OFS Technologies, the company created after buying out the assets of Baker Hughes in Russia in 2022, is currently working to boost its inventory of wells to lay the foundations for Russia to increase its oil production when needed, the firm's chief executive officer David Gadzhimirzaev told Russian news agency Interfax in an interview on Tuesday.
Russia is actively working to raise the number of oil wells to be ready to boost production when the time and conditions are right, the executive told Interfax on the sidelines of an energy forum in Russia.
Gadzhimirzaev leads OFS Technologies, which was created in 2022. Back then, one of the world's top oilfield services provider, Baker Hughes, announced its withdrawal from Russia in the wake of Vladimir Putin's invasion of Ukraine, as did many other energy companies.
Baker Hughes signed in August 2022 an agreement to sell its Oilfield Services business in Russia to its local management team. The agreement follows on Baker Hughes's previously announced suspension of new investments for its Russia operations and commitment to comply with applicable laws and sanctions. Back then, Baker Hughes says that the new business will operate independently of Baker Hughes - including an independent brand - and it will assume all current OFS Russia assets, liabilities, and commercial obligations.
Two years later, OFS Technologies is estimated to hold 10% of the Russian oilfield services market, according to Interfax.
Asked about the impact of the ongoing OPEC+ cuts, to which Russia is a part, Gadzhimirzaev told Interfax that the company doesn't see any effect on the drilling business.
Lowering crude oil production doesn't necessarily mean declining drilling activity, because companies continue to explore for new oil and gas reserves, the executive said.
"We are increasing the inventory of wells so that the country is ready to increase production at the right time," Gadzhimirzaev told Interfax.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More