Future of Russian O&G Engineering Services Market: Outlook to 2025

A decline in hydrocarbon production in Russia’s conventional oil and gas regions causes the need to rapidly develop new fields and deploy production, transportation and feedstock processing infrastructure. This, in turn, gives rise to extensive demand for design and construction services in the oil and gas industry, trends which cannot fail to attract the attention of potential contractors, both in Russia and abroad. Rising interest in the engineering services market in the O&G industry prompted RPI to carry out a research study devoted to the mid-term expansion of this segment. 

This study provides a detailed overview of completed, current and planned projects in the Russian O&G industry and an assessment of the development of the design and construction services segment until 2020. Detailed profiles are given for the largest O&G and petrochemical companies, their construction needs for industrial facilities are analyzed for the coming years, as well as specific contracting features and options for project implementation (EPC, EPCM, etc). Special attention is devoted to the profiles of leading players on the Russian engineering services market as well as potential entrants. 

The analysis makes it possible to gain a clear picture of the current status of the design and construction services market in the oil and gas industry by evaluating the market scope, providing overviews of the key players and customers, and making mid-term projections on the expansion of this segment, while taking into account taxation, macroeconomic, geopolitical and other relevant risks. 

The target audience of the study is, first and foremost, engineering companies that are interested in expanding their business in the Russian oil and gas industry. The study not only offers a clear depiction of key projects in such areas as the upstream, downstream and midstream, but also suggests ways to enter the Russian market and select the best possible format for dealing with construction contractors (EPC, EPCM, Cost Plus, etc). 

The current industry players will also gain an additional opportunity to objectively evaluate their performance and adjust their business development model in order to solidify their market positions. 

The study could be a valuable tool for manufacturers of materials and equipment when making strategic decisions. Thanks to the thorough analysis provided in the report, companies will be able to assess in advance the need for one or another type of equipment, form an optimal product range and work out targets for boosting their operating indices. 

In addition, financial and investment companies will have the chance to perform a more accurate assessment of the risks in funding Russian oil and gas projects and make the correct decision about their potential involvement in these projects. 

