Market environment

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Brownfields - the maturity of Russia's producing provinces and the Russian government's desire to maintain and gradually increase oil production will require ever more aggressive drilling. By estimations made before the OPEC+ production cuts, this provides underlying market volume growth of 5% to 10% per annum (range is a function of horizontal metres drilled which take longer).

Greenfields - declining prospectivity in Russia's mature brownfield regions is spurring exploration and development in the more remote, more challenging greenfield regions and these require more advanced equipment and more complex solutions, for which our younger, heavier rig fleet and expert rig crews are ideally suited.

Horizontal metres - are expected to continue to grow at a higher rate than general market. This technology is used to arrest decline in mature fields and as a development method of choice for greenfields. It is also the only method to drain and produce tight oilfields.

Offshore - with high market entry threshold and limited supply of rigs, EDC maintain a market leading position with owning and operating 4 of 6 active jackups in the Caspian Sea jack-up market.

International - we have significant experience in Kazakhstan and Georgia and currently own and operate 5 rigs in the Kurdistan region of Iraq We see excellent opportunities to expand in the MENA region, a market with many parallels to Russia and the nearby countries, chiefly via acquisition.

EDC's size, market lead, large investment in rigs, personnel training and HSE enable us to offer extremely cost effective and efficient drilling & workover services to all customers.