Live from OTC in Houston!
We Bring You the Global Oil and Gas Industry, 
Minus Russia

   I’m in Houston now, writing from the Offshore Technology Conference (OCT), one of the largest and most important international events on the oil and gas industry’s annual calendar. 

 

   I’m happy to report that, despite the recession, OTC drew the second largest crowd in its 40-year history – 66,820 visitors from 120 countries! This is encouraging given the fact that the highest attendance was in 2008 when oil prices peaked at $150 a barrel.

 

   What wasn’t so encouraging was the Russian presence – or shall I say, the lack of a presence. I know that Russian companies see the OTC as an American event. But comrades, please, it is international – and that means you too! 

I did hear two guys speaking Russian one day while crossing a street outside the Reliant Exhibition Center. And Gazprom did have a stand – but not in the main pavilion. That’s one Russian company among 2,500 exhibitors from 38 countries, come on guys! If I missed someone and you’re reading this, please e-mail me at p.szymczak@eurasiapress.com and I’ll feature your company in my next editorial (complete with an apology for having bypassed your stand at the OTC). 

 

   As for the OTC program, again Russia was nowhere to be found, other than an overview of Sakhalin I by project operator ExxonMobil. The OTC Industry Breakfasts which offer expert views on doing business in developing regions covered Brazil, offshore Asia, and the Caribbean this year. And in a news release, the OTC organizers talked about plans to create new events for Brazil and for the Arctic.  Would Russia show up for either of these?

 

   Last time I checked, Russia claimed title to two thirds of the world’s unexplored Arctic offshore reserves, and by yearend we expect a decision on moving forward with the financing on the world-class Shtokman project in the Russian sector of the Barents Sea. Gazprom, Total and StatoilHydro are partners and the service and supply companies that work with these global players are salivating over prospects of contracts.

 

   Why no Shtokman update at the OTC? I’m hoping people smarter than I know why because I’ve stopped trying to figure it all out. And I’m starting to believe my Russian friends might have a point when they try to blame everything unfathomable about Russia on the Mongol invasion in 1238 (give or take a year because we had no frontline reporting in the Dark Ages). 

 

   Anyway, for the record here are just a few highlights from companies with whom Oil&Gas Eurasia works in Russia. And they are, by the way, very interested in what happens to Shtokman.

 

   Ametek showed its Solartron line of wet gas and subsea flow measurement systems at the OTC and is planning to launch the same products into Russia during the MIOGE exhibition in Moscow, June 23-26 (visit www.oilandgaseurasia.com/advertising).

 

   Cummins launched its new QSK60 Offshore Drilling Power Module at a press event that surveyed the full line of Cummins products. Cummins works in Russia through a joint venture with the Russian company NG-Energo to develop and service drilling rig power systems for Siberia. (search “Cummins” at www.oilandgaseurasia.com).

 

   Emerson Process Management used the OTC as a platform to announce its acquisition of Norway’s Roxar. The deal creates the world’s first integrated automation solutions company offering products for subsea oil and gas reservoirs, platform and floating production, transmission and refining and processing. Emerson has a wide range of operations in Russia. The process automation and instrumentation manufacturer, Metran, located in Chelyabinsk region, is a wholly owned subsidiary of Emerson Process Management.

Expro, the international oilfield services company, launched its ActiveSONAR ™ next generation clamp-on sonar metering technology at OTC. At a news conference, Expro CEO Graem Coutts called 2009 “a hugely significant year for Expro.” Expro, by the way, did well testing on Shtokman and has active operations in Russia.

 

   Flowserve had on show at the OTC two items currently sold into Russia: its TSP twin screw rotary pump and its Azimuthing Thruster for offshore use including semi-submersible drill rigs, FPSOs, drill ships, crane and pipelay vessels. Flowserve’s oil and gas marketing manager, Marc Fontaine tells OGE that Flowserve sold the azimuthing thruster to Gazflot for its CS50 semi-submersible drill rigs that will drill at Shtokman. Flowserve plans to compete in the multiphase pump market in Russia as well.

 

   GE Oil&Gas which is actively growing it’s presence in the Russian market (along with GE Energy and Jenbacher engines) pulled out all the stops educating press to its ever growing line of products for the oil patch. Among other things, GE had on show the Hydril pressure control business it recently acquired from Tenaris. GE Oil&Gas was awarded also the coveted “Spotlight on New Technology Award” by the OTC for its next generation subsea electronics module, the VetcoGray SemStar5. The VetcoGray SemStar5 (previously codenamed SEM5) is a fifth generation Subsea Electronics Module for use in subsea production control systems. 

 

   And last but not least, here’s the latest from Oil&Gas Eurasia. 

First, our American colleagues can expect to be hearing now from our new North American sales representative, Jim Heath (that is, if you didn’t already meet him at the OTC). Jim is no stranger to oil and gas, as he previously represented Hart Publications after they were purchased by Phillips Publishing. Jim knows his way around an oil rig and he knows his way around the oil patch in the United States and Canada. And he’s a true believer in where the oil and gas industry is headed these days – reserves in places like Russia, Africa and Brazil – controlled largely by national oil companies; and demand coming from China. Welcome aboard Jim!

 

   Our Russian friends will be interested to know that Oil&Gas Eurasia now represents Cairo-based Petroleum Africa magazine (www.petroleumafrica.com) to Russian companies wanting to advertise to national oil companies throughout the African continent (North Africa and Sub-Saharan Africa). OGE can plan your media program and adapt your marketing materials to Petroleum Africa’s English-speaking audience. Contact our Moscow sales team leader, Anna Bovda, for details: a.bovda@eurasiapress.com.

 

   UPCOMING CONFERENCES – Remember MIOGE is just around the corner and Oil&Gas Eurasia is your best value MIOGE Media Partner. We distribute up to 8,000 bonus copies of OGE at the show, in addition to our usual 12,000 controlled qualified circulation throughout Russia. And we’re the only publication that proves this with a BPA audit. Contact sales@eurasiapress.com. 

And  while we’re just getting into summer, it is not too early to start talking about the RAO CIS 9th International Conference & Exhibition on the Russian Arctic Shelf held biennially in St. Petersburg. Oil&Gas Eurasia is proud to have been chosen General Information Sponsor for this important event. We will be one of only two publications in all delegate bags and we’ll be producing a daily conference newspaper as well for the event organizers. For information on marketing and advertising opportunities, contact sales@eurasiapress.com.

So that’s about it. I have a plane to catch to Chicago, and then back to Moscow. I’ve flown American Airlines non-stop between Chicago and Moscow three times since November and the first two times, the flight was only half full. You could you could sleep across three empty seats! Not so anymore. The Chicago flight is now as full as Singapore Airline's non-stop between Moscow and Houston. Perhaps better economic times are just around the corner! Heck, considering that United Airlines recently launched non-stop service between Washington Dulles and Moscow, those Russian companies that stayed home this year can take their pick of airlines for OTC 2010.