Coiled Tubing Times’ correspondent interviewed Mr. Forrest Wang, Vice-President of Jereh Oilfield Services Group Company. The interview was facilitated by Ms. Nadia Zhong, the company’s Deputy General Sales Manager. The interview took place during Neftegaz-2014 Expo.

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Coiled Tubing Times: Mr. Wang, would you please introduce Jereh group Company and its main areas of activity to our readers?

Forrest Wang: Jereh Group Company was established in 1999, precisely 15 years ago. Jereh’s main area of activity is the manufacture of equipment for well drilling and completion, as well as enhanced oil recovery. The wide range of products cover drilling rigs, cementing units, frac pumpers and coiled tubing systems including the CT unit itself, pumping and nitrogen assemblies, etc. Another area of our activity is natural gas compressor, natural gas liquefaction and LNG/CNG fueling. Moreover, we supply and sell spare parts, tools and accessories to the above equipment. 

CTT: What kind of equipment did your company start with? What was the very first Jereh’s product?

F.W.: Our first products were cementing units in 2003, for China South Sea offshore project.

CTT: Over the ten years of the company’s presence in the market the range of products must have increased many-fold. Can we say that Jereh implements the full cycle of machinery production from design in the Design Office to assembly?

F.W.: Yes, that is correct. Our products are in-house developed from design to manufacture and factory acceptance testing. Besides, our specialists carry out start-up and commissioning on the customer’s site. The quality management system is critically important for high-tech assemblies. Our products are completed with the product management system developed by the company’s specialists which includes management software and a data collection software.

CTT: Please, tell us about your customer relations.

F.W.: Our design engineers when working on a specific order keep a constant liaison with the customer. It allows taking into consideration all of the customer’s preferences and creating the equipment that embodies all of the client’s wishes. I find such customer relations to be very productive. We are always focused on customer needs and exceed our clients’ expectations. Naturally we perform start-up, commissioning, and also offer maintenance services at customer’s request. And afterwards we constantly keep in touch with our consumers, learn their specific needs and ensure timely response. If during operation any design errors are detected, we try not only to correct them but also to improve our future products. This is our modus operandi. Additionally it is important to train the customer’s personnel to operate our equipment. We provide in-house training and after the equipment is shipped we provide additional on-site training dedicated to the specific unit or system.

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CTT: It is not a secret that all world-renowned manufacturers of equipment for high-tech gas and oilfield services use in their systems component parts from other producers – their partners. Component parts of which producers is used in Jereh’s equipment?

F.W.: Our policy in this area is similar to the policy pursued by other producers. For example, we do not manufacture engines but we purchase them from other producers – but only those who are reputed and reliable. So most of our systems have Detroit engines. We have very close cooperation with this company: suffice it to say, there is a Detroit engine overhaul department on our company’s premises. At customer’s request we can mount a Caterpillar engine. The gear box is supplied by Allison.

CTT: What criteria do you use when you choose suppliers of component parts?

F.W.: The main criterion for choosing suppliers of components for Jereh is the reliability of their products. Then we consider their performance.

CTT: What Jereh’s developments are you proud of?

F.W.: for the coiled tubing units, I think the key part is the injector. It is in-house developed and manufactured. Another important development by Jereh is the software for predicting the residual operation life of coiled tubing. We have our own development centers in Houston, US., and Calgary, Canada. We hope it helps our technologies and equipment be always in the frontline.

CTT: Your company is actively penetrating the Russian market. Does Jereh have any developments specific to this market?

F.W.: The Russian market is particular and naturally we use a customized approach. For eight years now we have accumulated and pooled the experience of equipment operation in the high north. Most importantly the equipment should withstand low temperatures. Another challenge is to ensure operational comfort for the operator. We have a special design team who develop equipment specifically for Russia and CIS. It is difficult to overestimate the importance of aftersales services which is why at present and together with our Russian partners we are building a service center and intend to expand the warehouse of spare parts here. The Russian market is very important to us. We hold local specialists and their skills in high respect. They work in harshest environment to make their country richer. They are doing a great job!

CTT: In what kinds of product does Jereh, in your opinion, hold the leading position?

F.W.: Our company is the leading producer of equipment for well servicing and enhanced oil recovery. Our cementing units and fracking equipment are in high demand. Since 2011 the number of orders for coiled tubing has been increasing. Over that period we have produced around 120 units. Integrated solutions are very important to gas and oilfield service companies specializing in certain kinds of operations. With this in mind Jereh tries to supply not only separate units but also assemblies. Specifically, in case of coiled tubing units we offer nitrogen and pumping systems and acid tanks as auxiliary equipment.

CTT: Could you define the main principles of Jereh’s policy?

F.W.: I’m going to define it using the example of coiled tubing. In total there are six principles. Firstly, we produce quality and reliable coiled tubing units. Secondly, for the coiled tubing unit to operate successfully auxiliary equipment is needed. That’s why we offer integrated solutions to our customers. Thirdly, our systems are completed with downhole tools for coiled tubing. They are produced by the joint venture with our American partner. Fourthly, we have our own software both for collecting data and predicting the residual operation life of coiled tubing. Fifthly, blowout preventers. Together with our American partners we have joint production of preventers. Sixthly, we have a well-organized training program for customer’s specialists on how to operate our equipment. I have already given details about it before. I can add that we have developed a training simulator which sets a wide range of tasks from standard operation modes to emergency modes.

CTT: On which markets Jereh’s products are represented most?

F.W.: At present our products are marketed in sixty regions worldwide with the largest shares in such regions as North America, Central Asia, Russia and CIS.

CTT: What do you think of competition in the market? Is it an obstacle or rather a growth driver?

F.W.: Competition in the market where we operate in is very high. But we believe it is a good thing. Competition promotes better quality control, closer cooperation with our customers and taking into consideration all of their preferences and better aftersales services. Competition helps us implement our creed – strive to be the best and always keep moving forward.

CTT: One of the indicators of a company’s success is its renowned customers. If it is not a secret, what customers is Jereh proud of?

F.W.: Jereh’s products are used by many renowned oilfield service companies, e.g. Eriell Service – a company alongside which we have been developing and which has been cooperating with us since our establishment. We have cooperated with many international heavyweights.  We supply coiled tubing to a joint venture between Halliburton and the Chinese company CNOOC OTIS. The CT rigs are explosion-proof and are capable of working both onshore and offshore. We also supplied fracking equipment, cementing units and logging hoisters to world major players.

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CTT: Our interview is taking place in the Expo-Center on Krasnaya Presnya during Neftegaz-2014. How valuable do you think Jereh’s participation in this event is?

F.W.: We believe it to be a lucky strike. Our stand is visited by many professionals whom we talk with. We have brought along three large assemblies: a coiled tubing unit, a cementing unit and a nitrogen and pumping units mounted on a single trailer and operating under single control. I think for now such an assembly is one-of-a-kind in Russia. Hopefully it will impress the customers with its cost effectiveness. I would also like to stress that after signing the historical long-term gas supply agreement between Russia and China the relations between our countries have strengthened even more which is welcoming.

CTT: On behalf of our magazine allow me to thank you for your sincere answers to our questions and wish Jereh success in its development.

F.W.: Thank you for the opportunity to talk about our company and its products. I wish Coiled Tubing Times prosperity.

 

The interview was conducted by Marina Kulikovskaya, Coiled Tubing Times