Hashem Sabbaghan, Managing Director of Petro Danial Kish (PDK) talks to TOGY on the current status and future outlook of the company and the business. On the warm afternoon of July 8th, PDK hosts TOGY interviewing team who are making the second edition of the The Oil & Gas Yearbook of Iran, 2017.
Here is a summary of the interview.
TOGY: Can you please provide us with an update on operational highlights and latest developments of the past twelve months in PDK?
In the past 12 months, we have been delivering our usual offshore services as well as exploring and developing opportunities on the land. We have thrived to provide our clients with technical and knowledge-based solutions for production optimization. Besides, we have completed numerous projects in newly inaugurated phases in Persian Gulf including 17, 18, 19, 20, and 21. We also managed to fulfill one of our greatest ventures which was turning an accommodation barge to a service delivery barge called Hilla. We introduced this new venture in Iran Oil show 2017 which attracted a lot of attention. She can provide services such as wireline logging, perforation, well testing, coiled tubing, etc. to offshore projects. Hilla can dramatically reduce costs incurred by offshore rigs as and when rigs are no longer needed for drilling.
Currently we are having close negotiations with clients to introduce the new services and luckily we have been able to attain much interest from our clients. Meanwhile as part of our vision to become one of the top regional OFS contractors, we have signed agreements with several European and Russian companies in order to join forces for local as well as regional projects.
TOGY: You mentioned that PDK had several projects in new phases. Can you please elaborate on this?
We had quite a successful record of projects in these phases. A few months, ago president Rohani inaugurated 5 new phases in South Pars gas field (17, 18, 19, 20, and 21) which added 150 mcm to Iran’s gas production. This helped us get an equal share of production with Qatar in the shared offshore field. PDK proudly is among Iranian service companies which have played important roles in mentioned phases. We have successfully completed following projects:
- Clean-up of several wells in phases 17 and18 for NIDC as the client.
- Clean-up, well testing, logging, perforation, and sampling of several wells in phase 19 for Petro Pars as client.
- Drill Stem Test (DST), sampling, perforation, and well testing for descriptive wells, as well as clean-up and logging of several wells in phase 21 with NIOC as client.
TOGY: As an Integrated solutions provider, what is the role of PDK in the upstream segment of Pasargad Energy Development (PEDC) holding?
Under the umbrella of Holding, we would like to fulfill the dynamic integration and value each of the sister companies. By compatible, harmonious, and organized cooperations we add to each other and to the group. The PEDC upstream vision is to unite and synergize the power and capacity of each subsidiary company to enter into new projects collectively.
TOGY: As an upstream player, what is your opinion on the recent SP 11 deal between Total and NIOC, and how it will affect further international E&P deals under IPC?
I believe that such deals can have two lines of direct and indirect impacts. First, it is significantly important in giving the message to other hesitating IOCs that the environment for cooperation with Iran’s oil industry is suitable enough to enter and that the latecomers might receive little portions of the cake. Besides, we can say that raising the standards and quality improvement as consequences of intense competitions are among indirect impacts of such deals.
TOGY: Following this, and given the context, how optimistic is PDK towards future upstream activities and field development in Persian Gulf within the next 5 years?We expect to see a growth in Persian Gulf activities due to the new plan for exploration and development of giant SP 11 as well as other fields which could need services such as stimulation for higher production. To this end, we have equipped ourselves with necessary tools and expertise such as acidizing and coiled tubing units, experts, etc.
In addition, our new service barge is capable of substituting drilling rigs used for work-over jobs such as wireline logging, well testing (conventional and high rate), perforation and other typical services. We anticipate that clients will soon notice the benefits of PDK service barge (especially cost reduction and safe and quick mobility) and call us in for required services.
TOGY: Understanding this and your position in the market, how would you define PDK’s level of technical preparation and field knowledge to deal with operational challenges in this complex industry?
Fortunately, PDK has been quite successful in positioning itself as an expertise-oriented company to clients. This happened through reliance on our human resources, knowledge, and technical capabilities. We have done a number of projects which are quite new and challenging in the industry. For instance, we have accomplished well testing project of heavy oil in South Pars oil layer with Petro Iran as our client. The results were quite satisfactory to the client and we celebrated exploitation of this oil layer a while ago. We have also executed very accurate perforation projects using correlation method which was designed and implemented by our own experts. These are only a few challenging projects PDK has successfully accomplished. We have reached the necessary Technology Readiness within our company on the one hand and the knowledge of Iranian fields on the other. We are quite ready to accept bigger and new challenges. Besides, we believe that with the level of potential and expertise in PDK, we are quite ready to go beyond borders and take over projects in neighboring countries and to do so we are in negotiations with reputable foreign companies to enter into new ventures either in Iran or in the region.
TOGY: Providing high-quality and cost-effective services can’t be achieved without a sustainable Health, Safety, and Environment policy. In this sense, what is PDK’s approach towards HSE in order to guarantee the most efficient solutions while minimizing risks according to international standards?
Compliance with HSE and quality standards stands atop of our priorities. We have developed an in-house efficient system (NOAH-sys) for HSE reporting and corrective actions to monitor and resolve related issues. PDK management and experts are putting a lot of time on HSE issues. Meanwhile, in meetings we have had with IOCs (like Total, Maersk, etc.) to introduce PDK, one of the aspects that pleased them was the HSEQ achievements and attention paid to HSE issues at all levels of the company. With our personnel committed to HSEQ regulations, we will certainly be able to compete with international companies in this regard. (End of interview)