China joint venture celebrates 25th anniversary milestone


Thursday, 22 April 2010 09:32

In October 1984, the management of Magcobar (now M-I SWACO) and Nanhai West Oil Co. (now China Oilfield Services Ltd.) joined forces to create a drilling fluids joint venture, China Nanhai Magcobar Mud Corp. Ltd. (MCC), with the aim of delivering world class drilling fluid services to the emerging offshore drilling industry in China. Since that time, MCC has grown to become the most successful international fluids company in China, and one of the longest serving commercial joint ventures in China.

Since the first well was drilled with TOTAL in 1984 in the Beibu Gulf, the company has participated in over 1,000 wells in China in the past 25 years, including world-class extended reach wells, record high temperature wells, the deepest wells drilled in China, and is now dominating the emerging deep­water market in the South China Sea.

MCC has established offices, supply bases and laboratories throughout China and successfully deployed some of the leading fluid technologies from M-I SWACO. The UltraDril* water-base system and the FloPro* NT reservoir drill-in fluid have been excellent performers in the reactive shale and complex reservoirs of Bohai Bay, while the Rheliant* flat rheology synthetic-base drilling fluid is becoming the system of choice for deepwater operators in South China. The UltraDril system has now been used on more than 170 wells in China with the Rheliant system being used on more than 90% of the deepwater wells drilled to date in China. The Versaclean* drilling fluid system has been extremely successful for MCC, helping drill record extended reach wells. In recent times, MCC has established a foothold in the highly competitive onshore market with the MegaDril* one-drum solution.

MCC has worked throughout China, from the far west of Tarim Basin, to the northern extremes of Daqing oilfield, to the oldest and most prolific Shengli oilfield in the east, and down to the deepwater frontier in the South China Sea. Clients have included all the major national oil companies in China—the China National Petroleum Corporation (CNPC), China Petroleum and Chemical Corporation (SINOPEC) and China National Offshore Oil Company (CNOOC)—as well as a vast array of IOCs. Current IOC clients include ConocoPhillips, Anadarko, Husky Energy, EOG Resources, Devon, amongst others.

“To become as successful as MCC has, the company has relied heavily on an outstanding team of field engineers and professionals that has continued to grow and evolve over the years,” China Country Manager David Power said. “MCC has continually invested in training and development of our field engineers since first sending engineers to mud school in Houston in 1985. Over the years MCC has trained over 130 Chinese nationals. The professionalism of the MCC team is highlighted by the current 1,700 plus days without a LTI. We currently employ more than 60 national mud engineers, and most have attended M-I SWACO mud schools in Bangkok and Houston. The MCC team is now more than 93% Chinese nationals.”

M-I SWACO recently celebrated the 25 years of continual service to the Chinese petroleum industry with gala banquets in Beijing and Shekou. Top executives from both companies, including Li Yong, COSL President; Zhang Xing Yun, COSL General Manager and Magcobar Board Chairman; David Paterson, M-I SWACO SVP Eastern Hemisphere; Max Richey, M-I SWACO SVP; and Sandy Park, Magcobar Director and M-I SWACO VP Asia Pacific, were joined by various clients and friends of MCC to celebrate this tremendous achievement.

M-I SWACO and COSL management continue to see a very bright future for MCC as China’s petroleum industry continues to surge ahead. Today more and more IOCs are competing for acreage in China and the Chinese government continues to support development of China’s domestic hydrocarbon resources, in particular the deepwater fields of South China. The team at MCC looks forward to many exciting times and rewarding challenges in the coming years.


Posted on April 22, 2010, in China, Drilling fluid and tagged , , , , , , , . Bookmark the permalink. Comments Off on China joint venture celebrates 25th anniversary milestone.

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