BR NEWSPAPER - EN

BIDDING AT THE DRILLING SERVICES

«Drilling solutions» newspaper staff provides their readers with the analysis of the bidding and procurement processes at the drilling services market during first half of 2017.

If we discuss Kazakhstan procurement analysis as reported on reestr.nadloc.kz site, we see that since January up till July 2017 drilling services companies have launched bidding requests for 7.63 bln KZT (hereinafter without VAT - edit.). We have based our analysis on three main drilling methods - RC-drilling, core drilling and blast hole drilling. If we compare today’s amounts with the figures as of 2016, we can see that in January- July of the last year purchase volumes were significantly more - 33 bln KZT. However most part of this amount was dedicated for blast hole drilling (29 bln KZT, including 22 bln KZT from one single company, «Bakyrchikskoye GDP»). So considering «blasting» character of the last year purchases, we may say that RC-drilling and core drilling volumes have not changed much.

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Within overall amount of the requested goods, works and services (GWS) most part was dedicated for core drilling - 4.150 bln KZT, while share of RC-drilling was 2.29 bln KZT, share of blast hole drilling was 0.74 bln KZT and other/ mixed drilling - 0.06 bln KZT

Comparing to the last year reverse circulation drilling has got a bit decreased. During January- July 2016 more than 3 bln KZT were spent for this type of drilling. However in general RC-drilling shows good results by both money spent and work volumes declared.

Minimum work load with this technology used is 310 running metres - that was a tender from «Ertis Nugrim» TOO (2017.ЦП-150762. - hereinafter tender code is provided as per NADLoc). Maximum rate for this tender as announced by the company was 16500 KZT per running metre. Maximum work load with RC-drilling technology was 242 764 running metres - for the bid from «Komarovskoye gornoye predpriyatiye» (2017. OK-163168), however winning price for this tender was not defined. In a meantime, average winning value of the reverse circulation drilling was 7036.83 KZT per running metre.

Companies announcing tenders were interested in core drilling technology most of all. Let us quickly remind that cost of the service in this case depends on the diameter of the drilling (BQ, HQ, NQ, PQ). This year minimum NQ winning value was 15 022 KZT per running metre (2017.OK- 163925, company - «Vostoktsvetmet» TOO, while maximum was 16 911 KZT (for the tender 2017. OK-144365 from «Varvarinskoye» JSC).

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As for diameter was 17 555 KZT per running metre. That was the price paid by «AK Altynalmas» JSC for the core drilling service for the exploration wells at Kariyerniy deposit (2017.OK-155701 (П). Drilling services with gradually decreasing diameter - from HQ up to NQ - is requested more and more.

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On average, this type of work costs from 16 189.5 up to 22 322 KZT per running metre. This technology is used by such companies as.

«Technogran-Aktobe» (2017.OK-164119), Golden Compass Jambyl (2017.OK-150971), FML Kazakhstan (2017.SEZ-164378). Average winning rate for this type of drilling is 18 282 KZT per running metre.

Among hundreds of the bids posted on tender portal we can highlight a specific one. Bidder has requested drilling services with two technologies used at one time - core drilling and RC-drilling (2017.OK-163780). Company was «ALAYGYR GOLD» TOO. Winning rate of the mixed services was 7650 KZT per running metre.

Blast hole drilling is still higlhy demanded. Though to be honest it’s not easy to trace the dynamics of the rates in this field, because bidders can calculate work loads in both cubic and running metres. We have selected the latter one, as it is more often used in tender documentation. Maximum financial amounts prospected for blast holes drilling with tricone rock bit at Sokolovskiy and Sarabiskiy careers (company-bidder was Sokolovsk-Sarbaisk Mining and Processing Plant) was 210.8 mln KZT (2017-OK-163376). Winning rate for that tender turned out to be a lot lower - 140 mln KZT. Minimum financial amount was also prospected for seam drilling at Vasilkovskoye deposit - 10 124 mln KZT. Bidder was «Altyntau Kokshetau» JSC

(SPOD.2017-OK-42427). As for the range of the rates for blast hole drilling in 2017, average winning rate per running metre was 3132.0 KZT. Tender results analysis let us identify the most active companies which lead the market. Within first half of the year we can have the following five participants included into the list of the strongest bidders: «Komarovskoye gornoye predpriyatiye», «Varvarinskoye», «AltynEx Company», «KAZ Minerals Bozshakol»,

«KAZAKHALTYN» Mining-metallurgical concern (table «Top-5 winners of the drilling services tenders as per the cost of the services provided»). For some of the above mentioned lots there will still be open re-tendering or purchase «from single source».

Let please also remind that the values and rates we have presented are to be considered relative, provided technical specifics of the drilling services (depth of drilling and types of the works).
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