High gas and oil prices let companies invest in advanced oil production technologies - Yury Trutnev
To develop the shelf Russia has to catch up in equipment development
Russia should recover its position as a country applying advanced technologies in production of hydrocarbons, Yury Trutnev, Deputy Prime Minister of Russia, Presidential Plenipotentiary Envoy to the Far Eastern Federal District (FEFD), is cited by his press office as saying after the meeting on implementation of oil and gas projects in the Sakhalin Region.
"We should develop the shelf, invite friendly countries to cooperation, revive technologies. Besides, there is a whole range of technologies making us partially fall behind the global pace. The companies engaged in production of hydrocarbons have enough financial resources today with gas and oil prices at a very high level. We need to find the money for development and for introduction, for production of equipment required for the field development. That was discussed at today’s meeting. The instructions have been given. I hope we will proceed in these directions," Yury Trutnev said.
Earlier this month, the Russian government announced that it would create a new company that would take over all the rights and obligations of Sakhalin Energy Investment. The decree was signed by President Vladimir Putin. According to the decree, the property of Sakhalin Energy Investment is subject to immediate transfer to the ownership of the Russian Federation with its simultaneous transfer to the LLC.
Shares in the authorized capital of the company will belong to OOO Gazprom Sakhalin Holding and the company itself. The document states that such a decision was made in connection with the unfriendly and contrary to international law actions of the United States and the countries and organizations that joined them.
Sakhalin Energy Investment Company (Sakhalin Energy) is the operator of the Sakhalin LNG project, one of the world's largest integrated oil and gas projects, within which a large-scale oil and gas infrastructure for the production, transportation and processing of hydrocarbons has been built. The company markets oil produced in the Sea of Okhotsk and liquefied natural gas produced at Russia's first LNG plant built by Sakhalin Energy in the south of the island. Mitsui and Mitsubishi control 12.5% and 10% of the shares in the Sakhalin project, respectively. Back on February 28, Shell (27.5% of the project's shares) announced that it was withdrawing from the Sakhalin joint venture with Gazprom. Gazprom owns 50% in the project.
Following the beginning of Russia’s “special military operation” in Ukraine in February 2022, foreign oilfield service companies announced partial or complete withdrawal from the country. Sulzer, Swiss industrial engineering and manufacturing firm specializing in pumping and purification technologies for fluids, decided to exit the Russian market in May 2022. Baker Hughes cancelled all the contracts with the sanctioned companies. Halliburton handed over the assets of its Russian branch to a new legal entity which is going to sell them to the local management. Schlumberger was planning similar actions.
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RF Government to establish new operator of Sakhalin Energy >>>>
