Remote Field Work Powers Equipment Sales

By Elena Zhuk, June 26, 2014

As Western Siberian fields are already highly depleted and production moves into Eastern Siberia and the Far North, the issue of power generation at distant and isolated fields becomes more pressing. As a result of this dynamics, the demand for generator equipment is growing, and it appears as if this trend is likely to continue.

Equipment producers note that sales have increased over the last few years. Zvezda-Energetika is a leader in the Russian domestic market for power generation at isolated fields. According to Alexei Andreev – Zvezda-Energetika’s division director for complex projects – demand is growing by approximately 15 percent a year. Zvezda-Energetika supplies very little equipment to central Russian cities that already have generation capacity. Ninety percent of sales are to remote regions – primarily Western Siberia, but there are also projects in Kamchatka, on Sakhalin, and several projects on the Yamal Peninsula. “We are noticing growth in demand for equipment in general, and an increase in desired unit capacity for generators to support drilling work and other integrated stations for pumping and production facilities,” says Andreev. The jump in demand, he believes, is being driven by projects like Bovanenkovo-Ukhta, VSTO, Sila Sibiri (Power of Siberia) and projects on Yamal.

At UEC – Gas Turbines, growth in sales of units for energy generation at remote sites is 10-20 percent per year, lead manager Alexander Itkin tells OGE. Itkin notes that over the recent past there has been steady growth, and believes that the trend will continue due to constant development of difficult-to-reach fields, including shelf fields. At present UEC – Gas Turbines is manufacturing four GTA-6RM gas turbine power plants for the Shingirinskoye field (Gazpromneft-Vostok) and six GTA-16 gas turbine power plants for the Novoportovskoye field (Gazpromneft-Novy Port).

The potential of this market is enormous, believes Roman Marchishin, head of the Commercial Division at Yanmar RUS, a subdivision of the Japanese company Yanmar, which has entered the Russian market with generators that run on diesel fuel. “According to Russia’s Energy Ministry, 5,200 new wells are appearing per year. In order to supply the brigades working on these wells with energy, around 10,500 generators per year will be required. Given the harsh conditions in remote fields, the length of the equipment replacement cycle is lower, at an average of five years. As such, market
demand is 2,000 units per year.” In addition, Marchishin notes that after the recent political decision to supply China from fields in Western Siberia, Yanmar RUS is expecting a significant hike in demand for diesel generators from builders and producers, as well as from transport and other companies working in remote regions in the east of the country.

“There is a constant demand for power supply equipment, although sales volumes can vary year to year depending upon the needs of particular sites,” says Nick Royal, sales manager at UK-based Centrax Gas Turbines. Eight years ago, Centrax began providing TNK-BP with 3.9 to 5.2 MW generators that use Rolls-Royce gas turbines. Initial successful operations led to