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2 URALMASH OIL AND GAS EQUIPMENT HOLDING

About Holding

Founded in June 2010, today “Uralmash Oil and Gas Equipment Holding” LLC consoli-dates several enterprises manufacturing drilling and oil and gas equipment, being the biggest national company producing drilling rigs for development and deep exploration drilling.

The main production facilities are situated at three enterprises: CJSC URBO (Ekaterinburg), OAO Neftemash Petroleum Machinery Plant (Otradny), OAO Plant of modular packaged units (Tyumen). The engineering divisions are localized at the branch of “Uralmash Oil and Gas Equipment Holding” in Ekaterinburg and at Neftegasengineering LLC (Volgograd). Service en-terprise Uralmash-Techservice LLC is also a part of the company which offers a full range of works for drilling equipment maintenance.

A strong engineering center combining the unique experience of the soviet design school and ability of designing up-to-date high-tech equipment using innovative solutions is one of the competitive advantages of “Uralmash Oil and Gas Equipment Holding”.“Uralmash Oil and Gas Equipment Holding” LLC has a full cycle of drilling equipment produc-tion.

Due to a large-scale production modernization, realized with the fi nancial support of our stra-tegic partner GPB (OJSC), a considerable technological and technical qualitative growth is ensured at all the stages of the drilling equipment production.

As the result of this program realization, today “Uralmash Oil and Gas Equipment Holding” has one of the best in the country production base for manufacturing of a wide range of drilling equipment. Financial possibilities of our strategic partner GPB (OJSC) allow implementing dif-ferent fi nancing schemes of equipment delivery.

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Product line

Currently, “Uralmash Oil and Gas Equipment Holding” produces customized modern

drilling rigs for deep exploration and production drilling of 160 to 600 t load capacity

according to all the industry safety rules.

Besides drilling rigs packages “Uralmash Oil and Gas Equipment Holding” produces

separate drilling rigs units, drilling equipment spare parts, implements drilling rigs upgrade

projects, and also renders a wide range of services.

“Uralmash Oil and Gas Equipment Holding” product line also includes modular packaged

equipment: block boxes, oil pumping stations and compressor stations, cluster pump sta-

tions, boiler plants, accommodation buildings, etc.Structure of orders received, 2012-2014

Cluster drilling rigs

Land drilling rigs

Mobile drilling rigs

Spare parts to drilling rigs

Upgrade of drilling rigs

Other products and services74%

4%

11%

5%2% 4%

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Corporate structure“Uralmash Oil and Gas Equipment

Holding” LLC Managing company, Moscow

Branch of “Uralmash Oil and Gas Equipment Holding” LLC in Ekaterinburg

Neftegasengineering LLC Volgograd

CJSC URBO Ekaterinburg

OAO Plant of modular packaged units Tyumen

OAO Neftemash Petroleum Machinery Plant Otradny

Managing of all the enterprises of Holding

Engineering center and managing division for all the engineering

Engineering and production of customized drilling rigs packages

Manufacturing and assembly of 25-30 drilling rigs packages a year

10 000 t/year of welded metal structures

5 000 t/year of welded metal structures

Uralmash-Techservice LLC Moscow

Drilling equipment overhaul, upgrade of drilling rigs and equipment, inspection and technical diagnostics

of oil and gas equipment, rig assembly and con-struction works, etc.

Service

Drilling equipment production

Engineering

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• Due to the high quality standards and professionalism of the personnel, “Uralmash Oil and Gas Equipment Holding” LLC is a steady and reliable manufacturing company, holding more than 50% of Russian market of heavy drilling rigs for development and deep exploratory drilling.

• From the moment of the company foundation in 2010, annual turnover increased more than two times, more than 90 drilling rigs were shipped to customers.

• At the end of 2012, CJSC URBO — the main production division of the company “Ural-mash Oil and Gas Equipment Holding” confi rmed the Quality Management System compli-ance to the requirements of ISO 9001:2008, АРI Sрес Q1 international standards in the scope of engineering, production of drilling rigs, drilling equipment sets, drilling rigs units and spare parts.

