Manufacturers of drilling rigs vote for the adoption of the bill #3739

On Wednesday, July 15, the Verkhovna Rada Committee on economic development approved in the first reading the bill #3739 “On amendments to the Law of Ukraine «On public procurement” to create prerequisites for sustainable development and modernization of domestic industry».

Ukrainian industry supports the adoption of this bill. In particular, manufacturers of drilling equipment supported the bill. Lily Voytyanivska, CEO of the Discovery Drilling Equipment Ukraine:

We produce self-propelled and stationary drilling rigs. This is a unique production that was developed mainly by our Design Bureau. Our rigs are used on 5 continents, including Africa, Asia, and North America. The equipment works in such companies as Shell, Weatherford, and Ukrgasvydobuvannya. However, we did not work with them directly (UGV – ExPro), as it is very difficult for us, as a Ukrainian manufacturer, to get a positive result in any tenders. Difficulty is in financing. This is 100% payment on delivery. We don’t have any free cash available for such orders. The production cycle is long, the equipment is expensive, and one drilling rig costs $3-4 million. Therefore, our work is mainly designed for foreign countries. In Ukraine, we can only work with private companies. It would also be interesting to work with the state-owned companies, because they provide large scopes. But we are not competitive in Ukrainian tenders. We participated in the UGV tender for the construction of 5 rigs, but due to various, including financial reasons, we were not able to win. Therefore, we would like to work (in Ukraine - Ed.). 45% localization is provided for our products. That’s enough. Currently, mainly Chinese rigs are on the market. We can’t compete with them, because the cost is much lower. In fact, they are 3.5 times cheaper. But the quality... We are a fully certified company, we have API certification, and we have constant audits and checks. Only we have a full cycle of drilling rig production in Ukraine. There are no other manufacturers in Ukraine. There are only a few companies in the world. But in general, this industry is very developed and there are manufacturers that can make separately pumps and drill bits

19:00 / 17 July, 2020

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