OAO Stroytransgaz and Key Energy Services Inc. conducted negotiations on the results of The Second Russian – American Business Energy Summit in the course of which the parties signed Memorandum of Understanding.
Thursday, September 25, 2003
OAO Stroytransgaz and Key Energy Services Inc. conducted negotiations on the results of The Second Russian – American Business Energy Summit in the course of which the parties signed Memorandum of Understanding.
The negotiations resulted in determining the schedule of further activities to be performed by each of the companies to implement the arrangements under the Memorandum.
The Memorandum was signed in Saint-Petersburg by the General Director and the Chairman of Key Energy Francis D. John and by the First Vice-President of OAO Stroytransgaz and the General Director of ZAO Stroytransgaz-Oil Victor I. Ott.
Following the Memorandum signing of servicing contract is envisaged. Under the servicing contract OAO Stroytransgaz will provide Key Energy with experienced personnel to operate well service rigs in the Rocky Mountain region while Key will train the Stroytransgaz employees on U.S.-style well servicing operations, with particular focus on safety, equipment management and Key's proprietary technology.
This is the first project of the kind, as no oil and gas specialists from Russia have been invited to the USA before. The goal of the two companies, each leading in its field, is to exchange knowledge and experience in the technology of oil and gas production increase when operating in severe Northern conditions.
Key Energy Services, Inc. is the world's largest rig-based, onshore well service company that provides diversified energy operations and oil and gas field services. The Company has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Argentina, Egypt and Canada.
The Rocky Mountains area, where the work of Russian specialists is planned, is situated in the State of Wyoming. This is one of the most promising gas production regions in the USA. At certain number of government-level approvals will be required for the successful project implementation, which will include US Emigration Authorities, obtaining appropriate working licenses, etc. Therefore support from the governmental administrations and creation of most favored regime will be required in the bounds of the Russian – American energy dialogue. “The project also gives Key Energy broad opportunities in Russia. Our cooperation with the Russian company Stroytransgaz will contribute to the overall Russian – American energy dialogue promotion. This dialogue was initiated by President Bush and President Putin in may 2002 in Moscow,” – Key Energy President Francis D. John said at the ceremony of Memorandum signing.
The OAO Stroytransgaz First Vice President Victor Ott believes that the Memorandum signing reflects the present high level of trust and partnership between the Russian and the US companies.
OAO Stroytransgaz and Key Energy are planning to develop the contract details and sign the document by the end of 2003.
