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Home / Issue Archive / 2008 / July #7 / Summarizing Neftegaz 2008

№ 7 (July 2008)

Summarizing Neftegaz 2008

The 12th international exposition “Neftegaz 2008” took place in Moscow and became the industry’s most prominent event of the year...

By Elizaveta Bushueva

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The 12th international exposition “Neftegaz 2008” took place in Moscow and became the industry’s most prominent event of the year. The theme of the exposition, “Equipment and Technologies for the Oil and Gas Complex,” attracted the attention not only of the oil and gas industry’s representatives, but also of government institutions.

State Duma Deputy Oleg Gorbunov, who attended the opening ceremony, noted the main tendency of the Russian oil and gas business – that the country has begun attracting international investors, refusing the raw-exports role. This is the reason that the theme of new technologies implementation has become currently so central for Russia. Gennady Shmal, president of the Russian Petroleum Union and Chairman of the Board of Directors of Rosneftegazstroi, and Oleg Soskovets, president of the Association of Financial Industrial Groups, attended the opening ceremony and briefly greeted participants and visitors of the exposition.
This year 1,062 participants from 40 countries, including Germany, Great Britain, France, Norway, the Czech Republic and Japan, attended the exposition. The goal of Neftegaz 2008 was not only to demonstrate new technologies from the leading European, Asian and American manufacturers of oil and gas producing and oil-refining equipment, but also to establish partnerships among participants in the exposition, create direct commercial connections, and sign new cooperative agreements. Gennady Shmal, who actively follows the industry’s development, noted that “after an exposition, new enterprises and partnerships appear,” and that such expositions thus stimulate the industry’s progress.
Neftegaz 2008 demonstrated recent product innovations in various areas of the industry: geological and geophysical research, oil and gas field development and exploitation, transportation and storage of oil, gas and petroleum products, engineering and technology of pipeline construction and exploitation, pumps, compressor equipment, pipe production, information and software supply, and many other areas.

