Reduction in drilling is the main danger for West Siberian oil and gas sector's development

If Russia continues its reduction in drilling in H2 2014 then next year it can face a reduction in hydrocarbons yield, the Chairman of the Union for Oil and Gas Producers, Y. Shafranik says at the session in Khanti-Mansiysk. A reduction in drilling is the main danger for West Siberian oil and gas sector's development, in his opinion. Within the 5 last years of the USSR which finished in 1992, the state got 1,100 drilling rigs. Within the next 20 years, in 1992 – 2012, it got 400 drilling rigs, and a half of them are imported. He reminds that Uralmash plant that used to produce 300 drilling rigs a year reduced its capacity to 25-30 drilling rigs. To maintain the current oil yield, it’s necessary to substitute 1,000 outdated drilling rigs and to add to them 1,000 new drilling rigs, he thinks. However it needs immense funds because one drilling rig costs $25 million on average. They need to continue intensive drilling, besides from substitution of the outdated fleet of the drilling rigs. Mr. Shafranik reminds that the major responsibility for the maintenance of the status of the Russian economic and energy base lies on the Government and the business.

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