Russia to make subsea oil production equipment in 2019-20

MOSCOW, Mar 23 (PRIME) -- Russia will start manufacturing its own subsea equipment used to produce hydrocarbons in shallow areas in 2019-2020, Deputy Industry and Trade Minister Vasily Osmakov said in an interview with PRIME on Thursday.

“Currently we are working to create a Russia-made subsea production complex, we discussed the topic several days ago at a ministry meeting. It is expected to enter the market in 2019-2010,” he said, adding that gas giant Gazprom is among the anchor customers.

The official said 1.3 billion rubles were invested in projects to develop geological exploration equipment for shallow operations in 2016, and 2.5 billion rubles will be invested in eight projects in 2017.

The share of imported subsea production equipment will be reduced from the present 85% to 65% by 2020 and to 50% by 2025, Osmakov said.

The U.S. sanctions against Russia prohibit Western companies from participating in shallow oil production, including equipment and technologies supplies, as well as development of shale fields. Besides, they restrict access to foreign credit to Russian companies.

Osmakov also said that it is important to use special investment contracts to develop projects in the Arctic region and a b2b marketplace for industrial goods.

(57.6360 rubles – U.S. $1)

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