The majority of the companies that took part in the exposition are not newcomers here. They come mostly expecting to attract potential clients, find new sales markets, and study new product developments presented by competitors. Every participant had an exhibition booth demonstrating new technology, development, or equipment. For instance, Lufkin, which has participated in the exposition since 1996, presented a device for measuring pressure in the bucket rod at the oil well Sam Well Manager, which received certification this year. The company Neftegazovye Sistemy was promoting the new development of an oil, gas, and water divider with direct heating, which had already been tested in the field. The company’s booth also presented new products from the leading Russian enterprises, whose exclusive representative at the Russian and foreign market is the company Neftegazovye Sistemy: Tyazhpromarmatura, Elektrotyazhmash-Privod, Kurgankhimmash, Nefteavtomatika. As part of Neftegaz 2008, Neftegazovye Sistemy also conducted the seminar “New Prospective Developments for the Fuel and Energy Complex,” in which the company’s engineering center specialists presented reports.
The American company Mi Swaco was another longtime participant in the Neftegaz Exposition. The company has been working in Russian drilling, well servicing, and exploitation for fifteen years. At Neftegaz 2008, Mi Swaco presented a unique development for Russia – compact floatation units, which are considered a profitable alternative to traditional systems of bottom water treatment.
British Rolls-Royce, one of the regular participants in the exposition, this year had a booth that informed visitors of new equipment modifications, such as gas-turbine power engines, radial flow compressors, flare gas circuits of lean mixture, and other devices.
GE Oil and Gas, one of the world leaders in technological development and manufacturing of oil and gas producing and oil-refining equipment, presented mostly time-tested devices, and its aim in participating in the exposition was to establish new contacts and study competitors’ proposals.
The Danish company Swagelok’s booth featured a new modification of the orbital argon arc welding system with a computerized power source and touch-screen operation mode. Less advanced variants of this system are already being used with success in Russia.
Siemens company, as usual, introduced innovative solutions in exploration, exploitation, transportation, and refining of oil and gas. The Siemens booth featured rotating and electric equipment for plants with GTL technology, rotating and electric equipment for plants, transportation systems, LNG facilities’ terminals, and rotating and electric equipment for oil and gas pipelines.
Among the innovations presented by the German company Bentec, Nomad, the highly mobile drilling unit for drilling in the desert and steppe areas is worth mentioning. Nomad is in high demand at the drilling units’ market. Another highly mobile drilling unit presented by Bentec was the compact unit Euro Rig. Representatives of the company put a special emphasis on the minimal environmental damage of Bentec’s equipment, and the unit’s mobility, which saves time on assembly and disassembly.
Dresser-Rand, which presented a highly integrated compression system this year, attracted clients with its exclusive development. The first sample of this system is already in production.
Among the companies presenting their equipment and technology at the Neftegaz Exposition for the first time was Ametek, which had not participated at the exposition as a corporation. Ametek was previously represented at such expositions by its dealers, so this time the company tried to present information about the whole range of its equipment, which includes calibration and gauging instruments and other equipment.
The 6th Russian Oil and Gas Congress was an important part of the exposition. The main themes of the congress were such issues as Russia’s role and place in international energy cooperation, tax regulation of the oil and gas sector, economic development as the result of this sector’s growth, the outlook of the oil and gas service development in our country, and other equally important topics.
Alexander Yakovenko, Deputy Minister of Foreign Affairs of the Russian Federation, reviewed in his speech the connection between climate change and energy policy: “As we deal with the energy challenge in today’s world, our goals go beyond the purely economic. This became apparent not only during the latest discussions at various forums, but also in our everyday lives. Lately, global climate change is a theme that everyone hears a lot about. Energy and climate change are two interconnected issues that are increasingly becoming key factors in contemporary politics.” According to Yakovenko, to resolve these issues the world community needs to consolidate its efforts as the tasks the community has to deal with are truly the global ones.  Among Russia’s achievements in the battle with global warming is the reduction of general volume of carbon emissions by 29 percent (in 2004 compared to 1990 as a benchmark), whereas according to the Kioto Protocol, Russia had to maintain emissions at 1990 levels.
Yuri Lipatov, the energy chairman in the State Duma’s Federal Assembly, spoke on legislative provisions for Russia’s oil and gas sector. “The experience of Russia and other countries testifies that governmental participation is essential in creating a steady functioning of the oil and gas complex and the optimization of a total socio-economic effect of its work,” said Lipatov. “It is essential to have a comprehensive system of state regulation from long-term forecast to operational measures. In view of preparation of the new draft of Russia’s energy strategy, it is necessary to provide, among other mechanisms of its implementation, a special chapter regarding the legislative provision of the priority tasks of the oil and gas industry.”
In his remarks to the congress, Lipatov also discussed the depletion of the oil fields. “A substantial proportion of the petroleum sources explored in Soviet times is depleted, including the West Siberian fields, which are the main oil and gas supplier to domestic and foreign sales markets. The existing potential of resources is hard to reach, difficult to process, and is represented mainly by minor fields. This demands additional investments in infrastructure development and in new technology, and, as a result, a longer period for development.”
Vladimir Khristenko, general director of Rimera, spoke on the outlook for oil and gas service development in Russia. He evaluated the existing petroleum service at $4 billion and approximated its value by the year 2010 at $65 billion. The main tendencies in the business, Khristenko pointed out, would be individualized concepts for companies and consideration of their specific needs.
During the three days of the congress, participants were able to discuss a wide spectrum of issues related to oil and gas service, offer varied approaches to dealing with those issues, describe possible prospects for the industry’s development, and speak about successes in increasing the sector’s effectiveness.
The exposition’s participants, as well as the speakers at the congress, expressed solidarity in their expectations for the development of the oil and gas industry, the appearance of more innovative approaches, and the increase in the sector’s economic value.

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