LUKOIL manages digital wells

LUKOIL manages digital wells


LUKOIL is one of the largest publicly traded vertically integrated oil and gas companies in the world, accounting for more than 2% of global oil production and about 1% of proven hydrocarbon reserves. The company employs 100 thousand people who produce products for millions of people in more than a hundred countries around the world. The company manages a huge geographically distributed infrastructure, which is often located in places that are difficult for people and equipment to reach.

Oil-producing wells, which are located, say, in the regions of the Far North, can present unpleasant surprises. If an accident occurs at such an object, it may take days to eliminate the consequences. Oil companies cannot keep a staff of highly qualified specialists in each such area nearby, who are able not only to cope with emerging emergency situations, but also to anticipate and prevent them in advance. It can also be difficult to quickly transmit information to the situation center: for example, when an emergency situation occurred at the Aspinsky field in the Perm Region, there was no GSM connection, which significantly complicated the collection of information.


Rostelecom together with LUKOIL has launched a pilot project for remote monitoring and management of oil and gas equipment. The development was implemented at the Aspinsky field in the Perm Region. Hard-to-reach production facilities transmit a set of data that allows oil workers to quickly monitor the operation of equipment, as well as remotely control it.

Rostelecom has organized an industrial Internet network using LoRaWAN technology at the Perm Krai field. This wireless network allows all “smart” devices to work within a radius of 20 km from the base station in this territory.

A digital duplicate of the well is created in the control center, which records the specified parameters of the object (pressure, temperature, gas content) and allows the operator to control the well from a distance. If more accurate measurements are needed, the number of well or pipeline parameters can be increased to dozens, and the per-second frequency of data collection can also be set. Thanks to the automation of processes and control over remote objects, the managing staff can see what is happening at any time, react to an emergency situation and predict how the results will change, said Sergey Gusev, director of the macro-regional branch of the Ural branch of Rostelecom.


“The digital transformation of fields allows us to reduce the cost of oil production and conduct online monitoring. We will significantly optimize the data acquisition processes, increase the efficiency and safety of production, “said Oleg Tretyakov, representative of the President of PJSC LUKOIL in the Perm Region.

Rostelecom has been implementing turnkey technologies of the industrial “Internet of Things” (IIoT) for the oil and gas market for several years: from communication channels to platform solutions. This is a trial balloon for Rostelecom, and it is also the first project in the country implemented on domestic equipment, the representative of the operator said.

According to CB Insights, the volume of the industrial “Internet of Things” market in the world will reach trillions of dollars by 2020. Since 2013, 27 companies working in the field of IIoT have received $575 million of investments from oil and gas sector enterprises. The largest investors in IIoT projects are Shell, which has invested in 6 projects, followed by Engie, which has invested in 5 startups, and Total is in third place.

According to, the global market size of IIoT solutions in the oil and gas sector will reach $39.4 billion by 2023. IIoT solutions allow oil and gas companies to accelerate global territorial expansion, as they make it possible to manage any objects in real time, regardless of how far they are located, the researchers say.

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