Text 4.Tyumen Leverages Oil and Gas Riches to Strengthen the Economy

Tyumen region – “It’s not just about oil and gas”. So says the literature that the regional Department for Investments Policy and State Support of Entrepreneurship hands out to investors in English and Russian languages.

But it is Tyumen’s proximity to Russia’s oil and gas production areas- the Khanty-Mansiisk autonomous okrug and Yamal Nenets – mineral raw materials and logistic support such a highway and rail (the Trans-Siberian as well as the only rail line through Yamal Nenets Khanty-Mansiisk) that make Tyumen an ideal location for heavy and light industry to service West Siberia’s oil patch. Logistically, Tyumen even suits export to Kazakhstan and beyond.

But Tyumen is not just a manufacturing cluster, but a center for higher education. It aims –with the help of high technology companies that are locating there – to develop as a center for research and development and new business innovation. The Tyumen Oil and gas University, for example, graduates more oil field engineers than the famous Gubkin University in Moscow.

All Russia’s big oil companies have offices in Tyumen: TNK-BP, LUKOIL, Rosneft, Gasprom, and state–owned oil pipeline operator Transneft; also Austrian producer OMV. These companies draw attention of the international service and supply companies – Schlumberger, Halliburton, Baker Hughes, German drilling contractor KCA Deutag, and the equipment makers that supply these companies.

Here are some examples what is going on today in the heart of Wet Siberia. Some projects are nearing completion, some are in earlier stages of development:

· Schlumberger has invested more than 100 million euros to build facilities that will serve the West and East Siberia and Kazakhstan. Manufacturing is focused on electric submersible pumps (ESPs); perforating equipment, and a variety other equipment for enhanced recovery operations.(повышение нефтеотдачи). The most recent Schlumberger development is the completion of a Siberian Training Center.

· German rig maker and engineering company Bentec is investing 17 million euros in a manufacturing plant located at the same industrial park as Schlumberger’s ESP facilities a 30 minutes drive from Tyumen centre.

· TNK-BP is investing 2 million euros in developing the green-field (с нулевого цикла) Yvat oil field in Southern Tyumen Region, a project that will generate jobs for nearly 800 people.

· Tobolsk Polymere is a 2 billion euro project to develop 550,000 tons annually of polyethylene production at the Tobolsk Petrochemical plant

· Integra, the drill rig manufacturing unit of Russia’s Uralmash, is spending 500 million rubles to modernize and further develop its Tyumen facilities for the manufacture of mobile drill rigs in the 125 to 260 ton category. Integra currently supplies these rigs to Rosneft, Burgas and Belarusneft,

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