Localization and Development of Industrial Clusters
Import Substitution and Equipment Localization Program
In efforts to reduce dependence on imports and develop the industrial and engineering potential of Russia, Rosneft developed the Import Substitution and Equipment Localization Program in the Russian Federation for the medium- and long-term, effective since May 2015.
The Program aims at maximizing the share of products, works, and services procured on the Russian market through the development and localization of existing Russian production and maintenance services supporting high-potential projects and the Company’s current operations.
Scheduled to continue through to 2025, the program includes the following key stages:
- Seeking existing Russian analogues of imported equipment and providing rationale for their use, thereby encouraging higher manufacturing standards and product quality, as well as promoting import substitution
- Establishment of partnerships and joint ventures with the world’s leading equipment manufacturers to produce equipment within the Russian Federation
- Gradual localization of foreign equipment manufacturing in Russia through established partnerships, from assembly to local production, to achieve a localization level of no less than 70% by 2025
Cooperation in Equipment Localization
In 2017, Rosneft concluded a number of important agreements with world-leading companies such as General Electric, Gaztransport & Technigaz, Hyundai Heavy Industries, Samsung Heavy Industries, DSEC, and Lamor regarding the localization of equipment and other products not currently produced in the Russian Federation.
COOPERATION WITH GENERAL ELECTRIC
Within the shipbuilding projects and construction under way at the Zvezda Shipyard, a steerable thrusters production plant was launched in Bolshoy Kamen.
At the 2017 St. Petersburg International Economic Forum, Rosneft and General Electric signed a research and development agreement regarding a new steerable thruster design for large-capacity vessels.
COOPERATION WITH GAZTRANSPORT & TECHNIGAZ (GTT)
In June 2017, a Memorandum of Understanding was signed on the design and construction of Cargo Containment Systems and LNG carriers in the Russian Federation. The Memorandum includes preparing the Zvezda Shipbuilding Complex for LNG carrier construction. An agreement was signed at the Eastern Economic Forum for technical evaluation of the shipbuilding complex’ capabilities for building membrane LNG containment systems necessary for the subsequent purchase of GTT’s license to build LNG carriers. The Zvezda Shipbuilding Complex has passed GTT’s initial audit.
COOPERATION WITH HYUNDAI HEAVY INDUSTRIES (HHI)
During the St. Petersburg International Economic Forum and the Eastern Economic Forum, Rosneft and Hyundai Heavy Industries signed several documents enabling the continued cooperation to build Aframax class oil tankers through the Zvezda–Hyundai joint venture, including technical support in designing, engineering, building, and technical documents development for building Aframax class vessels.
The cooperation will provide the Zvezda Shipbuilding Complex with documentation allowing the construction of a series of Aframax tankers for transporting oil between Baltic Sea ports. The vessel’s technical documentation is to be developed by the Lazurit Central Design Bureau under the HHI’s design supervision.
COOPERATION WITH SAMSUNG HEAVY INDUSTRIES (SHI)
In September 2017, Heads of Agreement were signed by the Zvezda Shipbuilding Complex and Samsung Heavy Industries at the Eastern Economic Forum, establishing a joint venture to manage shuttle tanker construction projects.
Cooperation with Samsung Heavy Industries enables shuttle tanker construction to be launched at the Zvezda Shipbuilding Complex, as well as procurement of a set of materials and shipboard equipment with the prospect of future localization.
COOPERATION WITH DSEC
Following the Memorandum of Understanding dated 2 September 2016 at the Eastern Economic Forum, a subsidiary of JSC FESRC, LLC Far Eastern Design Institute Vostokproektverf, and Korean DSEC Co., Ltd signed an agreement to establish a joint venture specializing in shipyard construction design, engineering, procurement, management, and supervision.
COOPERATION WITH LAMOR
At the Eastern Economic Forum, the Company signed an agreement with Lamor to establish a joint venture in manufacturing oil spill response equipment at the JSC 82 Ship Repair Plant. The required legal documentation for the joint venture is currently being prepared by Rosneft and its Finnish partners.
SAPPHIRE APPLIED ENGINEERING AND TRAINING CENTER
CONSTRUCTION OF A COASTAL SUPPORT BASE FOR OFFSHORE PROJECTS
Rosneft is continuing to build a supporting infrastructure for oil and gas projects on the Russian Arctic shelf at Ship Repair Plant 82 in the residential area of Roslyakovo in Murmansk.
Along with conserving and upgrading the plant’s ship repair facilities are plans to construct a coastal support base on the premises for offshore projects, as well as an oilfield service equipment production block, and an infrastructure to produce concrete gravity-based structures with a facility for assembling topsides for oil and gas platforms and LNG plants.
The project was driven by the need to reduce dependence on foreign manufacturers, cut production costs, and localize the production of high-tech components.