ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

Dear Readers,

Welcome to Issue 8 of ROGTEC Magazine, Russia and the Caspian’s pre-eminent technology focussed oil and gas publication.

The last few months have been an interesting time in the development of this exciting market. For many months, we have been kept hanging on the decision of Russia’s state owned gas monopoly, Gazprom, as to who they will choose as a partner to develop the huge Shtokman field.  Everyone had their personal opinion as to who would be the partner company, but no one expected the announcement that was eventually made. Having announced that they will develop the field by themselves, Gazprom did leave a glimmer of hope for bidding companies by saying they will still sub contract various works when developing the field.

As the market continues to evolve, ROGTEC continues to report on all the latest developments within the key areas of the market. This issue we would like to welcome on board the newest member of our editorial advisory board, Saeid Mokhatab, who has submitted to great pieces looking at the natural gas market. Please turn to page … to see his articles on LNG field bus automation, and gas interchangeability.

Continuing on with our series on Multiphase pumping technology, we have, in association with Dr. Stuart Scott from the MPUR,  put together a round table discussion forum, which includes the top manufacturers for the region. Discussing the latest developments, they look at how this technology is benefiting key areas of Russia and the Caspian. Please turn to page … for the article.

For the team at ROGTEC, the autumn has been a very busy period. One of our biggest shows was KIOGE in Almaty, where a team of ROGTEC representatives covered the show with magazines, ROGTEC emblazoned bags and other paraphernalia. At the same time, we had a stand at our namesake, the new Russian Oil and Gas TEChnology conference in Moscow. Both shows were a great success, showcasing the latest issue to all who attended. For the final major show of the year, we also attended the EAGE conference in St Petersburg where, as usual, ROGTEC was the only mainstream publication exhibiting. At all the shows we went to, it was good to meet old friends, and indeed make new ones. We look forward to seeing you all again in the near future.

You will find all the above, plus much more in this issue of ROGTEC, so please read on and enjoy our latest offering. As always, we welcome feedback from any of our readers.

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Firstly, we are all very pleased to be able to announce that ROGTEC Magazine has formed a unique partnership with ROSING, Russia´s pre-eminent oil and gas engineers association.

The partnership ensures that all the engineers at ROSING will receive a copy of ROGTEC Magazine, and indeed will use it as a medium to share technology know how across this exciting market. Its seems fitting that the industries leading paper resource and the markets largest, and most important industry association have joined forces for the benefit of the industry and we are very proud to be associated with them. For more information on the partnership, please visit www.rosing.ru/, or turn to page 42 for more information.

As always, we have seen a number of interesting developments in this exciting market. Exxon Neftegas Limited (ENL), a subsidiary of Exxon Mobil, has completed drilling of the Z-11 well, the longest measured depth extended-reach drilling (ERD) well in the world. Located on Sakhalin Island offshore Eastern Russia, the record-setting Z-11 achieved a total measured depth of 37,016 feet (11,282 meters) or over seven miles. Elsewhere on the Sakhalin Development, Shell have agreed to pay an annual dividend to the Russian government, which will be in line with the price of oil. Some insiders say the total could reach up to 1$ billion per year. Having conceded control of the project to Gazprom recently, it is clear that the state is flexing its muscles and stating its intent for the future.

In a move that looks to have secured Russia´s dominance in the race to secure the flow of central Asian gas, the leaders of Russia, Turkmenistan and Kazakhstan have agreed to build a new natural gas pipeline around the Caspian Sea. This is an interesting move, and indeed looks to have scuppered the rival US-backed trans-Caspian pipeline that was to bypass Russia. The deal also included assurances that the soviet era infrastructure system will be upgraded. Although the official line is that the US backed scheme is still “in the pipeline”, it seems that the Russians have won this particular race. With Nursultan Nazarbayev, Kazakhstan ´s president, also assuring his counterpart Vladimir Putin that he is keen on the majority of Kazakh oil flowing through Russia, it is sure to heighten tensions between the US and Russia. Indeed, at the time of going to press, US energy secretary Sam Bodman was quoted as saying that this deal is “not good for Europe” and that European leaders should “adjust their views accordingly”. The story continues.

