July this year seems to become one of the most important times in Russia’s oil history. Many reforms are planned for the country’s oil industry by the Prime Minister Vladimir Putin. Read details about Putin’s meeting in Severodvinsk and other key events of the last week at UralPolit.Ru.
July this year seems to become one of the most important times in Russia’s oil history. Many reforms are planned for the country’s oil industry by the Prime Minister Vladimir Putin. Read details about Putin’s meeting in Severodvinsk and other key events of the last week at UralPolit.Ru.
Mr. Putin discussed the future of oil industry in Russia
Russia’s Prime Minister Vladimir Putin held a meeting in Severodvinsk, Arkhangelsk Region, devoted to the “Development of oil and gas complex in Russia”. Governor of Yamalo-Nenets Autonomous District (YNAD/Yamal) Yury Neyolov and governor of Khanty-Mansiisk Autonomous District (Yugra) Aleksandr Filipenko were among active members of the session.
Yamal was acknowledged to be the richest region of Russia and of the world in oil and gas resources. Over 220 deposits were discovered in the area, 59 of them are being developed now, 19 are ready for exploitation. The biggest pools are Bovanenkovskoe, Kharasaveiskoe and Novoportovskoe on Yamal Peninsula, and Utrennee pool on Gydansky Peninsula.
Initial estimations of the amount of resources in the District, including the shelf of Kara Sea, indicate 125 trillions of cubic meters of gas and 23 billion tons of oil and condensate. By 2020 Russia expects to produce approximately 650 billion cubic meters of gas a year.
Bovanenkovskoe gas deposit is labeled the biggest. It is planned to start its development by the middle of 2011. Total resource capacity of this deposit approximates 115 billion cubic meters a year.
Aleksandr Filipenko, Yugra’s governor, agreed with Mr. Putin’s critique of the fuel pricing. He mentioned that the energy industry requires more governmental support. Mr. Putin noted that aviation fuel prices in Surgut, the heart of oil production, are higher than in European capitals. This is deemed a result of monopolist tendency in the fuel market. The prime minister strongly recommended to facilitate competition and open at least two different filling stations in each airport. Fuel prices may reduce by 15-20%, Mr. Filipenko reported.
Vice Prime Minister Igor Sechin supervises all questions regarding the energy industry. He spoke with Aleksandr Filipenko about more support for Western Siberian deposits. Currently, governmental investments are mainly directed to Eastern Siberian new deposits, while Western Siberia receives only 25% of investments, taken that it produces almost 60% of the country’s oil and gas. Yugra’s governor noticed that development of the new resources was the right decision, but conventional deposits also need support. He hopes the State Duma adopts tax benefits for marginal wells, low output wells and packed bed wells.
Better differentiation of wells, strict control of oil companies and inviting small and medium-sized businesses would help to increase output of Western Siberia oil and gas deposits, Mr. Filipenko added.
Newly appointed deputy of Mr. Neyolov concentrates on timber
Sergey Rusakov is a newly appointed deputy governor of Yamalo-Nenets Autonomous District. He held his first working meeting in Salekhard on timber legislation and problems in timber industry. Power officials, local executives and ecologists discussed contradictions of the old and new Timber Code.
Sergey Rusakov ordered to create a working group focusing on timber and wood issues and develop suggestions on how to improve the situation.
Latyshev and Medvedev spoke about investments
Russian President Dmitry Medvedev and presidential envoy in the Urals Pyotr Latyshev met last week in Kremlin to discuss the project Urals Industrial – Urals Polar.
Financials of the project were discussed. “The first tranche of 4 billion rubles for project work will be transferred on one of these days. We started work anyway, transfer was late due to technical reasons, but the situation will be solved”, Mr. Latyshev explained.
Mr. Latyshev also asked the question about investments into railway construction in 2010-2015.
«Each year we plan to spend about 25 billion rubles. We do our best to provide enough money in the budgets of 2010 and next years… 105 billion rubles for railway construction come from the federal budget, and 359 billion – from private investors”.
The President inquired about the amount of private investments into the project. Mr. Latyshev replied, several agreements had been signed already to cover 176 billion rubles, more to expect next year.
Academy of entrepreneurship will open in Tyumen
Deputy Governor of Tyumen Region Aleksandr Moor held a meeting devoted to social and economic development of the region in 2008. Two educational projects are planned for this year – Export Academy and Investments Academy – 2-months professional courses. Academy of entrepreneurship is another future project based on experience of Yalutorovsk. This smaller town already has School of young entrepreneur where students learn how to start a private business, what legislation and tax requirements there are, and where to ask for governmental support.
Violations to be fixed in Yugra and Yamal
Prosecutor’s office of Yamalo-Nenets Autonomous District and Yugra found numerous violations of safety and land regulations at several big companies. Thus, “Direction of hot water supply and engineering networks” did not have oil spill division ready as well as any instructions for such a division.
Surgutneftegas, OJSC, has several oil production and transportation facilities located on the municipal land. As reported by the prosecutor, there are no appropriate agreements between the company and municipal authorities regarding use of land.
LLC Transservice deals with chipping removal, but has no license adequate to such activity. The company will be fined.
Order to fix a number of violations was also sent to the director of CJSC Khanty-Mansiisk Oil Company.
UTair pays for Mi-8 crash
Air carrier UTair will pay 2 million rubles to the families of passengers who died or were severely injured in the crash of Mi-8 helicopter on July 2. The helicopter had 3 members of the crew and 13 passengers on board and headed to Vorgensky deposit near Noyabrsk. 9 people died in the crash, others were hospitalized with heavy burns. Interstate aviation committee will present its report soon.