Seagoing Logistics Solutions to Oilfield Material Supplies

(By Tony Wood, Robert Martin ; INSROP Working Paper No. 50 – 1995, III.07.5)


The aim of the paper 'Seagoing Logistics Solutions to Oilfield Materials Supplies' is to evaluate the market for seabourne logistic solutions to material supplies to the oilfield developments in the Western Siberia and Timan Pechora regions of Russia.

The key to evaluating this market is to estimate the imported materials and equipment requirements of the projects likely to go ahead in these regions. The paper adopts a precise methodology to ascertain these requirements, which involve identifying the procurement pattern likely to be used in oilfield projects for this region and also identifying planned projects, together with their likely timescale and sequence. Cost estimates for the projects were produced, utilising MAI's globally-used Que$tor cost evaluating suite of programs. In conjunction with a knowledge of the likely procurement patterns, the cost estimates were used to derive the volume of imports of equipment and materials into the region.

The paper examines the status of FSU oilfield equipment, manufacturing and services. Design standards, specifications and reliability of locally-produced equipment are discussed together with an outlook - there is a growing number of manufacturing and service joint ventures being established in Russia. Transportation and logistics for importing equipment into the region is also addressed, and considers road, rail, river and air transportation provision.

It was found that international investors undertaking large projects tend to make extensive use of imported goods and services, and that large projects with mainly Russian funding will also use a significant proportion of imported goods and services. By contrast, it appears that the smaller projects and those wholly funded by domestic Russian companies tend to make use of mainly domestic equipment, materials and services.


    Tony Wood, Robert Martin, 1995, Seagoing Logistics Solutions to Oilfield Material Supplies, INSROP.©