According to the head of Department Alexander Novak, without support measures the number of orders in the oilfield services in 2020 will be reduced by 30-40%, which may further impede the recovery of production in the process of passing the crisis on the market.
the peculiarity of the project is that it creates a mechanism that will allow you to save the work load and the ability to pay oil service companies, and avoid layoffs within their employees (in the segment employs about 300 thousand people). This, in turn, will allow Russian companies to continue development in the field of creation of high-tech equipment needed domestic oil and gas industry for further development.
In the competence of the oilfield service companies included: drilling and repair of wells, work on the intensification of production, geophysical exploration, geosteering, seismic exploration, and more. In their introduction is the whole technical process of preparing and production of oil or gas, as well as maintenance and monitoring of equipment in the fields.
in addition, the OFS is directly linked with engineering and industrial research, mechanical engineering, petrochemistry, and the preparation of IT solutions. Its development is one of the drivers of the development of domestic technology for the oil and gas industry after sanctions against Russia have blocked access to the newest foreign equipment. For example, for sea and shale extraction.
“the oilfield services is a critical infrastructure for the mining industry. Without it, the production is impossible,” – said the Director of consulting in the sphere of state regulation of FEC VYGON Consulting Darya Kozlova. The expert explained that the development of the domestic market and domestic production of equipment is a basic issue for maintaining the competitiveness of the Russian oil on the world market. Moreover, these two spheres of the oil industry have so-called “multiplier” effect from the development of reserves and resources. According to Daria Kozlova, the decline in oil prices, significant production cuts and cuts in investment programs of the mining companies, the oilfield services and its contractors, the equipment manufacturers will suffer the most.
to prevent this, the Ministry of energy offered to create a Fund for unfinished wells, the pattern of Fund uncompleted wells (DUC), existing in the United States. Russian oil companies will order services and equipment for the development and preparation of new oil wells at oil service companies in greater volume than necessary in 2020-2021 years. Wells were drilled without their commissioning to be implemented later on, as recovery in demand and increase oil production.
“This will keep the portfolio of orders forRadchikov and stabilize their financial situation,” said Daria Kozlova. The expert explained that the drilling is expected to be financed through borrowing banks. And in terms of a significant reduction in operating cash flow from oil companies, additional financial resources are extremely important. In addition, the formation of the Fund required for the rapid buildup of oil production from 2022. For example, the presence of the Fund DUC in the US allows you to quickly and flexibly respond to changing market conditions in the oil shale mining, – said Kozlov.
However, there is the initiative and the pitfalls that require solutions to old problems that have arisen before the fall of demand and a collapse of quotations of the barrel. So the oil companies could then “buy” the banks have unfinished well, as expected now, they should be cost effective. As shows the work on inventory of the deposits, 70% reserves in Western Siberia economically inefficient for new drilling when oil prices are below $ 40 per barrel. “Therefore, to increase the attractiveness of the Fund uncompleted wells is also necessary to reform the fiscal conditions for oil production,” said Daria Kozlova.