The presence of an IOC such as Total will propel quality standards in the Iranian market.

Hashem SABBAGHAN Managing Director Petro Danial Kish

Integrate and compete

October 10, 2017

Hashem Sabbaghan, managing director of Petro Danial Kish (PDK), talks to TOGY about the company’s work at South Pars and the impact of Total’s phase 11 deal, as well as the benefits of its new service barge. A subsidiary of Pasargad Energy Development Company, PDK is an oilfield services provider.

PDK is a Tehran-based provider of oilfield services that offers well perforation and well testing services in Iran’s upstream sector. As a subsidiary of Pasargad Energy Development Company, the company has financial backing from Pasargad Bank. PDK provides borehole petrophysical and completion services such as open hole logging, cased hole logging, perforation, setting packers and plug with its digital advanced system.

• On the company’s new service barge: “This new service barge, Hilla, has a capacity for 110 people on board and supports a 250-tonne crane. On this barge, PDK is providing all of its conventional services such as well testing, logging and perforation, plus the new ones that we are starting to offer to upstream players, such as coiled tubing and acidising.
Just recently, we have been involved in projects in South Pars phases 20 and 21, during which Hilla will be playing an important role.”

• On the impact of Total’s SP11 deal: “We will experience an overall improvement in the quality of services as Total standards are implemented. All the players in the market will find the incentives to invest and improve their standards of service execution as well, to remain competitive. Thus, it will create a positive effect for the Iranian players.”

Most TOGY interviews are published exclusively on our business intelligence platform TOGYiN, but you can find the full interview with Hashem Sabbaghan below.

How will Total’s South Pars phase 11 agreement impact the Iranian oil and gas industry in the near term?
Looking at the positive impact of Total’s agreement with NIOC for the development of South Pars phase 11, we can identify two effects.
First, this is the first IPC [Iran Petroleum Contract] signed with an IOC. Due to the regional context and current industry dynamic, it will play a role as an “ice breaker” deal, because every international player that was interested in entering the market but remained cautious will be able to see the level of professionalism and transparency with which this phase will be developed. Thus it is expected that other companies will follow and seal new agreements in the new future.
The second effect is that the presence of an IOC such as Total will propel quality standards in the Iranian market. We believe that they are going to bring in and implement their standards and spur such changes across the market.
We will experience an overall improvement in the quality of services as Total standards are implemented. All the players in the market will find the incentives to invest and improve their standards of service execution as well, to remain competitive. Thus, it will create a positive effect for the Iranian players.

 

What was PDK’s scope of work in the South Pars phases inaugurated in April 2017?
We have been involved in phases 15 and 16 in the past, providing perforation and well testing services. In phases 17 and 18, we mainly did well testing and clean-ups with NIDC [the National Iranian Drilling Company] as client.
In phase 19, we did almost all of the perforations and most of the well testing, logging and sampling for Petropars Company. Finally, for phase 21, we applied the drill stem test and delivered sampling, perforation and descriptive well testing, as well as clean-ups and wireline logging for NIOC.

What has been PDK’s focus in the past 12 months?
Our major focus has been on the company’s restructuring to become an integrated solutions provider, instead of a group of independent service suppliers. This came as a result of the PEDC [Pasargad Energy Development Company] holding’s rapid expansion, which required a reorganisation of its companies to improve the structure.
In this context, and as part of our integrated focus, we regrouped into four different pillars: upstream, midstream, downstream and power generation. Currently, we have specialised companies under each pillar. PDK, for instance, is categorised in the upstream pillar.
This way, we are able to find further synergies between colleagues and create service packages in which each subsidiary brings its input as part of a whole integrated solution offered to our client. Having this new approach, our strategy is to approach tenders as one strong entity.

How will the company’s new service barge affect operations?
PDK has been focusing on this project for the last eight months and now it is operational. This new service barge, Hilla, has a capacity for 110 people on board and supports a 250-tonne crane. On this barge, PDK is providing all of its conventional services such as well testing, logging and perforation, plus the new ones that we are starting to offer to upstream players, such as coiled tubing and acidising.
Just recently, we have been involved in projects in South Pars phases 20 and 21, during which Hilla will be playing an important role.
Nevertheless, we are still in the implementation phase and so we are moving slowly, reading the market needs and making our own diagnoses, as this is a completely new technology in the area and we want to see its successful introduction to the market.

What is PDK’s approach towards investing in HSEQ to lower risks while still delivering efficient services?
Since the beginning, we have looked at HSEQ as a main priority of our business, not as an extra one. This commitment has been proven through all the HSE awards we have received for our previous work in South Pars. In phase 12, we were named the contractor of choice in terms of HSE by Petropars Company.
We have a system in place with four people fully dedicated to monitoring the successful implementation of our HSE policy and 10 others who are involved with HSE on a daily basis as members of our loss prevention team. We have created an application called the NOAH system to efficiently perform this monitoring work. This app records every HSE-SQ [service quality] report and every audit that a line manager is conducting.
We have clear objectives for everyone in the organisation part of which is that everyone has to write HSE and SQ reports. Everyone has to be vigilant in reporting problems and creating action items to address them with the appropriate person. However, we are always open to improvement and the fact that international companies are coming to the market and bringing their best practices will help us learn and grow our HSE culture as well.

How do you see PDK’s position changing over the next five years?
In the next five years, we project PDK will be active in this region. Overcoming challenges such as the need for the total removal of sanctions on Iran will be imperative to make these plans concrete.
We have everything we need in terms of logistics, financial background and technical capabilities to start carrying out projects abroad. The Iranian market is facing a surplus, a different situation from two years ago, so there is momentum among Iranian companies to seize business opportunities regionally once the external conditions are fully in place.

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