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RFID Addresses Harsh Environment, Tight Regulations in Chinese Oil and Gas Industry

Xerafy is providing its UHF RFID solutions for managing tools and pipes to CNOOC Oil and Gas, off-shore, as well as to PetroChina, at its onshore Junggar Basin site, to capture operation, maintenance and inspection details about equipment use in some of the world's harshest oil-drilling environments.
By Claire Swedberg
Aug 05, 2018

As global oil demand is growing, especially in Asia, Chinese oil and gas companies have been pressured to become as efficient as possible, while also meeting industry regulations and boosting safety. Demand from an energy-hungry economy in China has been increasing as the nation shifts to more domestic supply sources. This growth in oil exploration and drilling for China's own energy requirements is in response to rising import prices, according to a 2015 Deloitte study.

There's nothing easy about some of the geography the country is targeting, however. Oil exploration in places such as China's Junggar Basin means the nation could have access to more oil, but extraction will be in harsh desert, mountainous and off-shore geographies. One way for oil companies to accomplish greater efficiency on their drill or exploration sites is to deploy radio frequency identification, but the technology needs to be functional in that challenging terrain.

CNOOC's primary objective was to improve the company's ability to track the identity, integrity and lifecycle of each pipe.
Traditionally, oil and gas producers have manually tracked information about the maintenance and status of drill pipes, using paper forms. This isn't practical when it comes to tracking tens of thousands of pieces that are often used in remote locations, however. For this use case, RFID provides a benefit.

Case in point: China National Offshore Oil Corporation (CNOOC) and PetroChina Co. are deploying UHF RFID-based systems from Xerafy to ensure that they can put their hands on assets easily, when needed, while also maintaining a record of the maintenance and inspection histories in some of China's most difficult terrain.

"We've seen trends of increasing need and urgency for better tracking of drilling assets with RFID," says Dennis Khoo, Xerafy's founder and CEO. Furthermore, he says, there has been a trend to use real-time data to improve operational efficiency, comply with industry regulations, enhance oilfield operational safety and reduce asset-management costs.

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