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THE ITALIAN OIL SERVICE INDUSTRY DEBUTS AT MIOGE
Attending the 2009 edition of the Russian Exhibition MIOGE will be a group of mainly small-to-medium sized companies from Italy that manufacture highly technical equipment (valves, tubes, precision instruments, control systems and production software) at among the most competitive of prices. The Italian business representatives at the event can be classified as privileged suppliers for trade contractors and would therefore make the perfect partners for Russia’s leading Oil&Gas companies.
Italy’s presence will be coordinated by ICE, the Italian Trade Commission, who has organized its first ever collective participation at the Moscow International Oil & Gas Exhibition 2009, due to take place between June 23rd – 26th 2009. This biennial fair is seen as the main trade sector event in Russia. Established in 1993, MIOGE has now made its name as one of the top ten international events in the field of petroleum equipment.
In 2007, the biennial fair brought together 900 exhibitors (55% Russian and 45% foreign, from 40 countries) and attracted more than 28 thousand visitors. These numbers are expected to be even greater this year, in spite of the global economic crisis. MIOGE is a chance to meet operators and specialists from all over the world that work in the sectors of extraction, transporting petrol and gas and petrol refinement, and all associated fields (drilling, offshore platforms and onshore technologies, storage and transport, pipelines, security systems, maintenance and repairs, electric and electronic equipment, software, measurement and automation technology, laboratory equipment and training opportunities).
In 2008, the Italian sector of petroleum plant and equipment manufacturers generated a turnover of just under a billion Euros (985 million Euros, according to the pre-balance data provided by ANIMA, the Federation of the Italian Associations of Mechanical and Engineering Industries), up 7.1% on 2007. Three quarters of the revenue is reaped overseas: export accounts for 76% of production. Italian manufacturers stock the main global markets: North America, North Africa, Eastern Europe and the Middle East.
It is estimated that in 2009 the billion Euro benchmark will be exceeded, with an end of year turnover of 1,050 million Euro turnover and exports valued at 800 million, based on the percentage of revenue. While the segment benefitted most last year from investment in drilling machinery, operators are this year expecting a growth in the infrastructures for natural gas. As reserves are gradually being depleted, more investment is being channelled into the research and development of new markets such as gas.
Russia is an extremely strategic market in this respect due to the vast amount of raw material available in the country: it is the leading producer of petroleum in the world, second only to Saudi Arabia, and has the largest global reserves of natural gas. The economy is heavily dependent on the extraction and export of these raw materials, which account for around two thirds of all Russian exports and 50% of the federal budget. Italy can pride itself on strong commercial relations with Russian operators in the field (Gazprom in particular), courtesy of ENI: the two petroleum giants have recently signed new cooperation agreements for joint ventures in Russia and other nations.