2023: Oilfield Services Companies Receive Record Annual Revenue in Russia
Oilfield services companies received Russia a record annual revenue of 1.79 trillion in 2022. rubles This is stated in a study by Kasatkin Consulting (ex-team Deloitte in Russia), which was published in early June 2023.
According to experts, in 2022, companies in all segments of the oilfield service market were able to receive the maximum earnings. For example, the drilling market in 2022 grew by 15.6% to 609 billion rubles. Drilling operations increased by 8.4% to 28.4 million meters, while the number of new wells increased by 6.8% to 7866.
It is also reported that the revenue of the fracking market increased in 2022 by 13.9% to 90 billion rubles. The volume of the geological exploration market in Russia in 2022 also increased by 13.7% to 249 billion rubles.
The publication recalls that against the background of sanctions against Russia due to a special military operation in Ukraine, international services - Baker Hughes, SLB (Schlumberger), Weatherford and Halliburton - announced a shutdown in Russia. Baker Hughes and Halliburton sold their Russian business to local management. As a result, the structure of the oilfield service market in Russia has changed: the share of international companies decreased from 15% to 9%, and the share of vertically integrated oil companies increased by 2 pp to 33.8%.
According to the forecasts of researchers, in 2023 the earnings of the oilfield service in Russia will be compressed by 6.1% compared to 2022 - up to 1.68 trillion rubles. The impact will be a voluntary reduction in oil production in Russia.
As noted in the Ministry of Energy, oilfield services companies in Russia provide an extensive list of services. The volume of orders for such services primarily depends on the fulfillment by oil and gas companies (customers) of their production and investment programs. The ministry added that large oilfield service companies were added to the list of backbone organizations of the Russian economy in terms of the fuel and energy complex.[1]
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