This item was published during the term of a previous administration that ended in April 2007
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Russia offers energy opportunities
22/06/2006
Scotland's position as a global leader in offshore oil and gas development could put Scots companies at the heart of massive new energy developments in Russia, Deputy First Minister Nicol Stephen said today.
Mr Stephen was in Moscow, the first ever visit to the country by a a Scottish Minister, to lead a trade delegation of more than a dozen oil and gas industry companies at the international 'Neftegaz' Oil and Gas Exhibition and at a meeting with the Sakhalin Energy Investment Company.
He highlighted the success of Aberdeen-based Oil States Industries (UK) Ltd, who have this week started specialist welding work on a multi-million pound contract for the massive Sakhalin Island offshore development.
Mr Stephen said:
"Scotland can boast an oil and gas industry that is globally recognised. Our work in the North Sea over the past 40 years means Scottish companies are ideally placed to play a part on the massive new energy developments cropping up right across Russia.
"None is bigger than the huge Sakhalin II project, Russia's first offshore development which is being run by the Shell-led Sakhalin Energy Investment Company.
"I was delighted to meet Aberdeen-based Oil States Industries UK at the Neftegaz exhibition, and to hear that work was now starting on a multi-million pound contract they have signed to do specialist pipeline work for the Sakhalin development.
"OSI UK, and a number of other Scottish companies like Wood Group, Howden Process Compressors, KCA Deutag and Weir Pumps, are now heavily involved in the Russian oil and gas sector, and it is clear from the discussions I have had in Moscow that there are huge opportunities for other firms to get involved.
"The Sakhalin development alone is estimated will yield around 45 billion barrels of oil - a similar figure to the remaining North Sea reserves - so the scale of work and opportunity is vast. It was also great to hear that there are now more Scots working in Sakhalin than across the rest of Russia put together."
Mr Stepehn was also a speaker at the Russian Petroleum and Gas Congress, which took place alongside the Neftegaz event, where 700 firms were exhibiting to an estimated 24,000 visitors.
The Minister added:
"I was delighted to hear first hand how much Russians understand and appreciate Scotland's expertise and experience across a range of sectors associated with the oil and gas industry.
"The sheer scale and pace of energy development across Russia, in Siberia, in the Barents Sea, in Sakhalin Island and elsewhere, means that there are excellent opportunities for Scottish companies get involved in the Russian market.
"I look forward to hearing news of more Scottish companies getting contracts and growing their business in the growing Russian market."