1. Methodology and Scope
2. Conclusions and Approaches to Analysis
3. The Russian Engineering Service Market: Current Status and Forecast to 2025
3.1 Major customers for design services
3.1.1 Gazprom
3.1.2 Gazprom Neft
3.1.3 LUKOIL
3.1.4 NOVATEK
3.1.5 Rosneft
3.1.6 SIBUR
3.1.7 Surgutneftegaz
3.1.8 Transneft
3.2 Key design service market subsegments
3.2.1 Oilfield surface facility design
3.2.2 Oil and gas trunk pipeline design
3.2.3 Refinery, GPP and petrochemical facility construction and refurbishment design
3.3 Major contractors on the design service market
3.4 Review of key customer approaches to contractor selection
3.4.1 Rosneft
3.4.2 Gazprom
3.4.3 Gazprom Neft
3.4.4 LUKOIL
3.4.5 Surgutneftegaz
3.4.6 NOVATEK
3.4.7 Tatneft
3.4.8 Bashneft
3.4.9 Slavneft
3.4.10 RussNeft
3.4.11 Small independent producers
3.5 Basic Russian project stakeholder role distribution and project implementation flow chart
3.5.1 Application of EPC in Russia
3.5.2 Review of foreign engineering company operations in the Russian petroleum industry
4. Major Design Company Profiles
4.1 VNIIST
4.1.1 ZAO VNIIST-Neftegazproyekt
4.2 Gazprom
4.2.1 ОАО VNIPIgazdobycha
4.2.2 ООО Gazprom VNIIgaz
4.2.3 ОАО Giprogaztsentr
4.2.4 ОАО Giprospetsgaz
4.2.5 North Caucasus Research and Development and Design Institute of Natural Gas (ОАО SevkavNIPIgaz)
4.2.6 DOAO TsKBN ОАО Gazprom (Central Oilfield Equipment Design Bureau)
4.2.7 ООО TyumenNIIgiprogaz
4.2.8 ООО VolgoUralNIPIgaz
4.2.9 ОАО YuzhNIIgiprogaz
4.2.10 ООО Piter Gas
4.3 Gazprom Neft
4.3.1 ООО Gazprom Neft NTTs
4.4 HMS Group
4.4.1 ОАО Giprotyumenneftegaz
4.5 LUKOIL
4.5.1 ООО LUKOIL-Engineering
4.5.2 ОАО Giprokauchuk
4.6 NOVATEK
4.7 RMNTK Nefteotdacha
4.7.1 ОАО Giprovostokneft
4.8 Rosneft
4.8.1 ООО OC Rosneft - NTTs
4.8.2 ООО RN-SakhalinNIPImorneft
4.8.3 ООО RN-UfaNIPIneft
4.8.4 ООО SamaraNIPIneft
4.8.5 ОАО TomskNIPIneft
4.8.6 ООО RN-KrasnoyarskNIPIneft
4.8.7 ZAO INNTs (Izhevsk Petroleum R&D Center)
4.8.8 ОАО Samaraneftekhimproyekt
4.9 GK RusGazEngineering
4.9.1 ZAO NIPINGKh (NIPINefteGazoKhimii)
4.10 SIBUR
4.10.1 ОАО NIPIgazpererabotka
4.11 Stroitransgaz
4.11.1 ООО STGEngineering
4.12 Surgutneftegaz
4.12.1 NIPI SurgutNIPIneft (ОАО Surgutneftegaz)
4.12.2 ООО Lengiproneftekhim
4.13 Tatneft
4.13.1 ОАО Tatneft V.D. Shashin TatNIPIneft Institute
4.14 Transneft
4.14.1 ОАО Giprotruboprovod
5. Independent Market Player Profiles
5.1 ОАО VNIPIneft
5.2 ZAO NIPI InzhGeo
5.3 ZAO Tyumenneftegazproyekt
5.4 ОАО Institut Neftegazproyekt
5.5 ZAO Giprong-Ekom
5.6 ООО LenNIIkhimmash
5.7 ОАО VNIIneftekhim
5.8 ООО Proyektny Institut Rossneftegazroyekt
5.9 ОАО Omsky Institut Omskneftekhimproyekt
5.10 ООО Premium Engineering
5.11 ООО Gaz-Proyekt Engineering
5.12 ZAO Proyektny Institut Nefteproyekt
5.13 ОАО Giprogazoochistka
5.14 ООО NPO Engineering Systems
5.15 ОАО Nizhnevartovsk NIPIneft
5.16 ZAO Firma Frikon
5.16.1 ОАО Globalstroi Engineering
5.16.2 ОАО HMS Group
5.16.3 ZAO Madeliks
5.16.4 ОАО OZNA
5.16.5 GK PSM
5.16.6 Promstroi Group
5.16.7 RusGazEngineering Group
5.16.8 StroigazConsulting
5.16.9 ОАО Stroitransgaz
6. Profiles of Major Foreign Engineering Companies Present on the Russian Market
6.1 ALTA (Czech Republic)
6.2 Fluor (Unites States)
6.3 JGC Corporation (Japan)
6.4 Mitsubishi Heavy Industries (Japan)
6.5 Technip (France)
6.6 Técnicas Reunidas (Spain)
6.7 СB&I
6.8 Foster Wheeler
6.9 KBR
6.10 Shell Global Solutions International
7. Attachments
7.1 Major upcoming projects in Russia by 2020 (upstream, midstream, downstream)

Chart 1. Forecast of oil production in Russia in 2014-2020, millions of tons 

Chart 2. Forecast of gas production in Russia in 2014-2020, billions of cubic meters 

Chart 3. Engineering service market players 

Chart 4. Russian design service market size in 2008-2025, billions of rubles 

Chart 5. Changes and forecast of design work scopes in Russia by individual segment in 2008-2025, billions of rubles 

