OREANDA-NEWS. June 16, 2010. The Ninth Annual Sovcomflot Business Partners Meeting took place in Moscow.

The conference was attended by: the Sovcomflot BOD members; representatives from Russia’s ministries and agencies; major Russian and foreign oil and gas companies; banks, investment, insurance, shipping and shipbuilding companies; analytical centres and organisations.

In his welcome speech, addressed to the participants and guests, the Sovcomflot Chairman Sergey Naryshkin noted that Sovcomflot Group’s Strategy of Development for 2010-2015, drafted in line with the provisions of the transport and energy strategies of Russia and approved by the Board of Directors last December, envisages further progressive development of the country on the basis of an industrial business model. “The Board of Directors considers that Sovcomflot has the potential for sustained expansion, for fulfilling the tasks set by the Development Strategy for 2010-2015, for strengthening its leading positions in the industry in terms of both volume and quality of services and by its system of corporate governance, which is specifically important given the company’s plans to enter the capital markets and to attract private investment”, said Sergey Naryshkin.

In her video-address, Russia’s Minister of Economic Development Elvira Nabiullina said: “The Government of the Russian Federation, in its plans for the privatisation of State property in 2010-2011, envisages the possibility of reducing its share in the company’s capital and inviting private business to invest in its securities. We believe that the industrial business model of Sovcomflot, focused on the long-term development, will be attractive to private capital”.

The speakers at the conference were: Sergey Kudryashov, Deputy Minister of Energy of the Russian Federation; Walid Chammah, Chairman and CEO of Morgan Stanley International; senior managers from major Russian and international oil and gas companies – Peter O’Brien, Vice-President of Rosneft; Jack Buono, General Manager of ExxonMobil Global Marine Transportation; James Taylor, President of Exxon Neftegas Ltd.; Tim Lambert, Vice-President – Energy Consulting of WoodMackenzie; Jeffrey Goetz, Head of Tanker Department, Poten & Partners, Inc.; Henrik Madsen, CEO of Det Norske Veritas (DNV).

The outlook for the development of the world energy market and Russia’s energy sector, the current situation and perspectives in the global tanker market, the development of specific Rosneft and ExxonMobil projects, including those with SCF Group participation, were the key issues in the speeches and participants’ discussions. During the plenary session and further round table discussions, attention was paid to the development of innovative technologies for commercial shipping.

Presenting SCF Group’s results for 2009 to the participants of the conference, Sergey Frank, Sovcomflot President and CEO said that in the difficult market conditions, the company maintained financial stability, demonstrated high levels of operational profitability, fully implemented its investment programme by taking delivery of 17 new technologically advanced vessels of an aggregate one million tonnes dwt. The company fulfilled the tasks set by the Shareholders of entering new market segments, which are of strategic importance for the future development of Russia’s energy sector and maritime transport.

The Group’s development strategy forsees a doubling of its main financial and operational figures by the end of 2015, that the volume of transportation will grow further, and that competitiveness will increase on the basis of using advanced energy saving technologies.

“We are facing the task of setting up a national integrated oil and gas offshore upstream services provider, on the basis of Sovcomflot, with a specific focus on operating in harsh environments and ice conditions. More than 30 per cent of the USD 5.5 billion investment programme is to be allocated to offshore upstream services. A substantial part of this investment is destined for Russia, through expanding competitive cooperation with national shipbuilding companies”, said Sergey Frank.