Substitution of imported equipment, spare parts, and expendables by home analogues stands high on the Company’s program calling for lower cost and expenses. The ultimate target of the program is to substitute home analogues for 50% of imported equipment, spare parts, and expendables. With the Company annually spending as much as USD 250 mn – 300 mn to purchase equipment necessary to introduce advanced technologies, the import substitution program will save money – up to 30%, according to experts’ estimates.

Implementing the program, the Company gives top priority to the most capital intensive activities, such as horizontal drilling and side-tracking.

Last year, plants located both in Russia and near abroad manufactured by the Company’s order various equipment falling into 106 items of a nomenclature list, e.g. the Company purchased from Russian plants flexibles, shutoff valves, spare parts for hydraulic tongs and packers, spare parts and expendables for telemetric systems, etc. In addition to the delivery of prototype models of hardware for sideholes completion, Surgutneftegas is currently testing a rotary-based hoist access ramp and has acquired the analogue of an imported top drive. Carrying out the program, the Company cooperates on a permanent basis with 16 Russian plants, while the total number of Russian partners amounts to 22. In 2003, the program let the Company save around RUR 60 mn. The 2004 plan calls for placing orders to the amount of RUR 355.7 mn to manufacture spare parts and expendables falling into 528 items of a nomenclature list. The estimated cost effectiveness will exceed RUR 317.3 mn.

Press Service of OJSC “Surgutneftegas”