UK's Subsea Cos Could Unlock Russian Arctic Shelf's Potential
The Northern waters of Russia promise to be the next global energy frontier and Subsea UK is making sure that British subsea oil and gas companies can capitalize on the opportunities.
The industry body has joined forces with Scottish Development International, UKT&I and Gazprom Vniigaz to hold an exhibition and workshop in Moscow and Murmansk from October 13-17 to ensure that UK subsea expertise is in prime position for securing lucrative collaborative projects.
"The unrivalled experience and expertise of the UK's subsea supply chain could hold the key to unlocking the potential in the Russian Arctic shelf," said Subsea UK chief executive, Alistair Birnie. "The technical challenges, lack of infrastructure and labour shortages in the region provide major opportunities for UK companies to work alongside Russian partners."
The trade mission will see half a dozen subsea companies showcase their skills and technologies with an exhibition, meetings and presentations over two days followed by a visit to SevTEK in Murmansk.
During Northern Russia's major oil and gas exhibition, Mr Birnie will present on why the UK subsea sector is ideally placed to assist Russian organisations overcome the challenges of producing oil and gas from the waters of Northern Russia.
"Through collaboration with the Russian government and industry, we can help build the necessary capability and capacity to deliver projects that are at the frontier of subsea field development," added Mr Birnie. "Our success of collaboration within the UK and other oil and gas provinces around the world is demonstrated by our instrumental involvement in so many major global developments and this proven track-record stands us in good stead for capitalizing on the multi-billion market in the Russian Arctic shelf."
At the heart of the opportunities in this area is the giant Shtokman gas field. Located at a depth of over 300 meters and nearly 600 kilometers from the mainland, this field is estimated to hold about 1% of total global gas reserves. Investment in Shtokman alone is estimated at $50 billion with investment decisions scheduled for 2010.
"The timing is absolutely right for making in-roads into Russia and Subsea UK will be promoting the UK's ground-breaking capability throughout the supply chain including field development engineering, pre-construction survey, fabrication, instrumentation, subsea electro-hydraulic controls, pipelines and umbilicals, mooring and connection systems, ROV technologies and subsea well intervention.
"Murmansk will play a critical role in the development of this field and become the centre of onshore production. The region has infrastructure developments totalling $8 billion planned which will transform this region of Russia, making it a hotspot for our member companies."
Phil Stirling, international business executive with SDI, commented, "This event represents a prime opportunity to showcase their capabilities and experience to the Russian market. It is one of the most promising oil and gas markets for Scottish companies and presents an enormous opportunity as the harsh conditions of the Barents Sea suit the companies' capabilities. We feel this level of mutually beneficial co-operation between Scottish and Russian companies is the key to the success."
Subsea UK is a self-sustaining industry body that champions the UK subsea industry at home and abroad. With over 200 members, it represents the entire subsea supply chain in the country which employs 40,000 people and generates sales of £5 billion.
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