Long-term contracts of oil workers with service contractors to be not very real in the current market conditions

Participants of the oilfield services market and producers of drilling equipment would like to revise terms of cooperation with their customers. During a meeting of the Advisory Council for Cooperation of oil and gas companies with related industries under the Chairman of the State Duma’s Energy Committee a resolution, according to which service structures and equipment suppliers were offered to conclude contracts with producing companies for 3-5 years instead of the current annual contracts, was adopted.
Besides, the contractors want to decrease the time of payment for rendered services: from the current 60-90 to 30 days, and to register this in laws and regulations. The market is trying to attract not only customers, but the state to solving the problem. In particular, the resolution of the Federal Antimonopoly Service (FAS) orders to provide an exception of a customer’s requirements on deferment of payment for delivered products or rendered services for more than 30 days from the tender conditions and contracts for the supply. And also to take precautionary measures to avoid the requirements of a customer to decrease the contract price during the execution of the contract, if such reduction isn’t caused by changes in other essences of the contract. The Head of the FEC Control Department of the FAS Dmitry Makhonin in interview to the Samotlor Express considered these requirements unrealistic in the current market conditions, but made it clear that guiltier of pressure towards unprofitable terms of the cooperation may be punished, if someone of the contractors decides to lodge a complaint with the antimonopoly authorities against him.