Rosneft and Shandong Kerui Petroleum Equipment have signed a Memorandum of Understanding on strategic cooperation in the area of oilfield services. The document was signed by Rosneft CEO Igor Sechin and President of Shandong Kerui Petroleum Equipment Hae Shitsun.

The document sets the basis for future cooperation development between the companies. In particular, the Memorandum provides for a joint pilot project in Russia.

Implementation of the memorandum will allow Rosneft to optimize the cost of oilfield services and appropriate equipment by strengthening the competitive environment in the domestic market. At the same time, engaging such a progressive partner as Shandong Kerui Petroleum Equipment will further improve the performance of the Company's service businesses.

Following the signing of the documents, Igor Sechin said: "Development of in-house services is a strategic objective of Rosneft. The Company consistently builds up the competence and capacity of its own oilfield service units which can significantly improve the efficiency of the key operating segment – Upstream. Shandong Kerui Petroleum Equipment has high-tech equipment and software for the most popular works in the up-to-date oil and gas production. Cooperation with the Chinese partners will allow us to further improve the performance of producing assets. "

NOTES FOR EDITORS:

In Q1 2016, Rosneft increased the development drilling by 52% compared to Q1 2015 to 2.08 million meters in accordance with the annual targets which in turn will increase the number of fracs (hydraulic fracturing) and other oilfield services. The share of in-house drilling services in the total amount of penetration consistently exceeds 50%, or above 20% for fracs. New wells put into operation grew by 59% compared to Q1 2015 (the percentage of horizontal wells is 30%).

Shandong Kerui Petroleum Equipment is a private Chinese company with head office is based at the second Chinese largest oilfield Shengli in Donging (China). Currently the company employs over 8000 persons, the corporation counts 16 R&D centers (Peking, Singapore, Houston, Calgary, etc.), 9 regional sales centers, 57 subsidiaries and offices all over the world. Its key customers are PDVSA, Arabian American Oil Company, Shell, CNPC, Weatherford, etc.

Rosneft Information Division
Tel: 7 (499) 517-88-97
Saturday, June 25, 2016