Russian Oilfield Services Companies: New Opportunities and Challenges in Light of the Current Geopolitical Environment

The Russian oilfield service market has undergone sweeping changes over the past year. While earlier, the main drivers of developments were the depletion of easily accessible hydrocarbon resources and the need to develop tight reserves using innovative technology, recently the geopolitical factor has taken front and center stage. 

The embargo laid by the US and EU on supply of cutting-edge technologies and equipment for the Russian upstream sector is dramatically transforming the domestic oilfield service market. In the foreseeable future foreign contractors are likely to be replaced by either oilfield service units belonging to the Russian vertically integrated oil companies (VIOC) or independent contractors from Russia or Asia. The recent termination of cooperation between Gazprom Bureniye and Halliburton due to the imposed ban is as a highly demonstrative example.

Another illustration is the recent actions of Rosneft, which acquired in June a part of Weatherford’s drilling and well workover assets in Russia and later signed a strategic agreement with North Atlantic Drilling, passing the latter around 150 drilling rigs and signing a long-term contract for their usage. Thus, Rosneft seeks to ensure access to the essential technologies amid the current geopolitical uncertainty.

The technological sanctions imposed against the Russian O&G industry will also service as a powerful stimulus for development of the domestic oilfield service market. The Russian companies have been confronted with the vital need to raise their competitive capacity to strengthen their market positions. In those segments where the Russian players fail to come up with advanced technologies, a market redistribution may take place in favour of Asian contractors, for which the current situation also provides new opportunities.

RPI has published studies on the Russian Oilfield Services Companies since 2005. The company’s experts have been closely tracking all the changes that have taken place in the industry and have employed the knowledge base and expertise accumulated to compile and prepare the new materials.

This study contains updated information on the production facilities, key customers, areas of activity of Russian oilfield services companies, as well as their operating and financial performance. The report has also been revised to include sections regarding the reaction of companies to the sanctions imposed by the international community against the Russian oil and gas industry.

The analysis in the study has been carried out in the context of major OFS companies: independent contractors; companies that are part of oilfield service holdings and VIOCs; international service companies operating on the Russian market. Overall, this report is a supplement to the earlier issued Russian Oilfield Services Market, which focuses on market analysis from the standpoint of customers.

Each company profile in this study covers the following:
• Company overview
• Structure of the company (main production divisions)
• Areas of activity
• List of services provided
• Stock of main production equipment
• Main customers
• Production capacities (as of year-end 2013)
• Financial indices (as of year-end 2013)
• Proposed response measures vis-à-vis external market challenges

The study Russian Oilfield Services Companies is a unique product, providing the most up-to-date information on the OFS companies operating on the domestic market. This product could be a valuable tool to market players in the strategic planning process, allowing them to gain the clearest possible picture of the competitive environment, assess their positions from the vantage point of comparative analysis, obtain objective parameters to gauge the results of their activity and better evaluate all possible risks in light of the current geopolitical environment.

In addition to oilfield services companies, this study could be of interest to E&P companies, enabling them to more thoroughly study the range of contractors that provide the required services.

Investors on the market could find the information in this report necessary to examine whether it is reasonable to make investments as well as to mitigate the risks of subsequent investments or size up the potential for M&A deals.

Additional module: ASIAN OILFIELD SERVICE COMPANIES
(The module may be optionally ordered in addition to the main report) 

Release Date: December 2014    
Volume: 15-20 pages
Price: 395 Euro (19 750 RUB)

RPI would like to bring to your attention a new optional module to the company’s report devoted to oilfield service companies operating in Russia.
The module contains profiles of Asian service companies that could potentially enter the Russian oilfield services market in the near future.

Each company profile includes the following information:
• Company overview
• List of services provided
• Main customers
• Activity in Russian or plans to enter the Russian market
• Information on the legal entity registered in Russia (if any)
• Contact data
The materials in this module can help OFS companies operating in Russia to assess their individual positions in terms of comparative analysis with Asian contractors and devise a strategy for future development in case competition heats up on the Russian OFS market.

Aside from oilfield service companies, the information provided in the module could be of interest to oil producers, offering them the opportunity to study in greater detail the range of potential contractors from Asia, for which entering the Russian market has become a priority. 

