Chinese Suppliers Can Rescue Russian Oil Industry
Posted: 10/20/2014 03:10:16 Edited: 10/20/2014 03:10:16 Clicks: 1323
Russian Ministry of Industry & Trade admits that sanctions of the Western not only threaten oil and gas exploitation on continental shelf, but also affects conventional oil fields. In term of mid-term, oil production has risks for decline. Dependence degree of Russian oil companies on equipments from the Western is higher than 80%. Russian Ministry of Industry & Trade considers that Chinese suppliers can rescue Russian oil industry at present.
Russian Ministry of Industry & Trade drew up a document that replaced import oil equipments in Russian oil industry and submitted to government on October 14. Ostensibly, equipments which are prohibited by the Western exporting to China are only used for exploiting oil fields or shale oil in the Arctic Pole and deepwater. In fact, sanctions also threaten conventional oil fields.
In short term, sanctions have less influence. However, for necessary updating or repairing equipments and drilling new oil fields, the risks that oil production falls in some oil fields are growing constantly.
It is reported that although more than 200 enterprises in Russia are manufacturing oil and gas exploiting equipments, using Russian products to substitute completely for import equipments cannot be realized before 2018-2020. Nowadays, Russian can only seek for new suppliers in those countries who do not join in sanctions on Russia. The document of Russian Ministry of Industry & Trade mentioned China, South Korea, Singapore, India and Latin American countries.
Russian oil companies had already begun to negotiate with new suppliers. On October 13, Rosneft discussed with CNPC for the possibility to cooperate in oil extraction service, providing equipments and other sectors.
Russian manufacturers fear that Russian oil companies turning to the Eastern. They consider that for oil companies, cooperating with Chinese companies is the easiest. But for mid-term and long-term, that may result in new risks of import dependence.
Russian Ministry of Industry & Trade drew up a document that replaced import oil equipments in Russian oil industry and submitted to government on October 14. Ostensibly, equipments which are prohibited by the Western exporting to China are only used for exploiting oil fields or shale oil in the Arctic Pole and deepwater. In fact, sanctions also threaten conventional oil fields.
In short term, sanctions have less influence. However, for necessary updating or repairing equipments and drilling new oil fields, the risks that oil production falls in some oil fields are growing constantly.
It is reported that although more than 200 enterprises in Russia are manufacturing oil and gas exploiting equipments, using Russian products to substitute completely for import equipments cannot be realized before 2018-2020. Nowadays, Russian can only seek for new suppliers in those countries who do not join in sanctions on Russia. The document of Russian Ministry of Industry & Trade mentioned China, South Korea, Singapore, India and Latin American countries.
Russian oil companies had already begun to negotiate with new suppliers. On October 13, Rosneft discussed with CNPC for the possibility to cooperate in oil extraction service, providing equipments and other sectors.
Russian manufacturers fear that Russian oil companies turning to the Eastern. They consider that for oil companies, cooperating with Chinese companies is the easiest. But for mid-term and long-term, that may result in new risks of import dependence.
