25 Feb 2019 16:56

Rosneft share in Eurasia Drilling order book falls from 14% to 6%

MOSCOW. Feb 25 (Interfax) - Rosneft's share in the order book of Eurasia Drilling Company (EDC) fell from 14% in 2017 to 6% in 2018, the company said in materials.

Thus, Rosneft's share of orders fell to 2016 levels.

Eurasia Drilling announced its intention to reduce the share of Rosneft orders in its order book in early 2014. The company said the decision was prompted by Rosneft's request that that it be given a discount on drilling works. Furthermore, EDC noted that Rosneft is implementing a strategy aimed at creating its own oil field services business, which makes it possible for the oil giant to independently provide itself with the necessary volume of drilling and services. As a result, Rosneft's share in the EDC order book fell from 24% to 0.13%.

According to Rosneft data, the company currently carries out over half of its drilling operations, or over 6,000 kilometers of drilling, via its own services division - RN-Drilling.

Gazprom Neft's share in EDC's overall drilling as of the end of 2018 stood at 26% compared with 24% in 2017, while Lukoil's share rose from 60% to 67%.

Overall, EDC's share of onshore drilling works in 2018 fell from 16% to 12%. As of the end of 2018, the company owned 159 drilling units.