Chart 6. Major customer shares of Russia’s total design market in 2013, % of the total market size 

Chart 7. Design work scopes by major customer in 2008-2025, billions of rubles 

Chart 8. Changes and forecast of design expenditures by Gazprom, 2008-2025, billions of rubles 

Chart 9. Changes and forecast of design expenditures by Gazprom Neft, 2008-2025, billions of rubles 

Chart 10. Changes and forecast of design expenditures by LUKOIL, 2008-2025, billions of rubles 

Chart 11. Changes and forecast of design expenditures by NOVATEK, 2008-2025, billions of rubles

Chart 12. Changes and forecast of design expenditures by Rosneft, 2008-2025, billions of rubles 

Chart 14. Changes and forecast of design expenditures by SIBUR, 2010-2025, billions of rubles 

Chart 15. Changes and forecast of design expenditures by Surgutneftegaz, 2008-2025, billions of rubles 

Chart 16. Changes and forecast of design expenditures by Transneft, 2008-2025, billions of rubles 

Chart 17. Changes and forecast of expenditures for oilfield facility design by region, 2008-2025, billions of rubles 

Chart 18. Changes and forecast of expenditures for oilfield facility design by Russian companies, 2008-2025, billions of rubles 

Chart 19. Changes and forecast of expenditures for pipeline design by Russian companies, 2008-2025, billions of rubles 

Chart 20. Changes and forecast of expenditures for downstream facility design by Russian companies, 2008-2025, billions of rubles 

Chart 21. Major customer shares of the petroleum infrastructure facility design market, %, 2013 

Block Diagram 1. EPC contract in the petroleum downstream segment (both turnkey and major individual components) 

Block Diagram 2. ОАО Gazprom oilfield surface facility design contractor interfaces 

Block Diagram 3. ОАО Gazprom Neft third-party oilfield surface facility design contractor interfaces 

Block Diagram 4. ОАО LUKOIL oilfield surface facility design contractor interfaces 

Block Diagram 5. OC Rosneft oilfield surface facility design contractor interfaces 

Block Diagram 6. ОАО Surgutneftegaz oilfield surface facility design contractor interfaces 

Table 1. Russian design service market size in 2008-2025, billions of rubles

Table 2. Design work scopes by key customer in 2008-2025, billions of rubles

Table 3. Changes and forecast of design expenditures by Gazprom, 2008-2025, billions of rubles 

Table 4. Changes and forecast of design expenditures by Gazprom Neft, 2008-2025, billions of rubles 

Table 5. Changes and forecast of design expenditures by LUKOIL, 2008-2025, billions of rubles 

Table6. Changes and forecast of design expenditures by NOVATEK, 2008-2025, billions of rubles 

Table 7. Changes and forecast of design expenditures by Rosneft, 2008-2025, billions of rubles 

Table 8. Changes and forecast of design expenditures by SIBUR, 2018-2025, billions of rubles 

Table 9. Changes and forecast of design expenditures by Surgutneftegaz, 2008-2025, billions of rubles 

Table 11. Changes and forecast of design expenditures by Transneft, 2008-2025, billions of rubles 

Table 12. Changes and forecast of expenditures for oilfield facility design by region, 2008-2025, billions of rubles 

Table 13. Changes and forecast of expenditures for oilfield facility design by Russian companies, 2008-2025, billions of rubles 

Table 14. Changes and forecast of expenditures for pipeline design by Russian companies, 2008-2025, billions of rubles 

Table 15. Changes and forecast of expenditures for downstream facility design by Russian companies, 2008-2025, billions of rubles 

Table 16. Revenues of Russian engineering companies in 2013, thousands of rubles. 

