A north-east technology firm has entered into a pact expected to lead to the award of a multi-million pound deal for pipeline work in Russia’s Far East.
The memorandum of understanding (MoU) paves the way for Stats Group, of Kintore, to work more closely with its Russian partners and increase its involvement in Sakhalin-2, Russia’s first offshore gas project.
Stats inked the deal with Sakhalin-2 operator Sakhalin Energy Investment Company and Russian firm Intra Services Company at the Eastern Economic Forum in Vladivostok. The conference was attended by Russian President Vladimir Putin.
Sakhalin Energy is owed by Gazprom, Shell, Mitsui and Mitsubishi.
One of the world’s largest integrated oil and gas projects, Sakhalin-2 comprises three platforms off Sakhalin Island, an onshore processing facility, 185 miles of offshore pipelines and 995 miles of onshore pipelines.
It is also served by an oil export terminal and a liquefied natural gas plant.
Bosses at Stats said the agreement was a starting point for long-term cooperation, with a gradual increase in the Russian content and local production of Stats’ technology in Russia.
Stats chief executive Leigh Howarth said: “In recent years we have developed a mutually beneficial relationship with Sakhalin Energy and I am delighted this MoU formalises our partnership and lays the foundations for working more closely with Sakhalin Energy and Intra Services on key pipeline projects.
“Sakhalin-2, as a large and technically challenging project, provides an excellent opportunity for assisting our partners in increasing Russian content.”
Sakhalin Energy chief executive Roman Dashkov said: “Adoption of cutting-edge technologies that can guarantee safe and efficient operation of our production facilities is an important component of the comprehensive execution of the Sakhalin-2 project, which is unparalleled in its technical complexity among global oil and gas projects.
“Despite the current political and economic climate, we strive to ensure utmost reliability of our equipment and systems, as well as to promote an increase in the local content of services, including highly specialised ones, through expansion of cooperation with our key Russian and foreign partners.”