FMC expands into Russia

FMC Technologies’ (FMC) subsea division is located and operating in all of the world’s offshore hydrocarbons centres. From Houston and the North Sea to Brazil and Singapore, FMC is recognized as a leader in technically advanced and trusted subsea systems.

But one of the most exciting markets today in the challenge to extract oil and gas is in Russia, particularly in the far north and arctic regions. For this reason, FMC is further expanding its resources and capabilities in Russia to meet this growing demand.

Though the opportunities today mean that FMC now has a significant presence, the company has actually been operating in Russia since the end of the 1930s, delivering food machinery for canning factories. And during World War II, equipment to the Soviet Army was delivered under a US ‘land lease’ programme.

“Through its feasibility studies and its infrastructure developments FMC is building an operation that positions it strongly when it comes to working with oil and gas companies and service partners in Russia”
-Arild Selvig, FMC Technologies

Between the late 1970s  and mid-1980s, over 500 wellheads and x-mas trees (XTs) were delivered to the Orenburg and Western Siberia gas fields and around 100 marine loading arms for crude oil export terminals on the Black and Baltic Sea coasts. FMC's accredited office officially opened in 1979. FMC also became one of the major suppliers of agricultural and industrial chemicals to the Soviet market. FMC ground support equipment was supplied to major local airports.

Russian alliance

The first real impetus for FMC in Russia occurred when the division began relationship with Gazprom's affiliates in 2003 whereby all parties could discuss the options for the utilisation of subsea systems in arctic environments.  FMC also established a joint working group for the development of subsea technologies in ice-infected shallow waters. This was formalised by signing the alliance agreement between Gazflot, VNIIGAZ Giprospetgaz and FMC in September 2006.

Under this agreement the alliance plans to advance solutions for the development of offshore fields in Arctic regions, including the development of tailored field developments, technology and equipment for Arctic subsea projects; training of Gazprom personnel in subsea technologyand preparation of suppliers for local content.

One of the most eagerly anticipated projects in Russia is the development of Shtokman, one of the world's largest natural gas fields, located in the Barents Sea. Although at a very early stage, FMC has already undertaken analysis work including field layout, pipeline flow analysis, Subsea compression concept definition, numerous field layout studies, costing and schedule analysis. In 2007 a wellhead  for exploration well #7 was delivered

FMC's vast subsea experience has also led to its involvement in is the development of a subsoil caisson concept for Ob-Tas Bay area with shallow water drilling through ice sheets. The caisson will protect all subsea equipment from all ice impact.

The development of these arctic projects has particularly benefited from the long history FMC has of running projects in deepwater and harsh offshore environments.  Ormen Lange is just one such standout project, to date the most challenging subsea-to-shore subsea project in Norway to date. The huge Ormen Lange gas field is situated 120 km (75 miles) off the west coast of Norway and at a water depth of 850-1000 m. The gas is transported directly from the wells to shore, i.e. no offshore facilities is located at the field.

Through its involvement in these projects and feasibility studies, FMC is starting to develop what it calls its Subsea Arctic Toolbox.  This comprises of building blocks necessary to safely undertake subsea operations in these harsh conditions, such as methods to protect subsea equipment from icebergs and sea ice.

FMC recognizes the importance of undertaking all these activities in conjunction with its Russian alliance partners.  The arctic is a supremely difficult operating environment and the environmental challenges will only be overcome through a cooperative relationship using the best that each partner has to offer.

Training and development

In addition to its involvement in a number of offshore projects, FMC recognises the need and benefit in both developing skills transfer programmes and in having in-country infrastructure and resources.

One example of this is the FMC-Polytechnic Educational and Technological Centre, established in conjunction with the century old St. Petersburg State University in 2007.  Under the initiative, FMC has developed a 18-month post-masters training programme in sub-sea technology for 20 master students each year. The program comprises of 6 months class studies at FMC on-campus training centre in St. Petersburg followed by 12 months on-the-job training at FMC facilities in Norway.

Engineering centre

September 2009, FMC opened a subsea engineering office in St. Petersburg. The plan is to have within two years between 20 and 30 engineers that will be able to offer skills locally to customers and partners.  The employees will have been educated through the FMC Polytechnic Centre educational programme.

The main objective for the centre is to build up a separate engineering groups which can handle different kind of work to support the arctic subsea delivered to Russian customers. The centre will also follow up local content partners in Russia as part of the project executions.

Conclusion

Through its long-term commitment to the Russian market, FMC is now building an subsea presence that positions itself strongly when it comes to working with Russian oil and gas companies and service partners.  The company's track record world wide proves that it is able to meet the most demanding challenges of the subsea industry. FMC hence demonstrates its long-term view on the Russian subsea market.