Downstream projects in Russia: how to achieve seamless project execution and capital efficiency
We can see that a lot has been done to improve capital efficiency in the Russian downstream sector in comparison to the poorly delivered projects in the 90s. However, even more sophisticated skills and advanced technologies are needed to manage the increasing scale and complexity of today’s capital projects to get the best returns from multibillion-dollar projects.
One of the recent success stories is Sibur's $9.5 billion ZapSibNeftekhim petrochemical project, which is several months ahead of schedule. Here’s an impressive video report on the project scope and progress: What are the keys for success in delivering downstream projects in Russia?
I collected several opinions from GBC’s speakers and industry friends on projecting market in Russia and success factors for driving capital efficiency with projects for the downstream sector:
Igor Nasirov, Business Development Director of Portfolio Management and Strategy Downstream at ThyssenKrupp Industrial Solutions suggests that “the Russian market has sufficient potential for further growth if state-of-the-art technologies are used and access is provided to cheap financing”. In his presentation delivered at the Downstream Tatarstan conference last week, he added: “New deep processing processes in Russian downstream are highly effective and have a short payback period.”
Oleg Kostin, General Director of JSC NIIK (Research & Design Institute of Urea and Organic Synthesis Products) lists the main success factors as follows: “First of all, it’s the demand. We can go on talking about process performance, but the bottom line is – a project is successful when it brings money. That’s why correct selection of a growth direction is of crucial importance to new enterprises.
I’d give the second place to energy efficiency, implementation of cost-saving solutions, and capital capacity of the production, since these things define cost efficiency of a project to a large extent.
Time is another factor that is of huge importance for successful implementation of a project. We are talking here not only about the direct impact time has on projects (schedule), but also about the right time for investments to start coming in.
On the one hand, a market for any product develops in cycles, and there is a considerable time lag between these cycles - sometimes it’s even longer than a new plant construction period. Which means that, to start producing when the market is on the rise, and to gain maximum profit, you have to start investing when the market is in decline – and that’s not an easy decision to make.
And, finally, people. Any facility is designed, built and managed by people.”
According to EY’s report, ‘Oil and gas megaproject development: project development to FID’, new technologies, such as 3-D printing, robotics and digitization, offer huge potential to drive improved performance. They state: “The oil and gas industry has significant potential to embrace visualization and other new technologies to improve project engineering accuracy”, and “The energy industry as a whole has fallen behind other industries in the adoption of data collection and the use of advanced analytics for decision-making”.
Directors of Capital Projects Departments, Chief Engineers, Facility Leaders and Capital Project Managers from project owner and contracting companies will be attending our 4th CEE & CIS Downstream Project Management Conference, on the 2nd -3rd November 2017 in Vienna, to exchange best practices in project management and capital efficiency. The event is officially supported by MOL and Slovnaft and includes a technical visit to Bratislava refinery.
If you have solutions or success stories to share with our clients, join us in Vienna for the insightful conference, interactive roundtables, a technical visit to Slovnaft refinery and the gala dinner.
Visit www.cisdownstream.com for more information.
PS Feel free to share your thoughts on improving capital efficiency in the refining & petrochemical projects in Russia in the comments to this article
GBC Ltd is an international company run by professionals with more than 20 years’ experience and a passion for organising highly successful international oil & gas events.
Our conferences provide a platform for companies looking to achieve successful corporate performance as well as expanding the scope of their expertise and establishing themselves in new markets. Our production team are experts in the upstream and downstream sectors who know the market inside out.
Office 301, 22 Highbury Grove, N5 2ER UK
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Downstream projects in Russia: how to achieve seamless project execution and capital efficiency here
News-ID: 720463 • Views: 393
More Releases from GBC
MOSCOW TO HOST THE WORLD’S LARGEST PETROCHEMICAL CONFERENCE DEDICATED TO THE C …
In 2018, Moscow is once again set to host the sixth international CIS Petrochemicals conference which will take place on 11 - 13 April in Four Seasons Hotel. Over the past six years, the conference has firmly established itself as the region’s largest and most high-level petrochemical event with over 350 international & regional top-level executives from around the globe attending the conference every year. The enhanced 2018 business programme,
CEE & CIS Downstream Project Management Conference,
Successful implementation of complex revamp and construction projects without budget overruns and schedule slippage is the dream of any refinery manager. VPs and Project Managers of companies such as LUKOIL, GAZPROM NEFT, MOL, SLOVNAFT, SOCAR and KAZMUNAYGAZ will take part in the 4th CEE & CIS Downstream Project Management Conference, 2- 3 November 2017 in Vienna, to exchange best practices in the project execution and capital efficiency. The conference includes • A technical
The leading regional event for oil and gas projects is back again in Romania, on …
The Black Sea Oil and Gas conference will bring together onshore, offshore and midstream project owners from Romania, Bulgaria, Georgia, Turkey, Russia and Ukraine to discuss the development of their projects, regulatory challenges, technological needs and business development plans for next years. The industry has seen positive changes in 2017: important offshore operators announced intention to invest massively in their fields, Black Sea Oil and Gas operator will present the final
Digital Transformation of the oil and gas sector
The oil and gas industry has always been seen as conservative and resistant to change but due to the recent drop in the oil prices, both the upstream and downstream companies are looking now at innovative ways to reduce CAPEX and increase production and safety to achieve operational excellence. The digital technologies and IIoT are seen as the main way to a varied range of key benefits. In a recent
More Releases for Russia
Packaged Water in Russia
ReportsWorldwide has announced the addition of a new report title Packaged Water in Russia to its growing collection of premium market research reports. Packaged Water in Russia industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2011-15, and forecast to 2020). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Synopsis: Essential resource
Medium & Heavy Trucks in Russia
ReportsWorldwide has announced the addition of a new report title Medium & Heavy Trucks in Russia to its growing collection of premium market research reports. Medium & Heavy Trucks in Russia industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2012-16, and forecast to 2021). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the
Energy Drinks in Russia
ReportsWorldwide has announced the addition of a new report title Energy Drinks in Russia to its growing collection of premium market research reports. Energy Drinks in Russia industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2011-15, and forecast to 2020). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Synopsis: Essential resource
Consumer Electronics in Russia
Summary After the collapse of retail volume sales of consumer electronics in 2015, the negative trend continued in 2016. Although prices of oil were partly restored, business investments and the real income of Russians continued to decline, making a fast recovery of Russia’s economy questionable. As a result, consumers in Russia became very cautious when making their purchasing decisions. Despite the strong overall decline in retail volume sales, the performances of
Consumer Health in Russia
Summary Russian consumers are becoming more restrained in terms of spending money on consumer health products. The trend towards economising has become more widespread due to an economic slowdown in Russia and the consequent decrease in consumers’ disposable incomes. Russians are showing a greater preference for cheaper remedies or refusing to purchase any in the case of mild ailments that can be cured by traditional medicines. This is particularly so for
Russia Hotels – Best Hotels Available in Russia
Are you tired of searching for best hotels in Russia through search engines, now there is no need to waste your valuable time digging search engines, because we proudly announce besthotelsrussia.com here you get all details about hotels available in Russia. Russia is the largest country in the world this place covers almost the whole of Asia and 40% of Europe. It also has huge population ranking in ninth position