China Oilfield Services Ltd (COSL) has secured a two-year contract from Thailand's PTTEP for onshore drilling services. The contract scope includes directional drilling, drilling measurement, logging while drilling, and rotary steerable technical services for onshore wells in Thailand. The specific projects and contract value were not disclosed.

Significance of the Contract

This contract is significant as it sets a new record for the value of overseas service projects utilizing COSL's self-developed "Xuanji" rotary steerable system. The company stated the contract is important for advancing high-quality energy cooperation for Belt and Road countries. Furthermore, this marks the first time the Xuanji system has independently participated in an international oil company's technical service tender. Prior to the tender award, the system completed trial operations on three challenging wells for PTTEP.

About the Xuanji System

The Xuanji system is a proprietary technology developed in 2014, comprising the Welleader rotary steering drilling system and the Drilog logging-while-drilling system. It enables precise control of directional drilling during rotation based on well design, while providing real-time wellbore trajectory measurement and formation evaluation. The system achieved commercialization in 2023 and has since been deployed at Indonesia’s Gemah field and Iraq’s Missan oilfield. At the Missan oilfield, it reportedly drilled through 17 complex lithological formations and achieved a single drilling depth of 1,056 metres, setting a new record.

COSL's Recent Activity and Plans

In 2024, COSL also won a separate three-year contract from PTTEP for its jack-up rig COSLSeeker. The company has stated plans to expand its international presence and core technological competitiveness.