1. Refining and Petrochemicals - Rompetrol.com

Rompetrol Well Services
2010 Key Achievements
• Revenues increased by 10% compared to 2009;
• The Kazakhstan Branch started the cooperation with KMG
E&P companies;
• Investment worth USD 1.8 million to improve cementing,
sand control and nitrogen services.
Rompetrol Well Services (RWS) is one of the leading companies
on the specific market segment in Romania, offering a wide
range of services for oil and gas wells: cementing, consolidation
and sand control services, stimulations, testing, slick-line, casing
running operations. The company has operations in other
countries located in Eastern Europe and Central Asia.
On an international level, 2010 marked a significant increase of
drilling services for oil and gas production activities, especially
in the second half of the year, linked to the crude oil price
increase. Although in Romania the increased demand for well
services was not significant, Rompetrol Well Services succeeded
in capitalizing on the greater volume of work and recorded
revenue and operating profit growth of over 10% compared to
the previous year.
The overseas activity was strongly influenced by the
collaboration of Kazakhstan Branch of the Rompetrol Well
Services with KMG E&P companies for their upstream operations
in the West Kazakhstan regions.
The company recorded in 2010 total revenues of almost USD
25 million, an operational profit (EBITDA) of over USD 7.3 million
and a net profit of over USD 3 million.
RWS continued its technologies and equipment modernization
program with the aim to achieve the performance standards of
the multinational well services companies by the year 2014.
In 2010, the strategy of investments was focused on the
upgrade of cement slurries mixing and pumping, sand control
and nitrogen services. A state-of-the-art cement mixing and
pumping equipment has been added to the company fleet,
enabling the provision of very complex cementing services.
A new mobile water filtering system and a new Sand Blender
were put into operation, enabling RWS to provide high
standards sand control and acid treatment services. Four new
units for transport and supply of liquid nitrogen and acids, built
according to the latest European environmental standards, were
also put into operations in 2010.
In 2010, the company continued the development of its
qualified personnel: a total of seven speciality training courses
were conducted during the year involving over 70% of the
operating staff.
RWS oversees all ongoing projects from its main office in
Ploieşti, Romania, offering technical support for 13 locations in
Romania, Kazakhstan and Bulgaria.
Business Development « Rompetrol Annual Report 2010 // 30
Evolution of the main Financial figures
(thousand USD)
25,000
20,000
15,000
10,000
5,000
24,849
3,061
0
2010
¢ Gross Revenues ¢ Net Profit
Clients Structure
(thousand USD)
3,472
3,225
¢ Petrom
¢ Romgaz
¢ Independent Operators
¢ Drilling Contractors
22,574
1,386 18
28
¢ Kazakhstan
¢ Russia
¢ Bulgaria
¢ Others
2009
Domestic market Overseas
15,884
2010 Key Achievements
• Improving cementing technology by implementing
automatic density control for cement slurry preparation;
continue technological improvement for sand control, slickline
and testing services;
• Expanding sales of well services in Central and Western
Europe;
• Consolidating operation capability in Kazakhstan to achieve a
total capacity of 8/10 equivalent cementing jobs per month;
• Completing the Investment Plan of USD 3.9 million .
The year 2011 will probably record an oscillating evolution of the
well services market in relation with the evolution of crude oil
prices and oil demand in the emerging markets.
126
3,848
In this market environment, the company will focus on
the improvement of operating profits by technological
development and process optimization, consolidation of
domestic market and development of the Kazakhstan Branch.
Through joint operations agreement with major upstream
services companies, RWS will seek to take advantage of
new business opportunities in Central and Eastern Europe.
The investment program will consist of consolidation of the
operational fleet by increasing the capacity and improving the
equipment performance.
137
Rompetrol Quality Control
Rompetrol Quality Control – RQC – the laboratory division of
The Rompetrol Group, is one of the leading companies on the
domestic market of laboratory testing. Since its establishment
in 2004, RQC constantly supports the effort of its clients (both
companies within the Rompetrol Group and third-party
customers) to identify and implement safe and efficient
methods to protect the environment and ensure the product
quality.
