06  October 2017 


Downstream projects in Russia: how to achieve seamless project execution and capital efficiency


To maintain position within the market, Russian oil and gas majors like Lukoil, Gazprom Neft, Sibur and Rosneft have to implement new revamp projects despite a low oil price environment. At the same time, without significantly reducing cost and enhancing project performance, these projects will not be able secure financing.


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. 


On 2nd and 3rd November, Directors of Capital Projects Departments, Chief Engineers, Facility Leaders and Capital Project Managers from Russia, CIS countries and Eastern Europe will traditionally come to Vienna for 4th CEE & CIS Downstream Project Management Conference. 


Igor Nasirov, Business Development Director of Portfolio Management and Strategy Downstream at Thyssen Krupp Industrial Solutions commented “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.


According to EY’s report, ‘Oil and gas mega project 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”.


Downstream Project Management Conference is the region’s only event for projects owners, major refineries and petchem plants, EPC contractors, engineering companies and technology licensors who are interested in improving performance of capital projects in the CIS & CEE downstream sector. The event is officially supported by MOL and Slovnaft and includes a technical visit to Bratislava refinery.