Rosneft to Develop Drilling Arm, Add Rigs to Counter Cost Gains

OAO Rosneft, Russia’s largest oil company, plans to develop its drilling arm RN-Burenie and buy more rigs to counter the rising cost of oilfield services.

“We will develop RN-Burenie, we will modernize it, we will buy new rigs,” Chief Executive Officer Igor Sechin said.

Oil companies including OAO Lukoil, OAO Bashneft, TNK-BP and OAO Gazprom Neft have been spinning off drilling units to focus on their main businesses. At the same time, demand for drilling services has been increasing because of the reduced pressure at wells for aging deposits in Siberia. Oilfield services are becoming concentrated and costly, Sechin said.

“We welcome work with companies with Russian registration, and foreign companies that are registered here,” Sechin said. “We will optimize this segment and will work, respecting our contractors, especially those that consider our interests.”

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE