SCOTTISH AGENCY OUTLINES U.S.S.R.'S EQUIPMENT NEEDS

May 14, 1990
The Soviet Union will need a wide range of imported equipment to meet crude oil and natural gas production goals to 2000. The Scottish Development Agency (SDA), Aberdeen, says Moscow's shopping list will include equipment for modernization, inspection, and repair of pipelines, meters and measuring equipment, services for the offshore industry, and equipment and services to maintain production in western Siberia, its No. 1 producing area.

The Soviet Union will need a wide range of imported equipment to meet crude oil and natural gas production goals to 2000.

The Scottish Development Agency (SDA), Aberdeen, says Moscow's shopping list will include equipment for modernization, inspection, and repair of pipelines, meters and measuring equipment, services for the offshore industry, and equipment and services to maintain production in western Siberia, its No. 1 producing area.

The Soviets will need equipment to improve environmental and safety performance, as well as for production in high pressure, high temperature, and corrosive environments and equipment to cope with severe weather that's encountered in frontier areas.

SDA said in hard currency terms, many of the skills and products that have been developed by western companies for use in the North Sea and frontier regions are relatively low cost and will provide the Soviet Union with a fast payback.

Romania is the Soviet Union's biggest oil field equipment supplier, delivering goods valued at 426 million rubles in 1988. In 1987 it provided 50% of all drilling equipment imported by the U.S.S.R.

PRODUCTION, DRILLING

The Soviets aim to prevent liquids production from falling to less than 10 million b/d in the second half of the 1990s and to boost gas production to about 105 bcfd by the turn of the century.

"Perestroika and developments in eastern Europe place even greater emphasis on production," the Aberdeen agency said.

It estimated achievement of planned production will require that 10% of all Soviet Union spending to go to the crude oil and natural gas industry to 2000.

As a result, drilling activity will increase significantly during the next three 5 year periods.

The Soviets assume their current fleet of drilling rigs is operating at capacity. So increased drilling rates can be achieved only by technological innovation.

Areas in which improved technology and equipment are required include drill bits, automation, mud engineering, and mud pumps.

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