Russian Oil & Gas Service Boom

Tuesday, June 26, 2007
While the recent high-profile problems of the western oil majors’ adventures in Russia have occupied the attention of politicians, the giant Russian oilfield services industry continues to work delivering the products and services that produce the oil. Speaking at conferences in both London and St. Petersburg, executives from energy analysts Douglas-Westwood (DWL) outlined the scale of the opportunities available to investors.

John Westwood, DWL managing director speaking at the SubseaTECH 2007 Conference in St. Petersburg stressed the importance of Russia as an oil and gas producer, “Russian oil production at over 9 million barrels per day is on a par with Saudi Arabia and Russian gas used in power generation is keeping many of the lights on in Western Europe.”

Addressing members of the Energy Institute in London, DWL’s assistant director Steve Robertson stated that, “the oilfield services industry has evolved rapidly in recent years, driven by operators’ increasing use of outsourced services and a move to Western business models. However, the market remains fragmented and further consolidation is expected in the coming years, with independent indigenous companies and western providers playing an increasingly important role.” Analyst Rod Westwood explained that major changes were underway as some of the existing producing regions decline, whilst growth in Eastern Siberia will soar 43% in the next five years.

“Opportunities abound as aging infrastructure such as drilling rigs are overdue for replacement, whilst on the demand-side activity is expected to grow as the new regions prove a far tougher challenge than the ‘easy oil’ previously developed in Western Siberia.

“Onshore oilfield services of seismic, well drilling and workover sectors were a market valued at $11.4 billion in 2006 and we forecast this will reach $22.5 billion by 2011.” Back in St Petersburg, John Westwood told delegates that the new offshore developments in Russia’s arctic waters will stretch the limits of available know-how and will probably need to make use of Norwegian experience of such conditions.

“However,” he said, “this is not all a one-way street and Russia has a considerable track record of leading technological developments for military applications that could well be applied in offshore oil & gas applications.”

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

River Bell Awards Acclaim Maritime 'Family'

The Seamen’s Church Institute (SCI) recognized two inland maritime industry leaders at an annual awards luncheon Thursday, December 11, 2014, in Paducah, Ky.   The

NASSCO Cuts Steel on APT "ECO Tanker"

General Dynamics NASSCO started construction of another ship in its commercial shipbuilding backlog, starting construction of a second “ECO” tanker to be built

BP Faces Heavy Hit from Former Prized Asset Rosneft

BP faces a first and heavy loss from its stake in Russia's Rosneft due to plummeting oil prices and a crumbling rouble, potentially forcing it to write down the value of its once-prized asset.

Contracts

NASSCO Cuts Steel on APT "ECO Tanker"

General Dynamics NASSCO started construction of another ship in its commercial shipbuilding backlog, starting construction of a second “ECO” tanker to be built

Multraship Buys Three More Tugboats from Damen

Multraship and Damen Shipyards Group agreed on three new ASD (Azimuth Stern Drive) Tugs, all for delivery to Multraship in 2015. After delivery in Vietnam, scheduled

QGEP to Acquire FPSO from Teekay

Teekay Offshore Partners L.P. has entered into an agreement with a consortium led by Queiroz Galvão Exploração e Produção SA (QGEP) to provide a floating production,

 
 
Maritime Contracts Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2073 sec (5 req/sec)