Presentation by Association Of Oil And Gas Suppliers SOZVEZDYE, Navigate fair in Turku, Finland 19.5.2016

1. Business Potential
in Russian
Arctic Oil and Gas
Projects
SERGEY SMIRNOV
Director
SOZVEZDYE Association of Oil and Gas Suppliers

2. Arctic as seen by the global community
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Russia claims leadership in Arctic oil and gas reserves
Development of a new transport route – the Northern Sea Route
Distance between Europe and Asia is 45% less than through the Suez Canal
41%
28%
18%
9%
4%
0% 10% 20% 30% 40% 50%
Russia
USA
Denmark
Canada
Norway
Oil reserves
70%
14%
8%
4%
4%
0% 20% 40% 60% 80%
Russia
USA
Denmark
Canada
Norway
Gas reserves

3. 3
Prirazlomnoe field in the Russian Arctic shelf
Transport and logistics – 16%
Built at the Sevmash shipyard in Severodvinsk, Arkhangelsk region
Set in the Pechora Sea in 2013; 55 km from the coast
First oil run – April 2014
Russia-made double-hull tankers perform all-year-round oil transportation
Transshipment through “Umba” storage tanker in the Kola Bay
Gazpromneft delivered 1.1 mln tons of ARCO oil to Europe

4. Мезень
“…Sanctions and low oil prices affect Arctic projects. Some
projects can be delayed for 1-2 years, but the rates should stay
the same. Our task is to keep projects going…”
Sergey Donskoy, Russian Minister of Natural Resources
UN Headquarters, February 9, 2016
Sanctions and low oil prices are not problems but possibilities
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“Despite the economic climate Russian companies keep
prospecting drilling in the Far East shelf. Rosneft is drilling two
wells in the Sea of Okhotsk in 2016…”
“Private companies like Lukoil and Zarubezhneft can get access
to offshore projects…”
Kirill Molodtsov, Russian Vice-Minister of Energy
“Arctic 2016" conference, Moscow, February 18, 2016

5. Short-term prospects of Arctic oil and gas projects
Gas-condensate fields in the transit area of the Yamal peninsula and offshore the Gulf of Ob
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Project 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Yamal LNG,
NOVATEK
Coast,
493 modules
Arctic LNG 2,
NOVATEK
Offshore,
3 platforms
Kamennomysskoe,
Gazprom
Offshore,1 platform,
3 satellite platforms
Severo-
Kamennomysskoe
Offshore,
1 platform
Semakovskoe,
Gazprom
Offshore,1 platform,
1 satellite platform
Licensed blocks
Offshore,
5 platforms
NOVATEK and Gazprom will construct 11 sea platforms and 4 satellite
platforms for Arctic fields in 2018-2030 as confirmed in their investment
plans

6. Yamal LNG production, liquefaction and export complex
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Yamal LNG

7. Arctic LNG 2 – next NOVATEK project on the Gydan peninsula
The changes in freight traf
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Yamal LNG Arctic LNG 2
Salmanovskoe (Utrennee) OGCF
LNG plant: 3 stages 5.5 mln tons each
Implementation:
• 1 stage – 2022
• 2 stage – 2024
• 3 stage – 2025

8. Kola yard – platform construction facility for Arctic LNG 2 project
8
Belokamenka
LNG 2
Time Stage
September 2015 – early 2016 Modules manufacturers preliminary assessment; preFEED stage
Late 2016 FEED stage
Mid 2017 Investment decision-making
2017 – 2018 Issue of tenders
July 2018 – June 2020 Production of modules and process equipment

9. Gas fields in the Gulf of Ob; Gazprom dobycha Yamburg
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Kamennomysskoe-more field
2015-2016 design stage
2017 – contractor selection, project start. Zvyozdochka – possible
contractor
2022-2030 – development of Severo-
Kamennomysskoe, Obskoe, Semakovskoe fields
Confirmed in Gazprom investment plan
Design engineer - Krasnoyarskgazprom neftegazproekt
Contractor – United Shipbulding Corporation

10. Arkhangelsk Transportation Hub: supplying for the Arctic projects
Arkhangelsk is a key participant in Arctic logistics. Production facilities of engineering and service companies
are developing in the region. For example, Mezhregiontruboprovodstroy JSC started production of large-scale
steelwork for Yamal LNG.
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11. New international cooperation possibilities in Russia
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Import substitution and localization principles used in Arctic project implementation today discover
new possibilities for international cooperation through new joint enterprises, groups of companies,
and representative offices in Russia
Trending economic spheres for cooperation:
- production of components for trawler, ice-breaking, and transportation fleet
- production of oil and gas, forestry, pulp, and mining equipment
- logistics in the High North, exploitation of the Northern Sea Route
“We will continue Arctic shelf exploration.
It is our strategic resource!”
Alexander Novak
RF Minister of Energy

12. Thank you for your attention!
SERGEY SMIRNOV
SOZVEZDYE Association of Oil and Gas Suppliers
Director
Tel: +7 (8182) 28 69 30
Fax: +7 (8182) 28 69 10
Mob.: +7 921 240 42 42
E-mail: sozvezdye@gmail.com
Website: www.sozvezdye.org
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