20 Apr 2022 12:41

Russia critically dependent on imported technology for refineries, offshore production - expert

MOSCOW. April 20 (Interfax) - The latest ban on the export of technology from abroad could seriously affect the operations of refineries, as well as offshore production, Konstantin Radinsky, president of the Oil and Gas Equipment Manufacturers' Association (OGEMA), said during a meeting of the State Duma committee on energy.

"I would identify the two most important areas of problems in the fuel and energy complex as first being processing, because, indeed, we practically do not have import substitutions. If you go and see any refinery, you will understand what I mean, as every valve, every pump is practically 90% foreign. However, the most important problem is that it is controlled by foreign 'brains', as there are Japanese, German, and French technologies," Radinsky said.

"The second problem is our shelf, especially with regard to the existing production. This is very critical. We have wells that are operating today, but how to maintain them is a big question. There are large environmental risks with which we will have to deal, somehow how to interact," Radinsky said.

Radinsky added that there are no problems with the production of components for the oil and gas industry in Russia, as enterprises are able to produce up to 80% of the necessary equipment. Meantime, Radinsky noted that there is a shortage in the domestic technology market in processing and producing.

"We have had and will have production, and exploration has been and will be. There are no critical elements. However, if several refineries fail owing to the fact that some microchip, microelement or board is out of order, or a foreign specialist did not come and did not service on time, then the problem will already appear here that we will have nothing to sell, despite the fact that we have everything," the expert said.

As previously reported, the European Union in the latest package of sanctions limited the supply of equipment for oil refining and natural gas liquefaction to Russia, and also expanded the list of technologies for the oil and gas industry that are subject to a ban on imports to Russia.

Following a meeting on the situation in the oil and gas sector last week, President Vladimir Putin instructed to form a package of orders for the creation of technological products for the oil and gas industry that needs import substitution.