How CNOOC Supports Its Offshore Output Targets

Updated: Nov 24, 2020

Xerafy has been selected by China’s largest offshore oil producer to deploy its downhole drill pipe management technology.

COSL drilling platform (Photo Xinhua)

Founded in 1982, CNOOC is the third-largest national oil company in the People’s Republic of China with revenues in excess of $19 billion. CNOOC and its subsidiary, China Oilfield Services (COSL), selected the Xerafy Xplorer as the world’s first UHF RFID tag, ATEX-certified, designed for use in downhole drilling operations. The deployment of 100,000 Xerafy Xplorer tags will align with the 10 percent year-over-year growth rate of oil output targeted by CNOOC.

For CNOOC, the Xplorer tags will improve the company’s ability to track both the identity, integrity and lifecycle of each piece of equipment, as well as how long the asset has been in service and what maintenance / repair work has been conducted. Traditionally, this information has been tracked manually by oil and gas producers using paper forms. By automatically tracking the complete asset lifecycle, CNOOC can anticipate when parts will need replacement in advance of a failure, which can significantly improve safety on the deep offshore and onshore well drilling platforms.

Drilling pipes tagged with Xerafy Xplorer at COSL warehouse in Northern China

With improved maintenance, the drill pipe assemblies will also have a longer lifecycle. This will reduce both the need for additional inventory, as well as equipment and maintenance/repair costs.

“The deployment of Xerafy’s RFID technology is an extension of CNOOC’s focus on technology-driven innovation and efficiency enhancements,” said Michel Gillmann, Director Product & Marketing at Xerafy. “By enabling real-time tracking of their drilling assets, they can improve and ensure the safety at their offshore platforms as they expand production around the world.”