Domestic Imaging Logging Tool Sold to Russia for the First Time

According to the “China Energy News” report, the MCI5570 micro-resistivity scanning imaging logging tool independently developed by CNPC Well Logging Co., Ltd. (“Logging Company”) was sent to Xi'an for the first time from Xi’an and realized domestic imaging logging. Zero breakthrough in the instrument logging market in Russia.

The MCI5570 micro-resistivity image logging tool is one of the imaging products officially launched by the logging company to the domestic and foreign markets in 2008. It can be used to solve crack identification and evaluation, thin-layer evaluation, lithology classification, sedimentary facies analysis, structural analysis and strata. Anisotropic evaluation enhances the ability to solve complex geological problems. The main technical indicators and effects have reached the level of foreign similar instruments.

At present, only domestic logging companies have micro-resistivity imaging logging tools with independent intellectual property rights. The instrument has been exported to Indonesia and the Uzbekistan market and put into use. It has achieved good results and has won the attention and favor of the Russian geophysical company TNG. On May 7, 2010, the logging company and TNG domestic agents signed the "MCI5570 Micro Resistivity Scanning Instrument Sales and Technical Service" contract. According to the contract, the logging company will also provide TNG with 2-3 years of logging operations, instrument maintenance and data interpretation services. The successful sales of the instrument laid the foundation for the logging company to expand the well logging equipment sales and technical service market in Russia and surrounding areas. This model of relying on instrument sales to open up the emerging international market will have important implications for logging companies to rapidly expand the international logging service market in the future.

Russia’s oil production ranks second in the world, and its petroleum engineering and technical service market is vast. However, due to various reasons, it is very difficult for Chinese oil companies to enter the Russian market to conduct business. To this end, CNPC encourages various professional companies to actively explore Russian operations. At present, only Eastern Geophysical explores operations in Russia. It is not easy for logging companies to enter the Russian market this time.