As the scale of the company has expanded, the use and supervision of previous drilling tools were found to not be suitable for some present operations.  A reasonable proposal was put forth designed to strengthen maintenance and use objectives. This will result in making  production more convenient as well as lowering overall costs.

An investigation and analysis was made for the past two years’ use of drilling tools and as well as any issues with the skills and abilities of the supervisors.  As a result, a new policy was adopted by the Tool Department, the “Temporary Practice of Screw Drilling Tools and Fishing Tools”, in which all tools were placed under the supervision of the department.  The Tool Department now coordinates with other departments and registers the use duration with cost for an actual cost calculation that will be charged back to each department.  A follow-up audit will be made in six months.

Once this practice comes out of its trial testing and is accepted and supported by the teams, better cost controls and capital allocations can be expected, thus providing better service for production.

Mr. Teng Yaohui, Department Manager, said that the “rent” chargeback practice is a good way for the improvement of tool supervision and its efficiency is evident.  Bits, collars, and other tools will follow the same supervision manner.