Finn-Russian Company Eyes Indian Market, Tests AI Solution to Boost Oil Well Production

ZYFRA Group, Finnish-Russian AI and IIoT solutions developer for industries has successfully tested the ESP software unit, designed to enhance the efficiency of oil extraction by boosting oil well production rates by 1.5% with no additional capital investment.

The electrical submersible pump (ESP) software unit is operational now for more than three months on 500 oil wells in Western Siberia, Russia, which claim an additional profit of $2 mln and growth in production of 1,5%.

It is equipped with artificial intelligence to provide recommendations based on historical Big Data analysis. The unit recommends a mode of well operation that will ensure the maximum oil flow rate for a certain period of time and provides for stable operation during that period by analyzing current frequency, gauged oil flow rate, periods of intermittent pump operation and other operating parameters.

The highest demand for the ESP software unit is expected from Russia, India, US, Canada and countries, where there are large numbers of brownfields.

Dmitry Krikunov, ZYFRA’s AI team leader in the oil & gas sector, said that scientists regularly claim that the era of oil will end soon and that readily available hydrocarbons are almost exhausted. The digitalization of the oil & gas industry will help simplify the extraction of hard-to-recover oil while at the same time extending the lifespan of the oilfield by more than one decade.

He said that the primary motivation for investing in digitalization is to improve efficiency. According to Gartner, the ‘smart oil deposit’ concept could help oil companies to cut costs by 5% and enhance production volumes by 2%. CERA calculates that ‘smart oil and gas deposits’ could cut production costs by 1–6%, shrink oil-well downtime by 1–4% and reduce labour intensity by up to 25%.

ZYFRA aims to take a $366 mln share of the global market of digital solutions for the upstream oil & gas industry with its new AI equipped electrical submersible pump (ESP) software unit. The total global market in this sector is valued at up to $8.9 bn.

ZYFRA has cumulatively earned more than $3 million from India-related deals. The company plans to enhance its presence in the Indian market and reach the target of $50 million in deals by 2021.

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ZYFRA is a Finland-based company with an R&D center in Russia, which provides IoT and AI-based solutions for the industrial sector. The company is operating in Finland, Russian, China, India, Singapore, Bulgaria, Romania, Peru. In 2018 ZYFRA Group revenue was $26 mln.

ZYFRA has cumulatively earned more than $3 million from India-related deals. The company plans to enhance its presence in the Indian market and reach the target of $50 million in deals by 2021.

ZYFRA has launched 17 pilot projects in India with its major partners like Spudweb, Parivartan Automation, Abcon Group, Wimera Systems and OJB Engineering from the defence, aerospace, petrochemicals, metallurgy and mining fields, the statement said.

According to Zyfra, the Indian information and communications technology (ICT) market is expected to touch $225 billion by 2020, representing a growth rate of 11 percent annually.