One thing is for sure; the Russian and central Asian oil and gas market is continuing to boom and we are proud to be a part of it. We have a busy exhibition schedule ahead of us this summer, so please come and see us at the Caspian oil and gas exhibition, MIOGE, or offshore Europe over the next few months.

As always, I welcome your comments.

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Dear Readers,

Welcome to the issue 10 of ROGTEC Magazine, Russia and the Caspian’s leading upstream a technology focussed publication. I hope you have all had a great summer break; it was great for us to catch up with many familiar faces at all of the shows early in the summer. The Caspian oil and gas show, although small, is always worth the visit and the importance of MIOGE goes without saying.

The shall we shant we debate for Gazprom on Shtokman has come full circle since our last issue. In a recent announcement, Gazprom said that they have entered in to an agreement with Total which gives the French giant a 25% stake in phase one of the project, with the shares being transferred back to Gazprom on completion. This also raises the possibility of a further 24% stake being taken, or indeed shared, by other operators. We will keep you posted on any developments.

China also continues to invest heavily in Russia and central Asia, with both its setting up of the Sino-Turkmen cooperation project, and indeed the recent announcement that the CNPC will $1.2 billion on a pipeline to import Russian crude to China. With an initial capacity of 15 million tonnes per year, rising to 30 million, it seems that China are starting to become an increasingly important player in this exciting market. Watch this space for more news about the CNPC´s activities in the region.

Following events offshore Sakhalin, we have seen quite a few milestones being reached in this exciting project. Sakhalin Energy have recently announced both the arrival of the first cargo of liquefied natural gas (LNG) at Prigorodnoye in the south of Sakhalin Island, where they are currently building Russia’s first LNG plant. We have also seen the successful installation of the Piltun-Astokhskoye-B (PA-B) production platform topsides on the gravity base structure in the Piltun-Astokhskoye Field. For a more detailed look at the project, please see the article on page 33.

Moving on the Caspian, the feud between the ENI lead consortium and the Kazakh Government. Following an increase in total estimated cost projections of $57 billion to a staggering $136 billion, the Kazakhs are threatening a similar scenario as that of Sakhalin, when Shell were forced to cede control of the project to Russia’s state owned monopoly Gazprom. At the time of going to press, ENI released a statement saying they had 60 days in which top reach an agreement on the time and cost overruns. The government did not comment, fuelling the suspicion that all is not well at the site of the biggest oil find in decades.

I hope you all enjoy this issue, and we all look forward to catching up at the forthcoming exhibitions and conferences.

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Dear Readers,

Welcome to issue 11 of ROGTEC Magazine, and our last edition of a very eventful 2007.  This year has seen many developments in the global oil and gas sector, most notably the sharp increase in the price of crude oil. 20 years ago, 100 bucks a barrel was the doomsday scenario analysts thought would never happen. However, with new reserves increasingly hard to come by and an energy thirsty world that consumes over 80 million barrels per day of petroleum products, prices were always going to increase exponentially. Indeed, with an ever increasing price for a barrel of oil, more emphasis is being placed on new exploration, specifically in eastern Siberia and the Russian Arctic. With as yet untold reserves of hydrocarbons, and an ever growing domestic and national demand, companies are investing in new exploration technologies in order to exploit this.

Regionally, we have seen an end to the Shtokman partner issue with Total and Statoil Hydro being given 25% and 24% respectively. There is even talk of another partner joining the project which, given the costs and technical/logistical challenges faced, is not a bad move on Gazproms part. With any agreement however, much will depend on the recriprocal arrangement.

