6. Consideration of Russian specifics

May 20th, 2010

A small Western company purchased a gas field in Russia, planning to launch gas production, but faced a lot of problems.

It happened so, that production could not be started until the Russian technological requirements were met. It was not possible to be connected to the nearest gas pipeline, because no one knew its owner at the least. Besides, there was no understanding about the real gas requirements of the consumers at the other end of the pipe.

The situation was complicated by the conflict with the existing gas market players. The Russian regulatory base was not given adequate attention, and the company had no contacts with the local authorities. The company faced possible revocation of the license.

ERTA Group specialists performed the audit of documents, identified key problems, investigated the local market, key players and their interests.

As a result, a compromise decision was found which satisfied all parties involved in the conflict. Russian technological requirements were met, the field was launched into commercial operation, and it is functioning successfully.