OAO RITEK Selects Schlumberger for Horizontal Well Project

Schlumberger has been selected by Russian oil and gas company OAO RITEK as the main contractor for a drilling project of ten horizontal wells in the Sredne-Khulymskoye field, Nadymsky district of Yamalo-Nenets autonomous area. This is the first time in Russia that a service company will act as project manager to execute an horizontal well field development. Contract signature is expected in the first half of April, with the first well to be spudded in May 2004.

General Director of OAO RITEK Valery Graifer said: "Today, horizontal drilling is one of the priorities for our company. We believe that the successful implementation of this project will considerably enhance oil production in the Sredne-Khulymskoye field. Our plans also include a wide application of the concept of horizontal drilling on other fields of RITEK" (side track drilling, etc.).

In the harsh environment of West Siberia, Schlumberger will leverage its turnkey expertise in Integrated Project Management to deliver an optimal business solution to RITEK.

Maurice Dijols, President of Schlumberger Russia added: "We are pleased to participate in this project as the general contractor for OAO RITEK. We believe it will give us an excellent opportunity to demonstrate the value of our technology and project management skills."