Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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July 2014 | Seamless Steel Tube & Pipe


Russian OCTG demand slows as Norway gives green light for Sverdrup field: Europe and CIS Analysis


Despite some political turbulence between the west and Russia we observe a growing involvement of International Oil Companies (IOC) in Russia’s oil and gas sector.

As with other regions in the world such as the Middle East, Russia has entered into the traditional low demand summer season in OCTG market. Russia sees a slow-down at this time of the year due to logistical difficulties of delivering casing and tubing to remote production sites. Prices for OCTG though remain unchanged this month with J/K 55 at 7” selling at around $1,595/tonne and seamless casing GOST 632-80, Grade D 36,400 rubles/t (net VAT 13%). Although in 2013 oil production in the country reached a post-soviet high of about 10.5 bpd there were certain concerns, partially still remaining, about the sustainability of high oil production levels attributed to aging oil fields and relatively low level of investments into new field exploration and development. But recent changes to Russia’s tax regime, which includes tax breaks for offshore and tight oil production are understood to have encouraged investment and support...

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