Land Rig Upgrade Project for PEMEX

Oil equipment industry is a strategic industry directly related to the development of oil and gas resources and affects national energy stability and economic security, and oil drilling rigs are an important part of the oil equipment industry. The development of the oil and gas industry requires rapid progress of land drilling rigs, especially in the context of low oil prices, the oil and gas industry needs new efficiency points to promote the large-scale transformation of land wells, ultimately achieving improved economic benefits and efficiency of oil fields and promoting the production of new blocks.


On the one hand, after years of development in the oil and gas industry, with the growth of service life and the continuous development of rig technology, drilling rigs are increasingly exposed to some problems and can no longer meet the requirements of modern drilling technology for drilling equipment. It has become more and more urgent to upgrade the automation of the drilling rigs in service to improve the technical equipment level of the rigs and adapt to the needs of modern drilling process.


On the other hand, with the development of oil and gas resources to 7000m deep, well conditions are complex, drilling start-up and downhole operations are more and more frequent, and in the traditional mode of operation, the frequency of long hours and high intensity labor of operators will become higher and higher; at the same time, the environmental factors of sand, extreme cold and heat, as well as boring and tedious operations make the safety risks in the operating area prominent and long-lasting. The realization of replacing manual work with mechanized production and reducing human operation with automatic control is an important way to solve the above problems.


Mexico as a large oil country, the oilfield service industry oil equipment market contains great potential, in the purchase of new equipment at the same time, to upgrade equipment and improve production capacity by way of renovation, is undoubtedly a very good choice to save costs and improve efficiency. Therefore, the market prospect of rig upgrading is broad and the number of orders should not be underestimated.


PEMEX, the Mexican national oil company, has been working in recent years to reinvent the oil and gas chain, with the company's operations ranging from upstream oil and gas exploration and production to downstream industrial transformation, logistics and marketing. A large company like PEMEX has many old rigs, and many land rigs that have been in service for more than decades are still in operation. If this market can be opened and recognized, the market effect will be seen, and CMIC will be able to provide better solutions for more oilfield service companies with a large amount of old equipment in the process of upgrading their equipment, and a large amount of old equipment will be renewed and become a favorable weapon for them to explore new markets, with maximum savings on input costs; and CMIC will also harvest more orders and boost The performance will continue to increase.


CMIC has been working closely with PEMEX to provide flexible and high performance offshore and land drilling product services and upgrade support. The long-term good cooperation will be beneficial for CMIC to increase its market share in Mexico, expand its brand influence and global business expansion.


It is worth noting that opportunities often come with challenges. Rig upgrade is as difficult as a new product design, if not more so. New product design is to manufacture according to your own ideas under the big specifications. The rig modification is to improve on the original production habits, first to meet the specifications, and second to meet the original production habits, but also to improve. Familiarity with Mexican standards and Mexican rigs will be a priority. If not familiar with it is not possible to retrofit better.


To deal with the challenges, CMIC has established a professional technical personnel team and product service team to quickly respond to customer needs with superior production technology and comprehensive service capabilities. With the professional technical team and rich project experience, in 2022, TSC MS, a subsidiary of CMIC, successfully executed a project to upgrade eight 2000 HP land drilling rigs in the southern region of Mexico. The project aimed to refurbish, upgrade and modernize and automate PEMEX's existing drilling rigs to comply with the Modern Operations and Safety Standards. The project was executed by a joint team of TSC MS and Andrews Technologies Inc. (ATI), a long term partner of TSC MS in Mexico. The project was completed and was greatly appreciated by PEMEX. The project not only saved PEMEX 60% of the cost of purchasing a new rig, but also increased the drilling capacity of the old rig to 8,000 meters in a faster, safer and more efficient way, which is reported to reach 16,000 barrels per day per well, equivalent to the daily production of a small to medium-sized oil field in China. At the same time, TSC MS has improved the safety conditions of the rig through innovative means while reducing the impact on the environment and improving the operational reliability and efficiency of the rig.


In the future, with the development of global drilling rigs, the further improvement of national requirements for safety production, and the shortage of front-line workers at drilling sites, who are too old to adapt to the heavy physical labor at drilling sites, automated drilling rigs are an inevitable trend in the development of land drilling rigs. Automation not only simplifies data management and reduces downtime, but also greatly improves the safety of drilling rigs while reducing labor intensity, improving drilling working conditions and reducing the total number of workers, which is indispensable for the sustainable and healthy development of the industry. In this context, CMIC seizes the opportunity of cooperation with PEMEX, continuously carries out technical R&D innovation and service quality improvement, strengthens the development of automation and intelligence of land drilling equipment, and shows the market demonstration effect, which will win more market opportunities and increase the pace of its global development fast and steady.