RUSSIA TO IMPORT MORE GOODS FOR UPSTREAM PROJECTS

Oct. 12, 1992
Russia is stepping up its imports of petroleum hardware. In the latest developments: Nippon Steel Corp. and C. Itoh & Co. Ltd., Tokyo, signed contracts to provide Russia $300 million worth of export credits for steel pipe and undisclosed drilling equipment. Nizhnevartovskneftegaz, a Russian oil and gas production association, asked the European Bank for Reconstruction and Development for a $60 million loan to buy western oil and gas equipment. The hardware, mostly pipe, tools, pumps, and

Russia is stepping up its imports of petroleum hardware.

In the latest developments:

  • Nippon Steel Corp. and C. Itoh & Co. Ltd., Tokyo, signed contracts to provide Russia $300 million worth of export credits for steel pipe and undisclosed drilling equipment.

  • Nizhnevartovskneftegaz, a Russian oil and gas production association, asked the European Bank for Reconstruction and Development for a $60 million loan to buy western oil and gas equipment. The hardware, mostly pipe, tools, pumps, and workover rigs, will be used in part to return shut-in wells to production.

Nippon and C. Itoh represented three other Japanese steelmakers and eight other trading companies in the deal signed with Russia's Gazcomplektimpex and state gas concern Gazprom. Gazcomplektimpex is identified as the state's "production commercial enterprise."

Of the credits, $200 million is for 200,000 tons of large diameter pipe and 150,000 tons of seamless pipe for natural gas pipelines. The rest is for drilling equipment.

Japan's Ministry of International Trade and Industry will insure the contracts, and the Japanese companies will accept deferred payments of $700 million. Separate negotiations are scheduled on the remaining $400 million.

Pipe and drilling equipment are to be delivered to Russia in 1993.

The trading firms will buy the pipe and drilling equipment with loans from the Export-Import Bank of Japan, and Russian authorities will make 5 year deferred payments from gas sales.

The contract allows steel pipe exports to Russia, suspended for 1 year, to resume.

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