Thursday, November 13, 2014

Russian super shipyard offered to abandon plans to produce LNG – RBC

Russian super shipyard offered to abandon plans to produce LNG – RBC

Russia’s President Vladimir Putin during a working trip to Vladivostok

Photo: TASS

During a trip to the Far East, President Vladimir Putin held a meeting on the issue of ship-building complex on the basis of the factory “Star”. In his speech, the president said that Russian shipbuilders products must compete on price and quality with foreign counterparts.

The meeting was attended Deputy Prime Minister Dmitry Rogozin, Industry and Trade Minister Denis Manturov, head of “Rosneft” Igor Sechin and the president of the United Shipbuilding Corporation (USC) Alexey Rakhmanov. After the meeting, Denis Manturov told reporters “Kommersant” that the president criticized the situation around the project.

According to the minister, Putin expressed his dissatisfaction with the fact that the project has no final financial model and the generated portfolio orders. The president instructed “in the near future to decide on funding sources,” the minister added.

Manturov told that the final project can be very different from what was planned in the beginning. The Minister said that it is necessary to adjust the production program of the company. Only such a radical change in the project will save the commercial attractiveness of the project, the minister said, adding that no change investments pledged now, “meaning do not have the costs that will never be repaid.” Initially, the project was planned shipyard invest 111 billion rubles.

«Construction of LNG and heavy oil tankers – not the nomenclature, which should count our shipbuilders,” – he said. “Profit from the production of large-vessel is low even at high standard and unit shipments during construction it is generally not profitable,” – added Manturov. The minister believes that the shipyard will build drilling and reconnaissance platforms for offshore drilling, as well as support vessels. Shipbuilding for the needs of the Navy must also be preserved, said Manturov, because in this area, Russia “traditionally serious competence».

In this Manturov stressed that the proposed restructuring is not of the sanctions that limit the supply of oil and gas equipment in Russia.

The publication also refers to the opinion of the sources familiar with the situation around the “Stars”, which confirm that the Construction and LNG tankers, for which ” first pinned such high hopes, “now” is not the first place ».

As of today the portfolio of orders is not formed, said a source publication,” all hope is now on the shelf orders “Rosneft” which are formed from drilling platforms, supply vessels and so on. At the same time as the most reliable source is called a military order.

A source of publication, government funding of “Stars” is only 11.7 billion rubles. on the 2016-2018 years, with Manturov Minister acknowledged that this is not enough to complete the project.

The shipyard was founded in 2009. It was assumed that it would produce large displacement tankers, gas carriers, ice-class vessels, special vessels, drilling platforms. However, in 2012, the project came from a key partner – South Korean DSME. Completion shipyard engaged a consortium, which includes the United Shipbuilding Corporation (USC), «Rosneft”, “Gazprombank”, and later joined by “Gazprom” and Novatek. The Board of Directors of the consortium headed by Igor Sechin.

The first phase of the project should become operational in 2016 and reach full capacity is planned for 2018-2020 years.

Third, the toughest to date, the package of sanctions against Russia, the US and the EU have introduced in mid-September. They hit praktichski throughout the Russian oil sector. In the US list were “Gazprom”, “Rosneft”, LUKOIL, “Surgut”, “Gazprom Neft” and “Novatek”. American companies are prohibited from delivering the goods and technologies necessary for the development of oil fields in deep water and the Arctic shelf and in shale formations.

European sanctions affected the three companies of the oil and gas sector – “Rosneft”, “Gazprom oil” and “Transneft”. They are denied access to the European capital market, they can not obtain loans and placing debt securities with a maturity of over 30 days.

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