1. Completion of the deepest well drilling in
Indonesia-- Kerui Petroleum sets a
benchmark of well completion service
In thisMay, with theending of thethird testingof 1Xwell, Shandong Kerui PetroleumEquipment
Co., Ltd. (hereinafter referred to as Kerui Petroleum) successfully completed the construction of
five wells as required in its first Indonesia exploratory well contract for both labor and material.
In a strange region, with no data for reference, Kerui Petroleum, by relying on new technologies,
took only 135 days to accomplish the task in a quick and best way, which an international well-
known drilling company could not realize by using 328 days. Kerui left its rival far behind in
the operation of five well completion. The maximum drilling depth reached 5386 meters,
refreshing the top record of land well drilling depth in Indonesia. The company fully displayed
its advanced project management level, world leading well drilling and completion-integrated
solution and technical power, thus gaining the client praise and setting up a new benchmark in
well drilling and completion operation on Indonesia market.
Efficient preparation and strict project management guarantees a safe and efficient operation
In the early preparation for this Indonesia project, the remote construction site which was near
a primitive forest nearby the equator, crisscrossed islands, heavy rain and lack of ready road
made equipment mobilization extremely difficult. In addition, there were also many other
difficulties such as strange block, strange stratum, super long distance mobilization of complete
sets of large equipment, complex sea, land and air logistic links and strange social environment.
However, Kerui realized getting personnel in place within 30 days, delivery of complete sets of
equipment within 55 days, and 9700 km mobilization of equipment via sea, land and air routes
within 90 days. Getting equipment in place as scheduled well guaranteed that the installation,
commissioning, testing and drilling startup could be carried out at the scheduled time. A senior
general manager of a domestic petroleum service company made a remark when knowing all
this, “even a giant international drilling company was hard to reach such a high efficiency in
project preparation.”
To guarantee the engineering quality of this Indonesia project, Kerui Petroleum attached great
importance to the project management and promoted the project progress strictly in accordance

2. with the operation standard and time points in terms of manpower, finance, properties, events
and planning. A leader of Well Drilling and Workover Business Department of Kerui Petroleum
said whatmade Kerui Petroleum different from other enterprises operatingin Indonesia was that
Kerui Petroleum showed a great respect for the employed local people and local partners. There
was very good exchange and communication between cooperative parties, thus greatly
improving the operation efficiency. Besides, Kerui Petroleum formulated an HSE management
standard conforming to local standard and requirement, and established the “Potential Safety
Hazard Identification System” by making reference to the international security management
method of STOP card (safety, training, observation and program) hidden danger identification
system. Kerui Petroleum intensified all-member safety consciousness and always put safety
production in the first place. Kerui Petroleum strived for the goal of ensuring the local
environment safety and realizing the owner’s interests.
By meticulous project management measures, site-specific flexible project management mode,
enhanced risk control requirements, process improvement and application of innovative
technology, Kerui Petroleum greatly reduced the faults and accidents in the project construction,
and realized efficient operation. A well-known well drilling contractor had worked in this block
for 328 days and achieved no result. But Kerui Petroleum successfully realized well completion
by using only 135 days, demonstrating the style of Chinese petroleum service team.
Apply innovative technologies to create an Indonesia drilling depth record
With respect to technology, Kerui set up a three-level (headquarters, project department and
construction site) technical management system, and implemented the technical management
measures and requirements level by level. Meanwhile, the headquarters strengthened the
technical support to the construction site by sending technical experts such as chief engineer to
stay at the site for operation guidance, thus guaranteeing the efficient implementation of
technical measures and tackling of major and difficult problems.
In view of too little information about the new block, Kerui Petroleum set up a special group for
tackling technical challenges, which carefully worked out the technical plan in light of new
block, strange stratum and many construction difficulties, and adopted a series of new
technologies and processes, such as large wellbore anti-deviation vertical drilling technology;
LWD drilling tracking monitoring technology ; urgent drilling technology of absorption well
section ; deep core taking and protection technology, and slurry technical system adapting to
new stratum. A number of difficult and complex problems were overcome, such as large

3. wellbore, gas stratum, serious loss in second interval, and shale expansion when in contact with
water.
By applying the above technologies, Kerui Petroleum summarized a set of well drilling methods
for B zone in Indonesia, which protected oil-bearing formation and gas-bearing formation,
shortened the drilling cycle, thus guaranteeing the completion of the construction task of five
wells specified in its first Indonesia contract in a safe, quality and quick way. Especially, in the
construction of the first well, under the condition that a foreign drilling company and a local
drilling company had completed a 100 core drilling in the same block before Kerui began the
drilling, Kerui Petroleum completed the well completion cycle within a period thatwas 154 days
and 108 days less than that of the above companies, respectively, which was only half of the
owner’s designed cycle, thus setting a good image.
Moreover, ZJ70 drill self-designed and manufactured by Kerui Petroleum played an important
role in Indonesia market. This drill is used for land drilling and has a maximum drilling depth
of 7000m, which has advantages of reliable performance, safe operation, environment
protection and high quality, and is capable of operating in a geological environment like
Indonesian tropic rainforest while keeping an optimal operation status continuously and stably.
Kerui Petroleum has enabled the client to achieve expected earnings in oil and gas production.
The leader of the client party made a very positive remark about Kerui. He said that, with
advanced petroleum technology and very good project management capability, Kerui Petroleum
is a very competitive company on Indonesia oilfield service market
Presently, as Kerui Petroleum has gained good public praise on Indonesian oilfield service
market, more and more clients have begun to discuss cooperation with Kerui. As of now, Kerui
Petroleum hasbegun theconstruction of its second Indonesianexploratory well contract for both
labor and material.