have constrained budget, it is essential to manage the drilling, completion and production schedule. With prevailing lower oil prices, any delays in operation or reservoir complication can completely squeeze their budget.

Government procurement guidelines– Under the exploration licensing policy, E&P operators must follow certain procurement rules while procuring service equipment such as rigs. When there is a rig shortage with the suppliers, there is a risk for E&P to find at least three bidders for the contracts.

Though risks cannot be eliminated completely, they can be minimized. By choosing the appropriate sourcing strategy and contract type, E&P operators can safeguard themselves from risks due to workover rig shortage.

Risk of increase in day rate for VFD rigs can be negated by E&P operators with long term contracts, typically for three years. In most workover contracts, contract duration is the deciding factor in finalizing the day rates. Longer terms are found more attractive by the rig owners as it assures the rig owner with consistent revenue. Therefore, it is essential for E&P operators to make use of negotiation to leverage for lower day rates.

From the operators’ perspective, long term workover rig contracts give a cost saving of 15-20 percent. Moreover, it eliminates the risk of rig unavailability which is likely to incur a significant cost for the operators.

While majority of the Indian workover rig suppliers buy rigs outrightly from the Original Equipment Manufacturers, few suppliers have their own fabrication unit. With fabrication and assembly unit, these suppliers cater to the demand for E&P operators with a lead time of 9-12 months. In such cases when the need for workover is immediate and for a longer duration, E&P companies can prefer to have joint ventures with the rig OEM to have a secured rig supply for longer duration. Skipping the supplier stage in this JV can help E&P operators in reducing the day rates for VFD rig.

Real time example– Recently, Saudi Aramco entered into a joint venture with offshore drilling rig supplier for jack up rigs. The joint venture will initially own seven offshore rigs while four additional rigs will be added in future. By entering into the JV, Aramco has ensured it supply chain for drilling rigs. This eliminates the risk of rig unavailability and ensures that production schedule is met with planned timelines.

When E&P operators get into a JV, the rig fleet comes under the operators. This will help E&P operators to mitigate the risk arising due to the government procurement rules which require a minimum of three bidders for a contract.

Given the utilization rate of 55 percent for VFD rigs, rig sharing is one of the options to ensure procurement of VFD rigs to avoid the supply risk. In long term contracts, there is a provision of ‘Assignment’ which is a novation of agreement allowing transfer of rig from one operator to another operator. Under rig sharing agreement, E&P operator hires rig from the supplier and shares it with another operator to maximize the efficiency. Rig sharing is usually done in two different forms. Under type 1, single oil company contracts a drilling rig and shares the same with different subsidiaries holding the exploration license in the same field or other field. Under type 2, multiple operators together contract a workover rig. Under this type, the operators share the crews, supplies and equipment.

Rig hiring suits smaller E&P companies with budget constraints or limited operations, typically single field operators. When two or more operators contract a workover rig, the shortage of rig is mitigated without affecting the well intervention operations at a lower cost.

Choosing a suitable sourcing strategy for contracting a VFD rig is highly dependent on the factors such as field size, number of exploration licenses, license duration and financial strength of the E&P operator. For large E&P operators with multiple fields and good cash flow, joint venture with an OEM can be the most suitable sourcing strategy. For E&P operators with constrained budgets, limited operations and operating in single field or in marginal field, rig sharing can the ideal sourcing strategy for hiring workover rig. Long term contracts are suitable for E&P operators with longer exploration license as the need for VFD rigs will be for a longer duration.

A wide variety of xj150 workover rig options are available to you, You can also choose from diesel, electric xj150 workover rig,As well as from energy & mining, construction works , and manufacturing plant. And whether xj150 workover rig is provided, {2}, or {3}.

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