A new branch of industry is needed

In an article in the magazine “Oil in Russia” («Нефть России»), Kirillov explains how he believes the Russian shipbuilding industry can be made more competitive.

In 2005 Gazprom adopted the Program of Russian offshore hydrocarbon resource production within the period till 2030. Main regions for the production are the Pechora Sea, north-eastern part of the Barents Sea, Obsko-Tazovskaya bay, the Kara Sea and the Sea of Okhotsk. From the point of view of Gazprom’s needs in technologies, equipment and materials, the most significant is the Shtokman project. The program of offshore projects development presupposes around 80 specialized self-floating technical structures including 11 marine platforms and 23 oil-ships. For their maintenance on-shore port construction will be needed.

One should take into consideration that other Russian companies such as Rosneft and Lukoil, as well as foreign companies in cooperation with Russian ones will participate in offshore projects. As a result, the number of marine projects can seriously increase in the near future. Oil and gas production in the Eastern Siberia and in the Far East will increase the demand on scientific support and Russian factories production.

The experts are unanimous that today the Russian technologies, equipment and materials producers can not completely answer the offshore area needs not only of Russia but even of Gazprom. Russian industry has a wide experience in large-scale deposits development within difficult geological and climatic conditions but only on-shore.

Shtokman project’s background and realization experience shows that on the first stage of a new industrial branch introduction, Russian enterprises will face difficulties in competing with foreign leading companies in standard branch production for marine resource development. Russian producers of pipes, metal constructions, fittings, electrical equipment and compressors have comparatively good opportunities for competing. Russian shipbuilding industry, able to produce large-capacity vessels and large-size platforms, has a potential serious enough. Though, Russian shipbuilding companies are not yet able to carry out projects on turn-key conditions, which are presupposed by the conditions of the turn-key contract.

The imported part in the Russian enterprises’ production is extremely large. As a result Russian industry including military-industrial complex highly depends on the details and hardware abroad purchase. For their substitution on the basis of shipbuilding, machine building, metallurgical and other industries a new industrial branch formation is needed, which will be directed towards offshore area development. It goes without saying, that the process will take several years and will include tight cooperation with leading foreign companies. First of all it comes to transferring to Russia of turn-key production technologies of underwater mining complexes, marine technological platforms, specialized floating supply vessels and others. Introduction of such capacities in Russia can take 3-4 years, but some technologies transferring can take up to 10 years. According to Kirillov, shipbuilding adaptation to offshore projects can take from three to seven years, although, some enterprises such as Sevmash are able to carry out the reconstruction much faster. By the third stage of Shtokman deposit development Russian companies will be ready to function as a general contractor.

Unique technologies transfer to Russia is an extremely complicated question. It is essential to find partners, possessing new technologies, to form an alliance, to be winning on the biddings for large-scale marine projects realization. All these stages can make the process quiet continuous.

The work stirring up on the offshore direction can be conductive to complete normative basis introduction, standards and clear technical conditions formation as well as connection network, navigation and transport infrastructure development on the state level.

The most essential is the lack of spur system for the maximum number of potential Russian companies and organizations attraction to the projects of marine resource development. Also a coordination of general efforts and systematic control is needed. All these problems cannot be solved without the state participation.

If the state will give firm directions and will carry out the control of the process, there will appear more favorable conditions for the investments. In this case in a decade a completely new industrial branch, directed to offshore areas development will be formed.

This material is prepared by Ksenia Kipurova, trainee at the Norwegian Barents Secretariat’s office in Arkhangelsk.