Tendeka secures new AICD supply agreement in Beijing

March 5, 2014

Tendeka has secured a two-year contract with Zonton (Beijing) Energy Technology Company for the supply of autonomous inflow control devices (AICDs) in China. The agreement will see Tendeka install AICDs in wells across Beijing oilfields to help monitor and control fluid production.

Zonton, who focus on integrated oilfield services, has built up a strong presence in Jilin, Xinjiang, Liaohe and Huabei oil fields with particular emphasis on completion tools and production logging to enhance client productivity. Working with Tendeka, the oilfield services company will provide its clients with an AICD system that will significantly increase the yield from the oilfields.

Han Yanping, CEO and president of Zonton commented: “As Tendeka’s strategic partner for the AICD product in China, we focus on completion and rebuilding well technology in oil field services. Recognised as a top-level enterprise in China, Zonton has highly developed technology. China‘s oil market is steadily increasing its oil production and it is expected that horizontal wells will be widely adopted. Our clients are planning to rig 3000 horizontal wells per year in China. Tendeka’s AICD technology is a major break-through in water control in horizontal wells, it will greatly enhance our water control ability in in the later phase of oil production and we therefore expect horizontal wells will be widely utilised in China.”

Gillian King, Tendeka’s vice president for Asia Pacific said: “This agreement is very much in line with Tendeka’s philosophy of focussing on the near wellbore to enhance production through monitoring, modelling and control of the reservoir, with the use of our specialised lower completion equipment and services.

“The contract award highlights our commitment to providing solutions that respond to the oil and gas industry’s needs, and by joining our technologies and product knowledge with Zonton’s local expertise and footprint, we can achieve this across the Beijing oilfields.”

Mr Yanping added, “Our personnel all have more than 20 years experience in the oil production industry and we have recently employed completion experts who used to work for CNPC and SINOPEC. We believe the collaboration with Tendeka will put us in the best position to ensure China energy security in the future.”

Tendeka has developed its AICD range to help operators overcome the technological challenges of early water and gas breakthrough. The Tendeka FloSureTM inflow control device can be used to control injection from the entire length of a horizontal well drilled in an oil reservoir.

The FloSureTM AICDs are run as part of the open hole completions in horizontal wells and have been designed to control gas production in low to medium viscosity oil wells, and for water control in heavy oil wells.

In conventional production wells, fluids have a tendency to cone at the heel of the well, leading to early water or gas break. Evening out the inflow profile results in better coning control, thereby delaying the water or gas breakthrough and improving recovery, revenue and well life.

Tendeka currently operates throughout Asia Pacific but in particular in China, Australia, Indonesia, New Zealand, Brunei and Malaysia. Gillian said: “Existing contracts are held for DTS in coal bed methane wells, swellable packers for the hydraulic fracturing market and we recently won a contract for swellable packers with Petronas Malaysia.”

Tendeka has a proven track record for the provision of completions and reservoir monitoring products, systems and services to the upstream oil and gas industry. Its robust solutions help operators overcome the technological challenges they are facing, as it works to continuously develop its offering to the oil and gas industry.