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16-18 June 2020 • Moscow • Crocus Expo

Russian oil & gas localisation case study - Plexus & Gusar Oil & Gas

The UK's Plexus has teamed up with Russia's Gusar to produce undersea drilling and oilwell equipment to tackle Russian need for specialised sub-sea equipment.
Russian oil & gas localisation case study - Plexus & Gusar Oil & Gas
Import substitution, while also creating localisation opportunities, has uncovered sizable supply gaps in some vital areas. Production of subsea and marine machinery in both the USSR and modern Russian Federation was practically non-existent.

Plexus & Gussar team up for specialist equipment production

Import substitution, while also creating localiation opportunities, has uncovered sizable supply gaps in some vital areas. Production of subsea and marine machinery in both the USSR and modern Russian Federation was practically non-existent.
This is partly due to the costs associated with offshore production, i.e. moving machinery to project sites, installation, etc. However, Russian majors are desperate to push ahead with offshore and deep-sea projects. This trend is leading to a new oil & gas related industry in Russia – production of marine-specific E&P technology.
“As extracting hard-to-reach oil and gas goes deeper and becomes more complex, particularly in high pressure and high temperature environments, innovative, safe and effective wellhead technology is becoming increasingly important," Gusar said in a company statement.
Gusar, a Russian tech-supplier based 187km away from Moscow in the Vladimir region, is leading this industrial push – and localisation holds the keys to success.
In 2015, Gusar became a licensee for under-sea drilling column head tech developed by Scottish engineering firm Plexus. Plexus has a long history of developing drilling solutions for use in the North Sea, widely regarded as a difficult spot for offshore drilling.

Plexus equipment manufacturered in Russia

Under the licensing agreement, Gusar can utilise three of Plexus’ undersea and subsoil solutions:
• POS-GRIP® Exploration Adjustable Wellhead Equipment
• TERSUS™ Mudline and Casing Support Equipment
• M2S Mudline Conversion Equipment
Gusar is combining these options into a drilling solution designed specifically for undersea use. Lower column suspension constructed at Gusar’s facilities will be paired with Plexus’ tech to create an in-demand product currently not in local production.
In wellheads, POS-GRIP™ can replace the conventional load shoulder or slips to create a high-load hanger support mechanism which is adjustable, full-bore, fully elastic, and provides instant, high-capacity lockdown. It uses robust metal-to-metal seals to support rugged, flexible drilling options.
By combining with TERSUS™ mudline equipment, Gusar is to manufacture a solution localised specifically to Russian market conditions – and fill the supply spaces left by import substitution.
Currently, Gusar is operating off the following timeline:
• 2015 – Joint agreement signed
• 2016 – Alignment of technical details/specifications to Russian standards
• 2017 – Design/development of mudline prototype column head
• 2018 – Production of the prototype column head
• 2019 – Mass production of drilling solution
In the short term, Russian majors, including Gazprom, Gazprom Neft, Lukoil, and Rosneft, are looking offshore for extraction. E&P will mainly take place in Russia’s Arctic waters, namely the Sea of Okhotsk, Barents Sea, and the Kara Sea. Many such developments are planned to start between 2030-2035, including:
• 500 underwater wells
• 640 dry well completions
• 37 sub-sea wells in the Yuzhno-Kirinskoye Field
Such activity would require a steady stream of specialised technical solutions to be successful. Reacting to this incoming demand, Gusar has been able to position itself as a chief supplier of subsea technology to the Russian market – all made possible thanks to localisation of Plexus’ products.

Your guide to localisation in Russia

If Plexus' collaboration with Gusar has inspired you, and you’re thinking about moving production to Russia, then download our practical guide on how to get started. Inside, you’ll find plenty of practical information on how to begin manufacturing essential oil & gas equipment in Russia, as well as a look at the benefits Russian-based production can bring.

Localisation guide download

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