Earlier on in the year we saw the Russian Government take a hard line on the environmental issue, which ultimately cost Shell their majority on the Sakhalin 2. This not only came as surprise to many, but started a wave of oil company nationlisation by the Kremlin. Although not overtly obvious, the signs were there and they not only made the international operating companies stand up and take notice, but caused the resignation of some high profile executives from domestic operating companies.. Indeed, it served notice that the Russian bear was recovering its strength following the collapse of the Soviet Union and would not be pushed around, even by the multi billion dollar super majors. Whatever happens on the political level however, will have little or no effect on the multitude of companies servicing the oil patch across the region. Indeed, judging by the responses by some of the market leading service companies in our roundtable on page ??, the market could not be healthier.

So, with increasing oil prices, producing countries are experiencing a boom in oil revenues and Russia and the Caspian countries are no exception.  Discussions are on going with Russia´s near and far neighbours to achieve secure energy supplies, either concerning transit fees, the agreed price of gas or production, or supply and partnership rights. Whatever the problem, or indeed solution,  the issues and challenges will roll on much further than just next year.

As many people have witnessed this year there has been much speculation in the market place, with some comments being critical and some complimantary.  With the complex nature of the energy industry, those organisation who seek partnership in co-operation with the industry have gained the most.  Those who fear change and operate in a negative environment will suffer most in the long run.  Whilst Shell endured a lot of negative publicity over the Sakhalin project, I doubt that the true story will ever be truly known apart form those closest to the situation, their willingness to continue in a co-operative partnership framework will stand them in good stead for the long term.  I expect to see such partnerships solving the issues with the Kashagan project.

In any case, I hope you enjoy reading ROGTEC this quarter. I would also like to urge you all send back those subscription forms if you are not already a qualified subscriber. Remember, subscriptions are free on a regional basis and we will not be beaten on price for international circulation. On the note of circulation – ROGTEC has long boasted a very accurate and targeted circulation to the region, as well as cherry picked international readers.  Following 10 succesful issues, we have decided to cement our position as the markets leading and most read O&G publication by applying for an audit with one of the markets leading independent auditing organistaions. This is great news for ROGTEC, our readers and, most importantly, the advertisers who regularly support the publication.

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Dear Readers,

Welcome to another issue of ROGTEC Magazine; our first of 2008.

The beginning of this year has spelled turbulent times for the global economy; the knock on effects of the sub-prime mortgage crisis in the U.S has had a considerable effect on the world economy and every business sector has seemingly been affected. What is the one commodity the world cannot do without however? You guessed it. The hydrocarbon market in the FSU almost immune to global reseccion; the simple fact is that Russia has abundant reserves of a resource that every one wants. Companies in this market are continuing to increase there investments in the ongoing search for new deposits of oil and natural gas, the implementation of new technologies during production and transporation. As the exploration boundaries are pushed further in to remote areas, operating companies are having to dedicate more time planning and risk assessment. Lukoil´s new oil fields in the Timano-Pechora province are all connected by a private pipeline with a new onshore private oil terminal in Varandei, and a further by 22 km underwater pipeline with an off-shore ice-resistant export terminal in the Barents sea. The benefits of this set up are plain to see – high-quality crude from the regions deposits is transported by a private system and tankered directly to West European and US markets. It is great to see that the leading regional operators have all the bases covered when it comes to securing global energy security.

Indeed, Russian presidential hopefull Dmitry Medvedev has made some bold statements recently about his ideas for the countries energy strategy with promises of reduces tax on energy export if the sell in Roubles rather than dollars. The beginning of the PetroRouble? Unlikely one feels, but these murmurs will certainly not go unnoticed by the U.S.

On the home front, we have had a great response following our successful BPA Worldwide application announced in the last issue. It goes without saying that our clients are happy with this development, and indeed our competitors considerably less so!

We have a full calendar of events this year; EAGE St Petersburg OTC, NEFTEGAZ; Caspian O&G; KIOGE, the list goes on. We look forward to seeing you all there.

