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Russian Oilfield Services Market 2007: Analysis and Outlook

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Russian Oilfield Services Market: Analysis and Outlook

Release: November 2007
Languages: Russian, English
Price: 13500 EURO

2006 was a great year for the oilfield service (OFS) companies working on the Russian market. While in 2005 drilling volumes showed a healthy 9 percent year-on-year increase, in 2006 the dynamics continued with accelerating speed finally setting a smashing record of 25 percent year-on-year growth.

Upstream operators in Russia have been enjoying healthy revenues due to hovering oil prices. However, they find themselves confronted with the challenge of ensuring sustainable production growth under increasingly acute under-supply of drilling and oilfield service capacities. This shortage has been a major contributor to the escalation of prices for oilfield services, as well as the reason behind the recent string of declines on the part of OFS contractors to provide capacity to operators - an occurrence unheard of in previous years. For the first time in post-Soviet history, the OFS sector finds itself in a condition that allows it to pour investment into expansion and modernization programs.

Performance shown by the market leaders in the past several years has been exceptional. Between 1999 and 2006 Schlumberger grew its Russian operations from $50 million to an estimated $1.25 billion, an average of 50 percent increase annually. For the period of 2002-2006, Eurasia Drilling Company (former LUKOIL Drilling) had revenues grow organically from $177 million to $988 million (an average annual growth of 53 percent) and net income from $1 million to $95 million. Between 2003 and 2006 Austria-registered C.A.T. oil AG grew in operations from 80 million Euro to 194 million Euro, showing a 25 percent average annual growth. The market witnessed a number of success stories involving newly organized ventures growing to annual turnovers of $100 million after only several years of operations.

The publish of the report projects that the Russian OFS market will grow to $35 billion by 2015. However, different segments of the market will be each in its own way influenced by oil industry fundamentals, as well as structural developments, and will thus have their own individual growth patterns. Taken as examples, conventional drilling, hi-tech services and fracturing will differ significantly in their growth potential, performance and attractiveness for institutional and strategic investors.

The second edition of Russian Oilfield Services Market: Analysis and Outlook is probably the most comprehensive publicly available examination of this exciting and challenging market. The study analyzes the key factors shaping the OFS scene, and goes further into detailed research of particular market segments, regions and key players. Russian Oilfield Services Market 2007: Analysis and Outlook contains growth forecasts to 2015 for the main market segments, developed based on extensive in-house research experience in this field. The study is based on 2006 year-end data, with data for the first half of 2007 used when available.

Highlights of the study:

Russian Oilfield Services Market 2007: Analysis and Outlook Volume I.

CONTENTS

LIST OF FIGURES AND TABLES

Russian Oilfield Services Market 2007: Analysis and Outlook Volume II.

CONTENTS

LIST OF FIGURES AND TABLES

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