Table 17. Profiles of current EPC contractors in Russia 

Table 18. Financial performance of ОАО VNIIST, 2008-2013 

Table 19. Financial performance of ZAO VNIIST-NefteGazProyekt, 2011-2012 

Table 20. Financial performance of ОАО VNIPIgazdobycha, 2009-2013 

Table 21. Financial performance of ООО Gazprom VNIIgaz, 2008-2013 

Table 22. Financial performance of ОАО Giprogaztsentr, 2009-2013 

Table 23. Financial performance of ОАО Giprospetsgaz, 2009-2013 

Table 24. Financial performance of ОАО SevkavNIPIgaz, 2009-2013 

Table 25. Financial performance of DOAO TsKBN (ОАО Gazprom), 2009-2013 

Table 26. Financial performance of ООО TyumenNIIgiprogaz, 2009-2013 

Table 27. Financial performance of ООО VolgoUralNIPIgaz, 2009-2013 

Table 28. Financial performance of ООО GAZPROM ENGINEERING, 2008-2013 

Table 29. Financial performance of ООО Gazprom Neft NTTs, 2009-2013 

Table 30. Financial performance of ОАО Giprotyumenneftegaz, 2009-2013 

Table 31. Financial performance of ООО LUKOIL-Engineering, 2011-2013 

Table 32. Financial performance of ОАО Giprokauchuk, 2009-2013 

Table 33. Financial performance of ОАО Giprovostokneft, 2009-2013 

Table 34. Financial performance of ООО OC Rosneft - NTTs, 2008-2013 

Table 35. Financial performance of ООО RN - SakhalinNIPImorneft, 2008-2013 

Table 36. Financial performance of ООО RN - UfaNIPIneft, 2008-2013 

Table 37. Financial performance of ООО SamaraNIPIneft, 2008-2013 

Table 38. Financial performance of ОАО TomskNIPIneft, 2009-2013 

Table 39. Financial performance of ООО RN - KrasnoyarskNIPIneft, 2010-2013 

Table 40. Financial performance of ZAO INNTs, 2009-2013 

Table 41. Financial performance of ОАО Samaraneftekhimproyekt, 2009-2013 

Table 42. Financial performance of ZAO GK RusGazEngineering, 2010-2013 

Table 43. Financial performance of ZAO NIPI NGKh, 2009-2013 

Table 44. Financial performance of ОАО NIPIgazpererabotka, 2009-2013 

Table 45. Financial performance of ООО STG Engineering, 2008-2013 

Table 46. Financial performance of ООО SurgutNIPIneft, 2010-2013 

Table 47. Financial performance of ООО Lengiproneftekhim, 2008-2013 

Table 48. Financial performance of ОАО Giprotruboprovod, 2010-2013 

Table 49. Financial performance of ОАО ВNIPIneft, 2010-2013 

Table 50. Financial performance of ZAO NIPI EngGeo, 2010-2013 

Table 51. Financial performance of ZAO Tyumenneftegazproyekt, 2010-2013 

Table 52. Financial performance of ОАО Institut Neftegazproyekt, 2010-2013 

Table 53. Financial performance of ZAO Giprong-Ekom, 2010-2013 

Table 54. Financial performance of ООО LenNIIkhimmash, 2010-2013 

Table 55. Financial performance of ОАО VNIIneftekhim, 2010-2013 

Table 56. Financial performance of ООО Proyektny Institut Rossneftegazproyekt, 2010-2012 

Table 57. Financial performance of ОАО Omsky Institut Omskneftekhimproyekt, 2010-2012 

Table 58. Financial performance of ООО Premium Engineering, 2010-2012 

Table 59. Financial performance of ООО Gaz-Proyekt Engineering, 2010-2012 

Table 60. Financial performance of ZAO Proyektny Institut Nefteproyekt, 2010-2012 

Table 61. Financial performance of ОАО Giprogazoochistka, 2010-2012 

Table 62. Financial performance of ООО NPO Engineering Systems, 2010-2012 

Table 63. Financial performance of ОАО Nizhnevartovsk NIPIneft, 2010-2012 

Table 64. Financial performance of ZAO Firma Frikon, 2010-2012  

Map 1. Russian emerging oil production centers 

Map 2. Proposed major LNG construction projects from 2014 to 2020