OREANDA-NEWS  On 17 September was announced, that Integra Group of Companies wants to increase its presence in the CIS market from 13% of the annual gross revenue to 25% by 2012. This strategy is based on the oil and gas recovery growth rate anticipated for the CIS, which is higher than the growth rate projected for Russia, which translates into a bigger number of drilling assignments in CIS constituent states. Besides, Russian oil companies are reconsidering their position in terms of the CIS: although several years ago these states were mainly considered as the sources of cheap hydrocarbons designated for their resale to Europe, today, vertically integrated oil companies consider these states as investees.

Penetration of Russian oil service businesses into CIS states seems expedient due to the well-known integrity of the national economy that dates back to the days of the USSR; even now it is capable of synergizing development of the oil and gas industry within the territory of the former USSR.

Finally, while the penetration of western service companies into the post-soviet markets is limited due to a number of subjective reasons, Chinese companies pursue their aggressive policy of expansion. Local elites, being afraid of excessive presence of Chinese companies in this sector, often decline proposals made by Chinese companies and choose Russian contractors.

In other words, the Russian oilfield service sector has a substantial potential in CIS markets; Integra has identified several lines of business development in this market, namely, drilling rigs upgrade and IPM programs. According to Valerii Bessel (VB), Vice President of Integra in charge of Sales, interviewed by Servisneftegas Magazine, implementation of the above programs may substantially improve efficiency of the oil and gas sector in CIS constituent states.