• At the beginning of 2013 rating agency «Expert RА» assigned a credit rating to “Ural-mash Oil and Gas Equipment Holding” at level А+ (a very high level of borrowing capacity). Outlook is «stable». Stable outlook means a high probability of keeping the rating at the previ-ous level in the mid-term. At the beginning of 2015 «Expert RА» confi rmed “Uralmash Oil and Gas Equipment Holding” credit rating A+.

• In 2013, “Uralmash Oil and Gas Equipment Holding” published a new redaction of the book “Drilling complexes”. This book contains information about modern national technologi-cal complexes for oil and gas wells drilling. The book is written by specialists of “Uralmash Oil and Gas Equipment Holding” together with Urals State Mine University and Gubkin Russian State University of Oil and Gas and it is admitted as a textbook for students of oil and gas specialties of higher educational establishments. This book publication is a follow-up of the cooperation between “Uralmash Oil and Gas Equipment Holding” and specialized higher edu-cational establishments, it is aimed at the development of the national oil and gas machine-building industry.

• In 2014, “Uralmash Oil and Gas Equipment Holding” produced the fi rst made in Russia Top Drive System of 320 t load capacity.

Our achievements

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Engineering and design are the key competence of “Uralmash Oil and Gas Equipment Holding” LLC

Drilling equipment engineering process fully conforms to ISO 9001:2008 standard.

Holding implemented a unifi ed computer system of the drilling equipment technology mainte-nance process from the stage of Technical Design Assignment preparation and design develop-ment to the stage of delivery to Customer and after sales maintenance.

Engineering center works in two directions:

• engineering of drilling rigs and drilling equipment sets under the operating contracts;• research-and-development activities.

During research-and-development activities, all the current needs of the drilling equipment mar-ket as well as his development trends in prospect are considered, the advanced machine build-ing technologies are used.

Since 2010, new drilling rigs projects are developed and executed — МBU 2500/160 D, МBU 3200/200 DER, BU 4000/250 EК-BМC, BU 5000/320 EК-BМC, BU 5000/320 ESК-BМC, BU 6000/400 EК-BМC «Arktika», BU 6500/450 BMC, and also different projects of old drilling rigs upgrade ЗD-76, 4E-76.

Engineering

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Service

Drilling rigs service is one of the main business areas of “Uralmash Oil and Gas Equipment Holding”.

“Uralmash Oil and Gas Equipment Holding” offers the full range of drilling equipment ser-vices from instruction and training of specialists for drilling companies ensuring maintenance of the equipment at the fi elds to forming service divisions and spare parts warehouses in the main oil and gas producing regions of Russia.

Main types of services:• training of drilling companies personnel ensuring maintenance and operation of mod-ern Russian drilling equipment;• maintenance of drilling equipment;• industrial expert review and diagnostics;• overhaul, current, and emergency repair of drilling equipment;• derrick assembly and construction works;• supply of necessary material and technical resources including drilling equipment spare parts to drilling and service companies;• upgrading of obsolete drilling equipment.

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Totally in the period of 2010-2014, more than 90 drilling rigs of 160 to 450 t load capacity were shipped to customers.

Completed projects

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Main customers

“Uralmash Oil and Gas Equipment Holding” prod-ucts customers are all the main drilling and oil service companies of Russia and CIS countries.

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Drilling equipment engineering and production process is certifi ed according to ISO 9001:2008, АРI Sрес Q1.

Certifi cates

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Our advantages

• Solid business reputation;• Reliable fi nancial support of the strategic partner;• Strong engineering center;• Own production capacities;• Own maintenance service;• Different fi nancial schemes of equipment delivery;• Equipment sales from the warehouse.

Contacts

“Uralmash Oil and Gas Equipment Holding” LLC

117036, 60-letiya Octyabrya, pr., 21, bld. 4, Moscow, Russia tel.: +7 (495) 783-05-67, fax: +7 (495) 783-05-68 e-mail: info@uralmash-ngo.com

Branch of “Uralmash Oil and Gas Equipment Holding” LLC in Ekaterinburg

620012, Pervoy Pyatiletki square, Ekaterinburg, Russia tel.: +7 (343) 270-12-00, fax: +7 (343) 270-12-01 e-mail: ngo@urbo.su

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