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Dear Readers,

Although I can hardly believe it, we are coming to the end of the year and the last issue of ROGTEC 08. It has been an interesting year in many respects; we have seen oil reach a peak of 147 dollars a barrel and swing back down to 85 at time of going to press. The facts are simple: global demand for oil, gas and petroleum products are increasing exponentially and commodity prices have always swayed primarily on the simple equation of supply and demand. The reduction in prices have come as welcome relief to struggling consumers and indeed economies, however the majority of consumables we use, from the computer on which I am writing this letter, to the car you drive and the petrol you fill it with are made from our beloved oil. It is true, and indeed obvious, that as the price of oil comes down, so do the profit margins of the operators. However, with demand continuing to stay strong for petroleum products globally, the smart money is on small drop followed steady increase in the price of a barrel. History shows that the oil industry tends to learn from its mistakes, and if operators stop investing in future production today due the low price of a barrel, there will be a lack of supply in the short to medium term. This will cause a serious spike in oil prices due demand outstripping supply. Leading the way in this respect are TNK-BP, who have recently announced that despite the current financial downturn, they intend to continue producing oil, increasing their reserves, building winter roads and oil-gathering centers, and constructing pipelines that will connect new fields with the trunk pipeline. Also let us not forget about natural gas, of which the Russian Federation holds the largest global reserves. A cheaper, greener and more abundant resource than its more illustrious brother oil, natural gas will, many say, become the hydrocarbon of choice in the not so distant future.

Back to ROGTEC Magazine, and we have had a great few months showcasing our latest issue. First up was our annual trip to Almaty for the Kazakhstan Oil and Gas Exhibition. We have seen this show grow and prosper over the last 4 years and this year was no exception. It was great to see all of our clients supporting the event, and we were again proud to be the only mainstream regional publication with a booth and personal presence at the exhibition. We followed this with a great booth and significant bonus distribution at the Russian Oil and Gas Technology Conference in Moscow. In fact, our presence was such that for the second year running, its seems we outgunned the official publication! On a serious note there were some great technologies under the spotlight, which we will look forward to reporting on later next year. From Russia to the Middle East, and ADIPEC, one of the largest energy exhibitions on the planet. It was great to be at this industry standard event and one we will look forward to attend again next year.

As I´m sure most of you new, ROGTECMAGAZINE.com has recently been relaunched and is receiving some serious attention from the industry. Since launching our newsletter at the beginning of November, we have received a fantastic response with direct replies a significant increase of traffic to ROGTECMAGAZINE.com. Our online issue is receiving some serious viewing and we are very proud to have received some great feedback.

Let me take this opportunity to wish you all a very happy holiday season, and remember, if you´re thinking Russia, think ROGTEC!

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Dear Readers,

Although I can hardly believe it, we are coming to the end of the year and the last issue of ROGTEC 08. It has been an interesting year in many respects; we have seen oil reach a peak of 147 dollars a barrel and swing back down to ?? at time of going to press. The facts are simple: global demand for oil, gas and petroleum products are increasing exponentially and commodity prices have always swayed primarily on the simple equation of supply and demand. The reduction in prices have come as welcome relief to struggling consumers and indeed economies, however the majority of consumables we use, from the computer on which I am writing this letter, to the car you drive and the petrol you fill it with are made from our beloved oil. It is true, and indeed obvious, that as the price of oil comes down, so do the profit margins of the operators. However, with demand continuing to stay strong for petroleum products globally, the smart money is on small drop followed steady increase in the price of a barrel. History shows that the oil industry tends to learn from its mistakes, and if operators stop investing in future production today due the low price of a barrel, there will be a lack of supply in the short to medium term. This will cause a serious spike in oil prices due demand outstripping supply. Leading the way in this respect are TNK-BP, who have recently announced that despite the current financial downturn, they intend to continue producing oil, increasing their reserves, building winter roads and oil-gathering centers, and constructing pipelines that will connect new fields with the trunk pipeline. Also let us not forget about natural gas, of which the Russian Federation holds the largest global reserves. A cheaper, greener and more abundant resource than its more illustrious brother oil, natural gas will, many say, become the hydrocarbon of choice in the not so distant future.

