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Business丨GWDC plans expansion in BRI economies

CHINADAILY · 公众号 · 时评 · 2024-12-03 15:06

正文

The second drilling unit of CNPC Greatwall Drilling Co (GWDC), a Beijing-based State-owned enterprise, plans to deploy more resources and offer customized solutions in economies participating in the Belt and Road Initiative in order to expedite its pace of internationalization, a senior executive said.

In the first 11 months of this year, the company — a unit of State-owned China National Petroleum Corp — spudded 61 wells and completed 54 wells in international markets, primarily in economies involved in the BRI, with a total drilling depth of 168,100 meters.

▲ An engineer from the second drilling unit of CNPC Greatwall Drilling Co instructs a local worker at an oilfield in Azerbaijan. Photo provided to China Daily

Highlighting that these efforts will notably support local economic growth and energy security, Li Hong, head of the international business branch at the second drilling unit of GWDC, said that by tapping into international markets, particularly resource-rich regions, Chinese drilling companies can significantly boost their revenues and diversify their market base.

The second drilling unit of GWDC worked in close collaboration with its client, Abu Dhabi National Oil Co (ADNOC), a state-owned oil company in the United Arab Emirates, to achieve a record-breaking completion cycle of 23 days for the FL49 well in the UAE in late October.

This set a new benchmark for the fastest single-well construction in the UAE's Falah oil and gas field, breaking records for both the highest single-day footage and the shortest third-section drilling cycle.

The FL49 well is a three-section directional well with an actual drilling cycle of 20 days and a completion cycle of 23 days. The project encountered several major challenges, including a high risk of leakage in the second section, the potential for leakage-to-kick transitions in the third section and elevated hydrogen sulfide content.

To deal with these difficulties, the second drilling unit of GWDC maintained sustained real-time communication with ADNOC, meticulously refining operational processes in advance and allocating tasks to ensure seamless workflow integration.

"This remarkable speed improvement is the result of continuous investment and innovation in drilling technology. We hope this achievement serves not just as a single-well success but as a foundation for future projects," said Li.

The successful drilling and record-breaking performance of the FL49 well demonstrate the comprehensive technical capabilities of GWDC in the field of drilling technology, laying a solid foundation for developing an unconventional oilfield in the early phase, he added.

The going global business of Chinese companies is undoubtedly a significant force. They have evolved from "capital going abroad" and "products going abroad" to the stage of "capability going abroad," said Vianne Cai, head of marketing solutions for China at LinkedIn, a California-based professional networking platform provider.

However, they need to participate in the global value chain division at a more advanced level, establish more resilient and stable global value chains, and demonstrate higher corporate responsibility and sustainable development capabilities, she said.

China's nonfinancial outbound direct investment surged 10.6 percent year-on-year to $115.83 billion between January and October, data from the Ministry of Commerce showed.

In the same period, Chinese companies invested $26.65 billion nonfinancial capital in countries and regions participating in the BRI, up 3 percent from the previous year.

With an annual drilling capacity of 1.7 million meters, the service scope of the second drilling unit of the GWDC primarily includes drilling, pre-drilling engineering and well completion operations, capable of handling various types of drilling and well-servicing projects for oil, natural gas, and coal-bed methane, as well as geothermal and water resources, up to 9,000 meters in depth.

The company has built a market presence in 11 countries, including Algeria, Kuwait, Saudi Arabia and the UAE.

Reporter: Zhong Nan