PGS: Now is the Time to Grow Russian Business

June 21, 2009

   That might be why he views Russian reality through the eyes of an expat, while at the same time, his St. Petersburg upbringing and education puts a Russian spin on things as well. This duality gives Dementiev an advantage as he navigates the Russian business environment with his own, fresh, perspective. In a recent interview with Oil&Gas Eurasia, Dementiev talked about his company's work in Russia and abroad while he also shared his thoughts on growth prospects for the industry.

Oil&Gas Eurasia: What projects in Russia and the CIS are at the top of PGS's agenda?
Alexander Dementiev: Currently we are participating in a large tender in the Caspian sea. The scope of work, estimated at three years, is very large and may require 3D data acquisition, using ocean bottom cables.
After having done the preparatory work we have become certain that we have all the necessary technical, financial and organizational resources to ensure completion of work in the allotted time without compromising quality, safety, or the environmental integrity of the Caspian.
We plan on  involving a considerable number of local companies as subcontractors, which ensures a strong national presence in the work conducted during the project. If we win this contract, it will be a major step forward for our work in the CIS.
The Caspian region is very complex; you can’t bring large ships into it. The Caspian Sea is a shallow sea, and only certain vessels should be used there.

OGE: What does PGS Company represent on an international scale?
Dementiev: The PGS Company is a global geophysical company that is a leader in the field of offshore seismic research worldwide. Additionally. we have an onshore division that operates mainly in the U.S. and Latin America. PGS Headquarters are in Oslo, and other main offices are located in London, Singapore, Houston. The company operates in 30 countries and operates around 30 vessels. including the Caspian fleet. In contrast with its many competitors, PGS offers a complete range of works ranging from date acquisition to processing and finally to data interpretation. Data processing requires very powerful data processing centers; the software is developed in-house. The data processing centers are located in every country we have a presence because, according to legislation in most countries including Russia, the data must be processed in the same country where it is are collected. In 2007, we set up a large data processing center in Moscow. Our main competitors worldwide include major companies such as CGG Veritas and Western Geco, a member of the Schlumberger group.

OGE: In what direction is your business expanding?
Dementiev: One of the promising trends of our business development is the “multi-client” approach. We work a lot with the governments of many countries, which hold licensing rounds and tenders. In these cases, our company often invests its own money into research and, once the license is sold, we receive compensation for our work related to the contract. It is more beneficial for both state and the