Energy sector

March 24th, 2010

The Russian oil and gas sector is like a labyrinth. Its differs both from foreign energy sectors and other Russian economy sectors to a great extend: from marketing, licensing, taxation issues to complex political relations with monopolists, transport companies, other companies which provide crucial services (Gazprom JSC, Rosgasifikatsia JSC, SG-Trans JSC, and many others).

Foreign, as well as Russian companies willing to enter Russian energy market have to take enormous efforts to get even its basic playing rules. That is why ERTA Group believes that one of its main areas of activity is to give clients the understanding of the Russian energy sector.

Our services cover the whole process of project implementation: from idea generation to exiting.  By clicking the corresponding part of the diagram, you can learn more about specific projects carried out by the ERTA Group.

 

Idea:

At early stages of a project, we help to assess its prospects, basing on our knowledge of industries’, regions’ and infrastructure specifics. We offer as well optional solutions to problematic issues for existing projects.

Examples of projects: (1), (2)

Search of partners:

No project in Russian Fuel and Energy Complex can be realized without co-operation with the existing market players: producing, service, transportation companies or natural monopoly holders. Having good knowledge of Russian market, we help our clients to make necessary contacts.

Examples of projects: (3), (6)

Reserves audit:

We often help companies, which do not consider resource development as their core business. At the initial stage of a project we can undertake quick feasibility study, which usually proves to be effective just with proper analysis of the information on field reserves and their potential increment.

Examples of projects: (4)

License:

License is a key document regulating interrelations with the state for a natural  resources development project . The license contains a list of specific conditions, and the failure to comply with them may lead to serious problems, up to license revocation and forced project closeout. We are experienced in analyzing licensing conditions and suggesting ways to mitigate regulatory risks.

Examples of projects: (4), (6)

Technology:

Most Russian natural resources’ development projects are completely unique. This has to do with geological, climatic conditions, existing infrastructure. We help choosing the technologies and suppliers which are optimal for this very project under its specific conditions.

Examples of projects: (1), (3)

Marketing:

Where to find consumers for your oil, gas and condensate? Sell in Russia or export? Short-term or long-term contracts? What are the risks implied by each of the solutions? We help finding the answers and building the project’s marketing strategy.

Examples of projects: (2), (3)

Transport:

Are investments in transportation infrastructure reasonable? How to tie in to a pipeline and to evaluate its throughput capacity and peak load? Our company has built a model of the Russian gas transportation system, which answers many of these questions. Transportation calculations represent one of our strengths.

Examples of projects: (4), (6)

Business plan:

We carry out economic evaluation of any business ideas developed by our clients, as well as our own, then we draw up a business-plan in accordance with the industry standards.

Examples of projects: (1), (3), (4)

Approvals:

Project’s ideas sometimes may conflict with interests of regulatory agencies: the Ministry of Energy (Minenergo), the Federal Tariffs Service (FTS), and market-dominating players: Gazprom, Rosneft. We help not only to pass formal approval procedures, but to work out effective political compromises.

Examples of projects: (6)

Project implementation:

Businessmen may face unexpected problems during any stage of a project implementation process. There may be conflicts with regulatory agencies, legal, technological or transportation difficulties, unexpected changes of contractors, and so on. Sometimes these are typical problems, which could have been foreseen in advance and eliminated at earlier stages in case an expert had assessed a project beforehand. Unlike one-area experts (lawyers, geologists, ecologists, drillers), we carry out express analysis of a wide set of issues and provide timely solutions.

Examples of projects: (5)

Risk management:

A project implementation process requires constantly keeping an eye on existing risks. Was the previous risk assessment adequate? Have new risks appeared? It is better to eliminate a potential threat than to wait until it grows to become a serious problem for a project. We have a wide experience in accompanying industrial projects and deep understanding of the risks specific to all stages of a project implementation process.

Examples of projects: (2), (5)

Project management:

In addition to new risks, project manager often faces a very common obstacle: he/she lacks additional resources. We are ready to render assistance in data collection and analysis and decision-making at every level of a project management process.

Examples of projects: (5)

Project selling:

There are certain situations when to sell a project turns out to be more profitable than to implement using one’s own resources. If it is true, we help to organize the asset-selling process, including determination of the list of potential buyers, preliminary market price evaluation, and elaboration of the investment memorandum.

Examples of projects: (5)