The general director of the Small Oil Company of Tatarstan, Timur Shaimiev, took the initiative to create an Association of Small Oil Companies under the Government of the Russian Federation. This will help small players receive government support, introduce technologies and solve industry problems. He also proposed reactivating 26 thousand old wells to increase production.
In Russia there is still no single organization that could effectively coordinate the activities of small oil companies. Existing associations, such as AssoNeft, include only 3-4 participants and are not capable of representing the interests of the entire sector. The Oil Consortium has been operating in Tatarstan since the 90s, but, according to Shaimiev, its activities are limited to sending out invitations to events and collecting charitable contributions.
The creation of an association under the patronage of the government will unite small companies, provide them with equal representation and access to government support. Particularly important will be the exchange of experience in the field of new production technologies, which is critical for small players.
Technological lag is one of the key problems of small oil companies. Unlike large corporations, they do not have their own refineries, and profits are generated only through the extraction and sale of raw materials. At the same time, many of them develop 2-3 fields, where production is often unprofitable. The introduction of innovations will reduce costs and increase profitability.
Another task of the association is to clarify the tax status of small companies. Now they operate in the same mode as the major players, despite the difference in scale and economic conditions. The new structure will help the state study their needs in more detail and develop support measures.
Shaimiev’s initiative is aimed at consolidating small oil companies and solving their key problems. The creation of an association under the government could be an important step for the development of the industry and increasing the efficiency of production.
Source: neftegaz.ru
