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October 17, 2017

Sergey Kudryashov: “Equipment service and manufacturers benefited the most from the OPEC+ agreement”

     During the panel discussion ‘Finding a New Balance on the Oil Market’ as part of REW 2017, Zarubezhneft General Director Sergey Kudryashov noted that the agreement with OPEC+ countries on reducing oil production has stabilized the situation in the industry.

     “Equipment service and manufacturers benefited the most because orders for these industries remained the same. The agreement that was adopted did not lead to any serious consequences in the service segment”, Kudryashov said.

     Speaking about the decrease in the level of investments and the demand for equipment due to the drop in oil and gas prices, Kudryashov noted: “There has been a serious change in the price situation. A drilling rig previously cost about USD 150,000 a day, while today prices fluctuate around 40% of this cost, and the utilization capacity of both drilling vessels and semi-submersible platforms about 50% lower. The market of services in this area has not yet recovered”.

     Kudryashov said introducing new technologies in the future will enable Russia to increase oil production.

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