Back to ROGTEC Magazine, and we have had a great few months showcasing our latest issue. First up was our annual trip to Almaty for the Kazakhstan Oil and Gas Exhibition. We have seen this show grow and prosper over the last 4 years and this year was no exception. It was great to see all of our clients supporting the event, and we were again proud to be the only mainstream regional publication with a booth and personal presence at the exhibition. We followed this with a great booth and significant bonus distribution at the Russian Oil and Gas Technology Conference in Moscow. In fact, our presence was such that for the second year running, its seems we outgunned the official publication! On a serious note there were some great technologies under the spotlight, which we will look forward to reporting on later next year. From Russia to the Middle East, and ADIPEC, one of the largest energy exhibitions on the planet. It was great to be at this industry standard event and one we will look forward to attend again next year.

As I´m sure most of you new, ROGTECMAGAZINE.com has recently been relaunched and is receiving some serious attention from the industry. Since launching our newsletter at the beginning of November, we have received a fantastic response with direct replies a significant increase of traffic to ROGTECMAGAZINE.com. Our online issue is receiving some serious viewing and we are very proud to have received some great feedback.

Let me take this opportunity to wish you all a very happy holiday season, and remember, if you´re thinking Russia, think ROGTEC!

No related posts.

Dear Readers,

Although I can hardly believe it, we are coming to the end of the year and the last issue of ROGTEC 08. It has been an interesting year in many respects; we have seen oil reach a peak of 147 dollars a barrel and swing back down to ?? at time of going to press. The facts are simple: global demand for oil, gas and petroleum products are increasing exponentially and commodity prices have always swayed primarily on the simple equation of supply and demand. The reduction in prices have come as welcome relief to struggling consumers and indeed economies, however the majority of consumables we use, from the computer on which I am writing this letter, to the car you drive and the petrol you fill it with are made from our beloved oil. It is true, and indeed obvious, that as the price of oil comes down, so do the profit margins of the operators. However, with demand continuing to stay strong for petroleum products globally, the smart money is on small drop followed steady increase in the price of a barrel. History shows that the oil industry tends to learn from its mistakes, and if operators stop investing in future production today due the low price of a barrel, there will be a lack of supply in the short to medium term. This will cause a serious spike in oil prices due demand outstripping supply. Leading the way in this respect are TNK-BP, who have recently announced that despite the current financial downturn, they intend to continue producing oil, increasing their reserves, building winter roads and oil-gathering centers, and constructing pipelines that will connect new fields with the trunk pipeline. Also let us not forget about natural gas, of which the Russian Federation holds the largest global reserves. A cheaper, greener and more abundant resource than its more illustrious brother oil, natural gas will, many say, become the hydrocarbon of choice in the not so distant future.

Back to ROGTEC Magazine, and we have had a great few months showcasing our latest issue. First up was our annual trip to Almaty for the Kazakhstan Oil and Gas Exhibition. We have seen this show grow and prosper over the last 4 years and this year was no exception. It was great to see all of our clients supporting the event, and we were again proud to be the only mainstream regional publication with a booth and personal presence at the exhibition. We followed this with a great booth and significant bonus distribution at the Russian Oil and Gas Technology Conference in Moscow. In fact, our presence was such that for the second year running, its seems we outgunned the official publication! On a serious note there were some great technologies under the spotlight, which we will look forward to reporting on later next year. From Russia to the Middle East, and ADIPEC, one of the largest energy exhibitions on the planet. It was great to be at this industry standard event and one we will look forward to attend again next year.

As I´m sure most of you new, ROGTECMAGAZINE.com has recently been relaunched and is receiving some serious attention from the industry. Since launching our newsletter at the beginning of November, we have received a fantastic response with direct replies a significant increase of traffic to ROGTECMAGAZINE.com. Our online issue is receiving some serious viewing and we are very proud to have received some great feedback.

Let me take this opportunity to wish you all a very happy holiday season, and remember, if you´re thinking Russia, think ROGTEC!

No related posts.

Dear Readers,

Welcome to the first issue of ROGTEC in 2009; I hope all of our readers have had a good start to this challenging year, and are looking forward to the calmer waters that lie ahead.

