Discovering EDC

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EDC is the largest independent oilfield service company in Russia. 

Since its formation in 2004, EDC Group has been competing successfully in the markets of drilling and oilfield services and has been recognized by the major oil companies as the leading provider of such services.

Our investment case is predicated on the following six key factors:

  • Leadership

    We have built a market leading position in one of the world's leading oilfield service markets. We have achieved this by focusing on process and service innovation, by investing in our rig fleet and our people and by concentrating on what we do best.

  • Secure fundamentals

    Our core market environment is less volatile than other major drilling markets globally, as the contractual model in Russia favours longer-term agreements with our key customers.

  • Growth

    EDC currently enjoys multiple growth opportunities:

    • Core market - Despite the recent general decline in the drilling services market, the Russian government's desire to at least maintain current oil production will require ever more aggressive drilling and, based on estimations made before the OPEC+ production cuts, we believe this provides underlying market volume growth of 5% to 10% per annum in our core onshore market in Russia up to 2024.
    • Greenfield - declining prospectivity in Russia's mature brownfield regions is spurring exploration and development in the more remote, more challenging greenfield regions and these require more advanced equipment and more complex solutions, for which our younger, heavier rig fleet and expert rig crews are ideally suited.
    • Offshore - we have built a leadership position in the Caspian Sea jack-up market, owning four of the six active jack-up rigs. With the current activity in exploration and production drilling we expect this market to remain at the current level or increase in the future.
    • International - we see excellent opportunities to expand in the MENA region, a market with many parallels to Russia, chiefly via acquisition. We have 5 rigs in Iraq and perform drilling services for international oil and gas companies in an improving market with the oil price coming back and the recent improvement of the security situation in the region. 
  • Higher value for our customers

    The core to our success has been our focus on delivering the best solutions to our customers. We operate in an increasingly competitive market and we believe that investment in our rigs and our crews and development of partnerships with best-in-class service providers has significantly enhanced the customer proposition.

  • Efficiency

    EDC has long experience of driving operational efficiencies and competing successfully with the top players in the markets of drilling and oilfield services since our formation. We have significantly increased metres drilled per crew per day since 2005 and have one of the best health and safety records in the industry. We constantly strive for greater efficiency, seeking to improve rig utilisation, minimize downtime and Lost Time to Injury.

  • Commitment to strong financial results

    Our leadership position, focus on improving efficiency and prudent financial management will allow us to continue to deliver strong financial results.  We follow closely the trends in the world markets and, keeping in mind the needs of our customers, are shifting towards the corporate model “One operating company with multiple branches”.

    We are committed to retaining a strong balance sheet, allowing us to meet the challenges in the volatile markets, while preserving the flexibility in addressing the customers’ requests relating to the organization of work, as well as the contracts structure.