ODMCoin oil service company is developing mobile complexes to process oil drilling mud wastes into building material for roads
Tyumen. Tyumen oil service project ODMCoin has become the world's first blockchain investment option in the oil and gas sector. Its main goal is manufacturing environment friendly technologies for subsoil users, to be more precise, manufacturing innovative equipment for processing drilling cuttings. Alexander Doronin, the CEO of the project, in his interview to Oil and Gas information Agency spoke about mobile complexes that allow not only to dispose of drilling waste properly, but also to produce construction materials out of them. He also spoke about the use of digital technologies in energy industry.
- Where did the idea of recycling drilling cuttings come from?
- The idea of the project came from a specific problem, which is a large accumulation of drill cuttings in the oil fields in Russia. Currently, there are over 150 thousand tons of drill cuttings kept in the waste pits. It will take approximately 50 years to dispose of them. In addition, however good the pits are, the sludge seeps into the soil and contaminates it as well as the groundwater. That is why we turned our attention to the method of pitless drilling when drilling mud gets directly straight into a special container, where it is processed, disinfected and becomes the raw material for producing the road construction material of the 5th category. It is almost ready construction material, which is used in the oil fields.
The key point that pushed us to implement the project is the decision about waste treatment by 2030, which is now being reviewed by the government.
- Does it mean that the current year of environment will become a turning point in solution of environmental problems and subsurface use in particular?
- In my opinion, this year was initiated in order to make serious steps in terms of environmental protection. For example, to bring the regulatory framework in this sector in order. The mentioned resolution has been in development for a very long time. There will be strict regulations for oil companies too, but there are not so many companies that deal with waste management. Therefore it is time to think about technologies in this field.
- Tell us about the mobile complex for drilling wastes processing.
- This is a complex that consists of three basic units. The 1st unit disinfects water, as about 60% of the sludge may consist of toxic water. Thus, we receive technical water, which is then used in the field to inject into wells, for example. The second unit processes the cuttings. The equipment was built in 2013 in Ufa, and then it was tested, certified and got a patent. And finally, the third unit is used to produce road construction materials of the 5th category.
At the moment the processing of drill cuttings is done by means of chemicals. However, it has a number of drawbacks associated mainly with the low temperature conditions of Western Siberia that allow to process and dispose of oil drill cuttinggs only in warm period which is only about 5 months a year. To solve this problem, we developed indoor mobile units which are heated and can be operated during 8 months, including winter period at temperatures down to -45 C. The main advantage of the complex is its mobility. There are a lot of small pits on the oil field that is why it is convenient to bring the unit to the field, dispose of the cuttings and move it to another place.
- What is the state of readiness of the complex?
-As I have already said, the first two units are ready and are waiting to be assembled, and the third unit will be manufactured in Tyumen. This investment project will give the jobs and tax revenues to Tyumen region. As soon as we have the money for its implementation, the regional government will help us with administrative matters.
- Tell us how you plan to raise funds to implement the project and start full-scale production?
- We use cutting-edge financial technologies, in particular, we raise funds through the blockchain platforms and our company is on ICO. In other words, we attract the global funds, like cryptocurrency, to our project. In addition, we have a unique opportunity to raise money needed by releasing our token and we plan to attract investment by selling them.
- How successful is the promotion of the company with modern methods?
- By this time we have held preICO, which is a preliminary raise of money, to understand the demand for our technology and to see the interest of investors. In two weeks’ time we raised about$ 200,000, sold 4 thousand of our tokens and closed preICO ahead of time, as the required amount of money was raised. The money raised will be spent on an international campaign to raise funds for investment in the manufacturing of building material from sludge.
- What countries are more interested in your technology?
- Over 60% of investments to this project were received from Russia and 40% are foreign. Today, the environmental problem is crucial, that is why our project is interesting to the world community.
- When will you start the main phase of raising funds for the project?
- The main phase of raising funds is going to be in October. We like the blockchain because it is a wonderful way of profit distribution. It is impossible to determine where, to whom and how much is transferred, it is impossible to fake and destroy transactions. We made our token action equal to one tonne of oil sludge. In 2018 we are going to process 25 thousand tons of oil sludge, so we issued 25 thousand tokens. 22 thousand of them we will be sold at the market and it will cost 85 million rubles. This money will let us launch the project.
- And what is going to be next?
- We will manufacture two complexes that will process 1620 tonnes of oil drill cuttings per month. In July of 2018 we plan to get a contract and buy back our tokens from net profit at price of 132$ per share. In June, the investors could purchase our token for 66$. The average income for dividends is 5.5% per month, dividends will be set on a monthly basis.
- Are you the first company in oil and gas sector which has raised money to implement the project with the help of blockchain?
- In ICO, we have become the world's first oil service company, which attracts funds through the blockchain. I think our oil companies need to be actively engaged in this process.
Today, Russia is on one of the leading places if we talk about crypto currency transactions and holding of ICO companies. However, to buy e-money in our country is not as simple as in America. Recently, the Chairman of the government Dmitry Medvedev said that cryptoeconomy will be implemented in Russia, and President Vladimir Putin confirmed this. I think virtual currency will be available in Russia, but it need to be adjusted correctly. In addition, in terms of sanctions, the cryptocurrency is a unique chance to attract investment to our country.
- Share plans of ODMCoin, what are you expecting?
We plan to participate at two conferences dedicated to blockchain. One will be held in Moscow on the 20th of September and another in Dubai on the 27th of September. This will help us to attract investors. And, of course, our main event is ICO, which will be held in October.
We want to draw your attention that ODMcoin oil service company will become the official sponsor of the applied science conference "Green technologies in industry and subsoil use". The event will take place on the 27th of September as a part of the exhibition "Surgut. Oil and gas-2017" where ODMcoin will present mobile complex for oil sludge disposal.