Jereh is an international integrated oil and gas company, working in more than 60 countries to maximize the potential of every operation, be it EPC services, oilfield technology services, or equipment manufacturing. Romania is one of the few European markets where Jereh strongly believes that can provide with reliable solutions and strategic partnerships, related to both upstream and downstream. „It is actually the perfect time to enter the European and especially the Romanian market”, said Vitalie Mîrza, Business Development Director Jereh Petroleum Equipment, for energynomics.ro.
For those that need to be acquainted with your company, what does Jereh Petroleum Equipment do the best? What are the business lines, and of them, which are more profitable?
Jereh is an international integrated oil and gas company specializing in Oil&Gas EPC services, oilfield technology services and equipment manufacturing. Through 17 years of development, Jereh has built strong industrial advantages. Today, seven global R&D centers staffed with over 1,200 professional engineers are supporting Jereh’s technical innovations and long-term leadership in the industry. And with field proven products and services, Jereh is working in more than 60 countries to maximize the potential of every operation.
“Focus on customer needs, value employee dedication, continuously improving to be the best”, expresses Jereh’s universal understanding of what it does. Over 5,000 employees are committed to creating value for customers, impacting the prosperity of the community, producing return for investors and securing growth for the future. Facing the challenges of the industry, Jereh will continue to offer the best solutions and technology to help customers optimize their investments and thus make energy E&P more safe, reliable, efficient and eco-friendly.
Our products are Drilling and Workover Rig, Intervention and Stimulation Equipment, Well Completion Equipment, Gas Compression Equipment, Gas Treatment and Processing Equipment, LNG and CNG Fueling Equipment.
As the first Chinese company to be accredited with API and QHSE management system certification, Jereh is constantly pushing the boundaries of technology to produce value for our customers while still maintaining the strict standards of industry. Jereh acts upon its responsibilities with the most current technology and methods, working to achieve a balance between nature and industry in all its projects, from reservoir evaluation, development planning and design to well drilling & completion services as well as construction services.
Is this a good time to approach the Romania and European market more? On what fundamentals do you support this decision, and what are elements that Jereh has in its favor to succeed?
It is actually the perfect time to enter the European and especially the Romanian market. Due to the low prices of oil and gas, all European companies are looking for a strong reliable partner in order to develop their projects and Jereh suits perfectly all the demands. As a world leading oil and gas equipment manufacturer, Jereh is at the cutting edge in providing integrated equipment solutions and compact modular products for its customers. It also constantly achieves breakthroughs in unconventional and offshore fields. From arctic regions to tropical rainforests, from onshore to offshore, Jereh’s reliable equipment has been operated in different sectors around the world, including cementing, fracturing, coiled tubing, nitrogen pumpers and gas compressors. Partnering with customers, Jereh is working hard to address challenges and facilitate the accessibility of energy. Each year we invite our clients and partners to visit Jereh production facilities and R&D institutes in order to prove that we are a reliable partner that will add value to any project.
In your conception, how will the oil market close this year? Can the operators hope that this low price period is going to end in 2016 so they can start earning like they used to?
Oil and gas market has a cyclic development in order to allow stable companies like Jereh to grow and consolidate the trust of all existing partners. This year will definitely not bring some significant changes to the existing prices, but will lead to stronger partnerships for those who have the power to resist. This area is very much dependent on the geopolitical situation worldwide, especially on the one related to oil and gas producing countries.
Jereh is investing huge resources in R&D institutes. As we strongly believe that companies that develop new technologies for oil and gas processing will be able to register high earnings in any period of the market.
What do you want to achieve in Romania, how exactly do you plan to gain a strong position in the market? Are you targeting joint ventures with already established oil field operators, are you planning to make an acquisition?
Romania, just as Norway, is the only European country that is fully independent from any oil and gas import. This is why Jereh strongly believes that we need to concentrate more on this market, through reliable solutions and strategic partnerships with other local companies, related to both Upstream and Downstream.
Jereh is one of the few companies worldwide that developed new technologies for gas processing like GTL (gas to liquid) that allows producing liquid fuels from natural gas. We had already several meetings with local companies that operate onshore and offshore oil and gas fields. We discussed both, partnership and acquisition that could afford us a faster consolidation on European market. Romania has a long history in this area and Romanian professionals are highly appreciated worldwide; this is why we believe that soon we will proudly announce our first important local partnership.
Apart from cutting costs (with personnel, with investment programs etc), what other choices do the oil companies of today have to become truly low cost producers? More importantly, is there a way to go back to a low cost production period?
Chinese companies are well known for offering attractive prices for high end technologies and reliable services. Jereh has an additional advantage as we gained the reputation of a trusted equipment and service provider on challenging markets like USA, Canada and Middle East. Even if we are a private company, we are the only company recommended by the Chinese government as a highly trusted integrated solutions provider.
Also Jereh has a triple A rating from all financial institutions from China, this is why we can support any project with very attractive financial solutions. Our partners can benefit from all this advantages and develop even the most enthusiastic projects, despite the low cost of crude oil.
Is Jereh starting to think about allocating resources to other energy sectors that look to have more support from policymakers and civic society (for example in renewables, equipment used for environmental services)?
Safety is considered as everyone’s responsibility in Jereh. Safety always first! Every team member in Jereh shall be responsible for the safety of himself as well as the others. Zero RI (recorded incident) is our target.
We have a strong environmental policy and developed a new service dedicated to this: Oil storage tank mechanical cleaning! It is to use dedicated mechanical cleaning equipment to jet the cleaning medium into the tank under certain temperature, pressure and flow. Then the sediment inside the tank can be stirred, crushed and dissolved. And hydrocarbon can be recovered. The internal surface of oil tank can be cleaned completely. The congelation and residue can be cleaned to allow for hot work. Above 95% of organics in the tank can be recovered. Whole enclosed physical cleaning will not cause pollution to environment.
Every year Jereh donates important resources to environmental projects, and invests millions of dollars for research and development of eco-friendly technologies.
The full version of this article can be read in printed edition of energynomics.ro Magazine, issued in May 2016.
In order to receive the next issue (September 2016) of energynomics.ro Magazine for free, we encourage you to write us at office [at]energynomics.ro to include you in our distribution list.