CCDC working to create a better future

CNPC Chuanqing Drilling Engineering Co Ltd, a subsidiary of China National Petroleum Corporation, is a comprehensive oilfield service provider with a complete package of oil & gas engineering technology systems and technical standards. It has independent foreign trade and technical and economic cooperation business rights. It has the foreign trade right and technical/economic cooperation right as an independent business operator.

In July 2001, CNPC Changqing Petroleum Exploration Bureau took up the ATACAPI-PARAHUACU oilfield integrated service project of EP PETROECUADOR as an opportunity to enter the oil and gas market in Ecuador. In November, a branch office was registered locally. In 2008, the office was officially renamed CNPC Chuanqing Drilling Engineering Co Ltd - Ecuador Branch after reorganization and integration.

In the 20-year development process, the company has achieved mutual benefit and common development by focusing on performance, winning by quality, working together with local customers and partners, drilling thousands of wells efficiently and creating many drilling records. Growing from only one drilling rigto eight rigs and five workover rigs, CCDC Ecuador has developed into a comprehensive local oilfield service provider, which has established itself in its rig and workover drilling services, introducing new lines of services including oilfield stimulation, solids control, cementing, drilling fluid, horizontal and directional drilling, machine repairing etc.

At the end of 2007, the AP project was fully completed. Through this project, the company gained experience, and won the space for local development and growth. With the completion of the AP project, the company management also began to think out of the next step. Under the consideration that Ecuador's oil and gas market will continue to develop at a high speed, the company decided to introduce 7,000-meter drilling rigs in order to establish a market foothold for a large number of daily-rate drilling services based on EP PETROECUADOR company. At the same time, it redoubled efforts to explore bigger markets, stuck to a diversified business development path and seized the opportunity of increasing oil reserves exploration and production advocated by the Ecuadorian government.

In 2008, with the successive introduction of 7,000-meter drilling rigs and workover rigs, the company had five drilling rigs and two workover rigs occupying more than 20 percent of the local market share and becoming one of the mianly drilling service companies in the local market. So far, a steady flow of positive news has put the company on the fast track.

In 2011, the company successfully won a bid for the Rio Napo integrated drilling engineering project, which firstly introduced the trade service in the project. From 2012 to 2015, the company became the second-largest local oil and gas engineering service contractor and introduced the oilfield technical service into the local market. Two teams responsible for solid control and waste liquid treatment services have been established successively. The company conducted research on the potential market of cementing technical services, and successfully launched the first cementing service team to maintain deep roots in the high-end market.

In 2017, the company successfully signed the Tambococha oilfield drilling and completion integrated service project, which is the first comprehensive oilfield development project containing drilling and oilfield technical service. It marked the company had became a comprehensive oilfield service provider. In this year, CCDC Ecuador achieved a market share of 55 percent. At the same time, its independently-developed drilling fluid technology and the system of horizontal wells and extended-reach wells had been well received by customers.

In 2018, the Ecuadorian government launched an oilfield stimulation service model in response to a continuous drop in global crude oil prices. The company adapted to change and successfully signed the PARAHUACU oilfield stimulation service contract. It was the first oilfield service company which gained the overseas oilfield stimulation service project among all the same type companies of CNPC. The company was not only responsible for drilling, cementing and other oilfiled technical services, but also took charge of oilfield geological research, well site construction, surface gathering and other integration projects. T To fulfill the customer's high requirements, the company took full advantage of the parent company's complete industrial chain and comprehensive technology in oilfield integration. The company conducted geological analysis of old oilfields, provided integrated solution to enhance the productivity of oilfield and and successfully contributed to the increase of oil reserves and production in Ecuador. At present, the PARAHUACU project has achieved a daily increase of more than 3,000 barrels of crude oil, with a cumulative increase of more than 2 million barrels of crude oil.

Bearing in mind the CNPC's tenet, "contributing energy and creating harmony", the company always actively fulfilled its social responsibilities and created opportunities and wealth for the local society. In the past 20 years, it has provided more than 500 continuous work positions for locals, with a total of more than 10,000 jobs, and contributed tens of millions of dollars in tax revenue. The company also led the "Spring Vaccine Action" for vaccination which was fully supported by the Chinese embassy in Ecuador. In recent years, the company has further promoted its engagement in public activities, established a strategic partnership with the Central University of Ecuador, jointly established a Water Treatment Laboratory and carried out scientific research cooperation on green environmental protection in petroleum engineering. The company also provided internship positions for college graduates and actively participated in college recruitment to solve local employment problems. On Dec 9, 2021, an online signing ceremony for a memorandum of cooperation between China's Chengdu University of Technology and the Central University of Ecuador was held under the active coordination and promotion of the company. This was a solid first step to a framework cooperation agreement to jointly cultivate global talents for schools and enterprises along countries and regions in the Belt and Road Initiative.

The COVID-19 pandemic continues to rage and causes the damage to the global economy. With advanced oilfield development technology, first-class employees andrich experience in management and operation, the company will work with customers and partners to overcome difficulties and create value, opportunities and wealth for society, working hand-in-hand to create a better future.