How we differentiate

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Having established a leadership position in the Russian drilling market over the past nine years, our priority is to sustain and extend this leadership position in the future.

Our differentiated proposition is built around our scale, our efficient execution and our partnership with our customers and we will seek to maintain this differentiation as we pursue the following:

  • Focus on our core strengths

    We seek to be the market leader in our core competences of drilling and work-over. In 2011, we sold the bulk of our drilling service assets to Schlumberger as part of a larger transaction in which we bought significant numbers of existing drilling, work-over and sidetracking rigs.

  • Invest in our assets and our people

    We believe that the key to our differentiation is the quality of our assets and the quality of our people. We have invested heavily in both our rig fleet (our rig fleet age is younger than the Russian average) and recently opened training center in Kogalym with 3 drilling simulators and other hands-on training facilities. We believe we have the most competitive remuneration structure, ensuring our people are incentivized to deliver best performance.

  • Constantly strive to improve efficiency and safety

    EDC has long experience of driving operational efficiencies, which contributed to having low NPT (nonproductive time) in our operations. We have one of the best records in the industry as to downtime, health and safety.

  • Become our customers' partner

    One of the unique characteristics of the Russian oil industry, and essentially the biggest barrier to entry, is that oil companies often have virtual monopolies in certain brownfield producing regions. There are legacy relationships between oil and service companies in these regions and retaining these requires a partnership approach. Our focus on developing longer-term framework agreements with all our customers will give us greater certainty and visibility of cash flows, allowing us to make the investments that our critical to our long-term growth.

  • Anticipate structural changes in the industry

    Sustaining our leadership position owes as much to the ability of our management team to anticipate changes in market dynamics as it does to the execution of our stated strategy. We anticipated that demand for horizontal drilling would grow strongly and so we have strengthened our ability to deliver complex well solutions by investing in our rig fleet, training our crews and by forging a strategic alliance with Schlumberger.

  • Commitment to strong financial results

    Our leadership position, focus on improving efficiency and prudent financial management will allow us to continue to deliver strong financial results.  We follow closely the trends in the world markets and, keeping in mind the needs of our customers, are shifting towards the corporate model “One operating company with multiple branches”.
    We are committed to retaining a strong balance sheet, allowing us to meet the challenges in the volatile markets, while preserving the flexibility in addressing the customers’ requests relating to the organization of work, as well as the contracts structure.