2.1. Overview of the drilling services market 

2.1.1. Market dynamics 

2.1.2. Overview of the competitve environment 

2.1.3. Market players’ production capacity

2.1.4. Reaction of companies to foreign sanctions 

2.2. Independent contractor profiles 

2.2.1. Eurasia Drilling Company Ltd. (including Burovaya Kompaniya Eurasia (BKE), BKE-Shelf and SGK-Burenie 

2.2.1.1. Burovaya Kompaniya Eurasia (BKE) 

2.2.1.2. SGK-Burenie 

2.2.1.3. BKE-Shelf 

2.2.2. Gazprom Drilling 

2.2.3. Eriell 

2.2.4. Integra-Burenie 

2.2.5. Tagrin Burenie (former Bashneft-Burenie)

2.2.6. C.A.T Oil Drilling (C.A.T. Oil AG) 

2.2.7. KCA Deutag

2.2.8. Nabors Drilling

2.2.9. NSH Asia Drilling (Neftserviceholding) 

2.2.10. Investgeoservice Group of Companies (GC) 

2.2.11. Servisnaya Burovaya Kompaniya 

2.2.12. Sibirskaya Servisnaya Kompaniya (SSK) 

2.3. Profiles of drilling contractors of VIOC 

2.3.1. RN-Burenie 

2.3.2. Orenburgskaya Burovaya Kompaniya (OBK), (part of Rosneft since April 2014) 

2.3.3. Former drilling assets of Weatherford (part of Rosneft since August 2014) 

2.3.3.1. Nizhnevartovskburneft 

2.3.3.2. NPRS-1 

2.3.3.3. Orenburgneft (OBN) 

2.3.4. Drilling Division of NGK Slavneft 

2.3.5. Drilling divisions of Surgutneftegaz 

2.3.5.1. Exploration Department

2.3.5.2. Drilling Department 

2.3.6. Burenie (UK Tatburneft) 

3.1. Overview of the well servicing, workover and sidetracking markets

3.1.1. Market dynamics 

3.1.2. Overview of the competitive environment 

3.1.3. Market players’ production capacity 

3.1.4. Reaction of companies to foreign sanctions 

3.2. Profiles of independent companies 

3.2.1. Anega-Burenie 

3.2.2. Belorusneft-Sibir 

3.2.3. Eurasia Drilling Company Ltd. (including BKE Well Services Branch and SGK-Burenie) 

3.2.4. Integra Group 

3.2.5. C.A.T. Oil

3.2.5.1. KATKOneft 

3.2.5.2. KATOBNEFT 

3.2.6. KRS-Servis (RU Energy Group) 

3.2.7. RU-Energy KRS-MG (former Megion-Servis) 

3.2.8. Permnefteotdacha (Nefteservisholding) 

3.2.9. Samotlorneftepromkhim 

3.2.10. Sibirskaya Servisnaya Kompaniya (SSK) 

3.3. Profiles of VIOC oilfield services divisions 

3.3.1. Bashkirskoye Upravelenie Remonta Skvazhin (BURS) (Bashkir Well Services Department)

3.3.2. Targin Burenie (former Bashneft-Burenie) 

3.2.12. Former assets of Weatherford (part of Rosneft since August 2014) 

3.2.12.1. Nizhnevartovsk Well Workover Company-1 

3.2.12.2. UKRS 

3.2.12.3. Chernogornefteservis 

3.2.12.4. Belorusskoye UPNP i KRS

3.3.3. Mamontovsky KRS 

3.3.4. Surgutneftegaz well servicing and workover departments 

3.3.5. Tatneft-RemServis 

4.1. Overview of the market 

4.1.1. Market dynamics 

4.1.2. Overview of the competitve environment 

4.1.3. Market players’ production capacity 

4.1.4. Reaction of companies to foreign sanctions 

4.2. Profiles of independent companies 

4.2.1. Calfrac Well Services Ltd. (CWS) 

4.2.2. C.A.T. Oil AG (KATKOneft) 

4.2.3. JV MeKaMineft 

4.2.4. PetroAlliance Service Company Limited 

4.2.5. Trican Well Services

4.2.6. Weatherford

4.2.7. Halliburton

4.2.8. Schlumberger

4.3. Profiles of VIOC oilfield services units 

4.3.1. Surgutneftegaz 

4.3.2. Tatneft-RemServis 

5.1. Overview of the market 

5.1.1. Market dynamics 

5.1.2. Overview of the competitive environment 

5.1.3. Market players’ production capacity 

5.1.4. Reaction of companies to foreign sanctions 

5.2. Profiles of independent companies 

5.2.1. Integra 

5.2.2. PetroAlliance 

5.2.3. Servisnaya Transportnaya Kompaniya (RU-Energy Group) 

5.2.4. SSK 

5.2.5. Trican Well Services

5.2.6. Spetsialnoye Tamponazhnoe Upravlenie (STU) (Specialized Cementing Department) (Weatherford) 

5.2.7. Halliburton

5.3. Profiles of VIOC oilfield services units 

5.3.1. Surgutneftegaz 

5.3.2. Leninogorskoye UTR (Tatneft) 

6.1 Overview of seismic exploration and geophysical survey market 

6.1.1. Market dynamics 

6.1.2. Overview of the competitive environment 

6.1.3. Market players’ production capacity 

6.1.4. Reaction of companies to foreign sanctions 

6.2 Company profiles 

6.2.1 IG Seismic Services

6.2.2 Bashneftegeofizika 

6.2.3 Volgogradneftegeofizika 

6.2.4 Gazpromneft – Noyabrskneftegazgeofizika 

6.2.5 Geofizservis 

6.2.6 Kogalymneftegeofizika 

6.2.7 Komineftegeofizika 

6.2.8 Krasnodarneftegeofizika 

6.2.9 Nefteservisholding 

6.2.9.1 PITTS Geofizika 

6.2.9.2. Universal-Servis 

6.2.10 Nizhnevartovskneftegeofizika 

6.2.11 Orenburgneftegeofizika (Baker Hughes) 

6.2.12 Permneftegeofizika 

6.2.13 Samaraneftegeofizika 

6.2.14. Sevmorneftegeofizika 

6.2.15 Sibirneftegeofizika 

6.2.16 Stavropolneftegeofizika 

6.2.17 TNG-Group 

6.2.18 Yuganskneftegeofizika 

6.2.19 Yakutskgeofizika