I spoke a little while ago with an operations manager in Western Siberia, and on the subject of the current economic climate he said “Nick, don’t worry my friend, 2 things you have to consider; one we are in Russia, and two we are in a credit crunch proof industry!” I do sometimes wonder if he regrets these words. In reality, the industry has been suffering, indeed budgets and projects have been cut in some areas. It is also true that with the uncertainty surrounding the price of the barrel no one can actually predict, at least with any confidence, what will happen next.  But what most people do agree on is that without continued and further investment in the oil field today we will suffer the consequences of supply shortages in the years to come. This will result in a spike in price and more uncertainty: let us hope investment increases during the coming quarters and we get back to some semblance of normality.

Back to this issue ROGTEC Magazine, we kick off the first issue of the year with an exclusive interview with Harry Brekelmans, CEO of Salym Petroleum Development; along with giving a great insight into their bright outlook for the future, he discusses technology implementation for their drilling activity and how western technology and Russian know how is working in perfect harmony.

We are also pleased to announce a new relationship with Rosneft which this will see quality technology articles being published in our magazine. In this issue they look at their innovative geophysical technology. TNK-BP are looking at the development of the Uvat fields, using the latest technologies to succeed where others have previous failed. With Stroytransgaz focusing on their pipeline welding technology, we have another great issue of the regions leading oil and gas technology publication.

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Dear Readers,

A year since MIOGE, a year since the start of the global crisis proper and 11 months since we saw the giddy heights of 147 dollar oil. With Trillions having been spent to steady the collective ship, we have not so much seen the green shoots of recovery, but a bottoming out of the lack of confidence that has plagued the markets in recent months. At the time of going to press, oil had hit 60 bucks, the magical number according to some unofficial sources at the large NOC´s in Russia. As I mentioned back in November in my note for ROGTEC issue 15, the oil price was always going to drop in a global recession, but the smart money was on a slow but steady increase to a sensible barrel price.

Indeed, despite the current climate Russian operators have been keenly investing outside of the federation. Surgutneftegaz recently acquired a 21 percent stake in Hungary’s MOL from Austria’s OMV for 1.4 billion euros, TNK-BP is reported to be considering the acquisition of Zhaikmunai, a London listed producer based in Kazakhstan. Zhaikmunai produces 8,500 barrels of oil per day at the Chinarevskoye field in western Kazakhstan. Presently TNK-BP does not have upstream assets in Kazakhstan and with LUKOIL and Rosneft two Russian majors heavily involved in the region, watch this space for more TNK-BP M&A activity in former soviet republic.

Outside of Europe, in mid-April an agreement was reached between the governments of Russia and Iraq that would allow Russian oil companies to revive pre-war contracts in the Gulf state. This could give a chance to Tatneft to resume negotiations on developing two blocks in Iraq ’s western desert and to LUKOIL to reinstate its 1997 contract to develop the West Qurna-2 field under PSA terms.

Back to this issue, we have our usual blend of operator led editorial; TNK-BP look at how exponential data growth is becoming a serious issue in the oil and gas sector as a whole, and with up to 75% of their company data being stored on single copy magnetic tape, new data storage and management solutions are needed to ensure there is no future data loss. On the drilling front, we have gathered the industry’s leading service companies to discuss their opinions and technology on extended reach drilling. ERD is now being used to great effect on various fields in the region and with the price of oil climbing to a reasonable level, expect to see more on this technology adaptation. We have Rosneft looking at risk assessment during exploratory drilling at the Vankor field, SPD looking at Well Reservoir Management and Stroytransgaz looking at what technology they are using for their pipeline welding activities. With some experts predicting an impending shortage of easy oil, our special feature is heavy oil recovery, so turn to pages 80 to see the latest technologies being developed in Canada and Russia to tackle this industry challenge.

So I hope you all enjoy this issue and as always, we have a busy show schedule coming up and look forward to seeing you all at the upcoming Caspian Oil and Gas and MIOGE!

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