Another week, another massive energy project is launched in Russia - sanctions aren't slowing things down at all.
An interesting video because it shows the scale of the massive industrial projects Russia is rolling out on a regular basis.
Full transcript follows below.
Three weeks ago we reported on the opening of a massive copper mining complex, jointly operated by China and Russia.
The excellent F. William Engdahl has a great recent article about all this activity here.
The prime minister, Mr. Medvedev was on-hand for the opening, as was Russia's biggest oil boss, Mr. Sechin.
A new oil well has started operating in Khanty-Mansiysk. It is a groundbreaking project for this region. Over 5,000 new jobs will be created. Almost 9 million tons of hydrocarbons will be extracted here annually. Russian extraction technology will be used.
Here is the high-tech drilling rig made in Russia, the drilling is taking place right now. The depth of the oil well is 4,100 meters, hard to imagine. Deep down the well takes a 90 degree curve and goes down another kilometer. It's called horizontal drilling, which seemed impossible before. Today, the technology of oil extraction has reached a new level.
Medvedev, Prime Minister:
Igor Sechin, head of Rosneft:
"Please start the commercial oil shipment."
"The oil of the Erginskiy cluster has entered the Transneft pipeline."
This is the first step in creating an oil and gas hub, where high technology, intellectual systems, and global resources will meet. The overall supply capacity is 260 million tons. The first oil portion, here in this tube, has already been extracted from the Erginskiy cluster.
Hundreds of meters from the surface of the oil-bearing land. The helicopter begins to descend. The Irtysh river is below. The oil workers delivered the equipment by barges, by air, across the taiga. The equipment is unique and produced in Russia.
"The technology used in the cluster allows us use up to 95% of associated petroleum gas. It shows that the innovative potential of our oil and gas industry is growing every day."
The numbers speak for themselves: 10 movable rigs will drill almost 2,500 wells in this oil-rich land. Oil production will reach highest levels: 9 million tons annually.
"We are talking about a new method of developing deposits in traditional oil regions, which implies extracting reserves that are difficult to access, by using cutting-edge technology and the existing infrastructure."
Later at a meeting in Khanty-Mansiysk, ways of boosting oil industry output were discussed.
"Another stimulating mechanism is the tax on added revenue from hydrocarbon production. It takes into account the project economy throughout all the investment stages. The level of tax will depend on the profitability of each oil well."
A new oil and gas province has appeared on the mineral resources map, i.e. the Erginskoye oil field with Kondinskiy deposits, connected by the infrastructure of the already profitably-running Priobskiy deposit. This will ensure oil supplies for decades to come.
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