Russia cuts dependence on imports in oil and gas projects from 60% to 38% — expert
Since 2014, the Russian Federation has done a lot to create domestic import-substitution programs and develop the national service market for suppliers and contractors, Alexey Fadeev underlined
MURMANSK, November 27. /TASS/. Russia can implement independently oil and gas projects in the Arctic in terms of technologies despite sanctions and banned transfer of technology in exploration and hydrocarbons production in high latitudes. Following the first sectoral restrictions in 2014, Russia manages to develop its technological sovereignty and to cut dependence of the domestic oil and gas complex on imports from 60% to 38%, Alexey Fadeev, Doctor of Economics, deputy chairman of the public council at the St. Petersburg Committee for Arctic Affairs told TASS.
"10 years ago, the Russian oil and gas industry's dependence on imports was at 60%, where this level was significantly higher in certain segments - more than 90% in exploration and production on the shelf, more than 80% - in production of liquefied natural gas, and so on. By now, the overall level has been significantly reduced to 38%, which is particularly valuable under conditions of the unprecedented sanctions," he said.
Since 2014, the Russian Federation has done a lot to create domestic import-substitution programs and develop the national service market for suppliers and contractors, he continued, pointing to dozens of Russian solutions that previously had been import-dependent. "Russia has developed technologies and production of rotary controlled systems, a fleet for hydraulic fracturing, the Crab unique complex for seismic exploration, the first offshore helicopter adapted to the Arctic, production of pumping and compressor equipment and drilling chemicals, and the Arctic Cascade innovative technology for natural gas liquefying that cuts the process cost by up to 30%," the expert said.
Comprehensive technology development
However, it is too early to say Russia does not depend on imports, he added. In 2023, the Ministry of Industry and Trade and the Ministry of Energy, jointly with the Institute of Oil and Gas Technological Initiatives, analyzed the Russian Federation's dependence on foreign equipment and technologies, where they saw that in the segment of exploration - production - refining, the Russian fuel and energy complex consumed about 1,400 items of equipment and technologies, of which 220 were import-dependent.
The country's approach to eliminating "technological deficits" was comprehensive. Roadmaps to achieve technological sovereignty of the Russian fuel and energy sector were developed in six key areas. In 2023, the Kronstadt Engineering Center was established, and its specialists in a short time mastered repairing of foreign-made turbines and began making parts for such installations, as well as the turbines.
"No doubt, this prompt development turns the Center into a center of competence in import substitution. It is worth mentioning separately, that the scientific and technological cluster there involves specialized research institutes, the Institute of Oil and Gas Technological Initiatives plans to move to the Center's facilities, as the institute deals with unified industry requirements for oil and gas equipment and technologies, and the Unified Test Operator responsible for consolidating the testing infrastructures in the Russian fuel and energy complex of Russia will follow suit, and besides the Center will have Applied Departments of Russian leading technical universities," the expert continued.
Russia has unique competencies in industrial oil production in the Arctic (the Prirazlomnoye project, the New Port project), in natural gas liquefaction (the Yamal LNG project), as well as in transportation of oil and liquefied natural gas in ice conditions. No other country has experience of the kind. "The current foreign economic and political challenges have pushed Russia to cut its dependence on imports and to have its own technological policy that should be based on cooperation between the state, energy companies, science and industry," the expert said in conclusion.