Regardless of the economic difficulties caused by the financial
crisis, the year 2010 reflects a positive trend of the company
concerning both the development and improvement of
its business activities, as well as its financial results. RQC has
managed to keep its major clients and attract new ones, even
if the objective of every firm confronting such unfavourable
market conditions was to reduce the costs, including the ones
related to laboratory analyses.
Major achievements in 2010
• Entering a new market niche and implemented new types
of analyses according to the specific legislation and clients
needs;
• Turnover increase and business consolidation;
• Obtaining excellent scores by RQC’s laboratories through
the participation to various international inter-laboratory
proficiency tests.
In 2010, RQC continued to develop its business activities
by implementing new types of analyses and acquiring the
appropriate certifications, in order to meet its clients changing
needs and according to the specific Romanian and European
legislation:
- stability determination of diesel oxidizing (Rancimat
method)
- ethanol content determination from gasoline
- manganese content determination from gasoline
- bioethanol analyses (alcohol content, acidity, metals, nonvolatile
substances content, mono-saturated alcohols C3-C5
and methanol)
- coal analyses (power, humidity, volatile, ash, sulfur, metals).
This was added to the wide range of analyses previously
performed by RQC throughout time, which include:
• Complete oil products analysis (crude oil, gasoline, diesel
oils, LPG, kerosene, petroleum cuts, coke and petroleum
sulphur, ecological fuels - biodiesel and bioethanol, bitumen,
etc.)
• Complete water analysis (contaminated chemical water,
processing water, drinkable water, drainage water, cooling
water, softened water, desalting water, boiler water, swimmingpool
water, steam, condense water, underground water, etc.)
• Complete soil analysis (industrial soils, agricultural soils, and
industrial mud)
• Complete air analysis (physical and chemical toxic
substances from the working places air and from protected
areas by determining the corresponding concentrations)
• Explosion metering analysis (determination of explosion
hazard potential when working with open fire in industrial
spaces and closed vessels)
• Medical and bio-toxicological analysis (for quantitative and
qualitative determination of various specific components)
• Analysis of physical and chemical toxic emissions at working
places (by observing the provisions of the applicable labour
protection norms)
• Analysis of weather factors, environment and specific
microclimates
• Chemical analysis on metal materials
As a major achievement in 2010, RQC has entered the market
of coal laboratory analysis through cross-checks and an
audit process. The specific analyses for coal (power, humidity,
volatile, ash, sulfur, metals) are main analyses used in the
calculation of combustion power and gas emission control
in the atmosphere. The entrance to this market niche has
contributed to the increase of the revenues obtained from
third-party customers and consolidated our market share.
The accuracy of the processes and analyses performed
is confirmed by the certifications RQC obtained and has
managed to maintain, creating the tools to enlarge the
portfolio of third party customers and consolidate the
company’s position on the specific market:
• RENAR - Romanian Accreditation Association. All RQC
laboratories are accredited according to the standard SR
EN ISO 17025:2005, a certification granted by RENAR, the
only institution at national level certifying the standards of
laboratory activities. Hence, analyses performed by RQC are
acknowledged in over 70 countries signers of the agreements
for international acknowledgement (I.L.A.C, M.L.A., E.A.)
concluded by RENAR;
• Germanischer Lloyd (2008) certified RQC for the Integrated
Management System: Quality (ISO 9001), Environment (ISO
14001) and Workplace Safety (QHSAS 18001)
• AFER - Romanian Railway Authority – licenses for railway
products trials (diesel, oils and environmental parameters)
• ISCIR - Romanian Inspection Authority for Control of Boilers,
Pressure Vessels and Lifting Equipment - license for metallicgraphic
trials and boiler water tests
• Ministry of Health (Public Health Department) -
Authorization to conduct professional toxic emissions
measurements
RPT_2010 Annual Report_1024x768.indd 30 22/11/2011 10:35 AM