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Douglas Westwood Report: Russian Onshore Oilfield Services Market

18 June 2009

Douglas-Westwood has published the second edition of its acclaimed Russian Onshore Oilfield Services Market Report. A report detailing the multi-billion dollar opportunity in the sector, through to 2013.

“Russia has not been exempt from the effects of the global financial crisis and the industry is set for a period of downward pressure in both activity and pricing,” noted Rod Westwood, the lead Analyst on the report. Over 2009 and 2010 the Russian Onshore Oilfield Services (OFS) industry is set to see overall decline as downward pricing pressure and lower exploratory activity impacts the market, although development activity remains relatively stable.

While there will be reductions in activity and pricing in the services market, investment in exploiting the country's vast remaining oil & gas reserves will reverse this trend in two or three years time, driving expenditure in seismic acquisition, drilling and workover, which is expected to reach $27.1 billion by 2013. As the industry continues to look east to unlock new reserves; ideologies are looking to the west and the adoption of western business models, highlighted by a number of recent acquisitions in the sector and the continued divestment of traditional in-house OFS operators to independents.

This synthesis of Eastern and Western practices is carving out new opportunities in the OFS industry and opening up the Russian market in an unprecedented fashion, providing an invaluable opportunity for new players to capture a piece of this market which is positioned for future growth.

The Douglas-Westwood Russian Onshore Oilfield Services Market Report 2009-2013 provides a unique, systematic breakdown of the OFS industry by region, makes a comprehensive examination of future costing in the workover & drilling sectors and offers exclusive market forecasts.

In common with other reports in this acclaimed series, the report is designed for executive readers and does not assume the reader has a detailed technical knowledge of the subject or the characteristics of the Russian market, its evolution and buying practices.

An acclaimed series
The Russian Onshore Oilfield Services Market Report 2009-2013 is the latest in an acclaimed series of business studies used by organisations in over 50 countries worldwide. These include the oil majors, investment banks, offshore contractors, agencies and departments of governments.

•Executive summary - market drivers, short-term effects of the credit crunch, new technology, the market and conclusions.
•Russia in the context of global energy supply - global energy demand & supply, oil reserves, oil & gas production and Russian production in context
•The Russian energy business - including political and economic transitions, state involvement, Russian energy policy, profiles of major hydrocarbon suppliers, the domestic energy landscape, Russian E&P expenditure, in-house providers and the impact of Western OFS providers, entry strategies and technology.
•Technical overview - seismic 2D/3D, formation evaluation, drilling, workovers, ESP, artificial lift
•Competitive landscape - overview, review by Drilling & Workover, Logging & Seismic, Rig manufacture & Service and ESP Market. Profiles of selected domestic and Western competitors.
•Regional overview - Eastern Siberia, Far East + Sakhalin, Timan-Pechora, Volga-Urals, Western Siberia
•Model assumptions - Russian expenditure and market comparisons, equipment market model, drilling & workover splits, exploration & production wells, active drilling & workover rigs, workover operations & well depths, wellstock & service split, seismic crews & rig manufacture (supply & demand) Russian onshore rig fleet age, rig cost & lead times & pricing dynamics.
•Market forecast - the OFS market split by type: drilling, workover & seismic acquisition and by region: Timan-Pechora, Volga-Urals, Eastern Siberia, Western Siberia & other. Components markets: rig & crew, completions, perforation, fishing & milling, bit programme, cementing, logging, fluids, casing, directional drilling, tubing, fracturing, drilling rigs & electrical submersible pumps.

About Douglas-Westwood
Douglas-Westwood provide advisory services as complementary partners to our clients worldwide as part of their strategic planning process. We develop and test advanced competitive strategies for new products, new business streams, mergers and acquisitions, through market insights, modelling and simulation. Our research-based approach has been used by clients considering the future direction of their business from a number of perspectives – financial, customer value enhancement, or internal operations. More information.

Douglas-Westwood is a leader in market analysis and transaction support in the energy sector, with recognized expertise in offshore oil and gas exploration and production, as well as wind and tidal power. The company's market survey, research, analysis and strategy services are used by clients in 50 countries with over 550 assignments completed since formation in 1990. Its client roster comprises the world's leading financial and energy companies, including JP Morgan, Morgan Stanley, Simmons & Company International, RBS, Shell, BP, ExxonMobil, Schlumberger, Baker Hughes, 3i and Arcapita.

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