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Anti-Russian sanctions

US, EU sanctions prompt Russia to set up its own oilfield services provider - minister

"This will have a powerful synergetic effect for the engineering industry and high technologies," Natural Resources and Ecology Minister Sergey Donskoi said

© EPA/YURI KOCHETKOV

MOSCOW, September 13. /ITAR-TASS/. US and EU sanctions are a solid argument in favour of creating a major oilfield services provider in Russia, possibly, a state-run one, Natural Resources and Ecology Minister Sergey Donskoi believes.

“Today’s situation prompts creation of a major state-run domestic operator in the sphere of oilfield services. For instance, the geological exploration company Rosgeologiya may be used as a platform,” Donskoi said on his Facebook page. “This will have a powerful synergetic effect for the engineering industry and high technologies. Those who may have doubts regarding the capabilities of Russia’s own oilfield servicing may take a look at the financial reporting of Surgutneftegaz, for instance. That company is self-sufficient in terms of oilfield services and it is prepared to share know-hows.”

He added that in some statements by the biggest oilfield services company Schlumberger he heard regret, “which will be growing when its niche and the niches of other foreign partners will be taken up by Russian enterprises.”

“That’s an excellent chance for fast-tracked import substitution. Our partners will find it harder to get back,” Donskoi warned.

The United States on September 12 imposed a new package of sanctions on Russia over the situation in Ukraine. The United States banned the export of goods, services and know-hows in support of oil extraction in deep sea areas, in the Arctic and from shale seams to five Russian energy companies - Gazprom, Gazprom neft, LUKOIL, Surgutnefetegaz and Rosneft.

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