Russian Service Firms Remain Closely Tied to Producers

摘要

Russia's oil-field services sector has been kept pretty busy recently as producers have sought to prop up their volumes by squeezing more oil from existing fields. Activity also looks likely to remain fairly strong in the near term as the Russian majors prepare to start drilling at several big new blocks. Nevertheless, service firms say they have been struggling because pricing has not kept up with inflation. And many industry players bemoan a lack of competition, saying a big chunk of the country's services business goes to a handful of players that are related directly or indirectly to the majors.