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Localization as an effective import-replacement approach

UDK: 338.23:622.276
DOI: 10.24887/0028-2448-2018-2-6-10
Key words: oil and gas machine building, import-replacement, localization, perforation system
Authors: O.V. Zhdaneev (Schlumberger, RF, Tyumen)

The analysis of import-replacement practices for the oil and gas products manufacturing in Russian Federation is presented in the paper. The challenges to efficiently deploy the import-replacement policy in the country are identified and analyzed. Based on the retrospective analysis of import-replacement in Latin America, South-East Asia, and ongoing programs in China and India it is possible to make a conclusion about the importance of long term planning and focus on export to ensure success in import-replacement. The importance to establish product development capabilities and competency development programs for Russian professionals and deployment of standardization programs is underlined. It should be noted that the market size is a critical success factor for the localization projects. There is an opportunity to consolidate the needs of oil and gas exporters to unite the efforts for the innovative product development and fundamental studies for the oil and gas industry. It has been shown in the paper that localization is an efficient approach for the technology transfer, the creation of high value added workplaces, suppliers development, advanced project management practices and competency development. A few successful examples from Schlumberger perforation systems manufacturing is used to present novel technology adaptation to make innovative products available on the Russian market. The deployed LEAN practices have become the key for the manufacturing processes optimization.

References

1. Ampilov Yu.P., Sanctions and low oil prices: new challenges of oil and gas industry in Russia (In Russ.), Mineral'nye resursy Rossii. Ekonomika i upravlenie, 2017, no. 2, pp. 38–50.

2. Stefankov I.O., Razrabotka instrumentariya strategicheskogo razvitiya promyshlennykh predpriyatiy v usloviyakh politiki importozameshcheniya (Sreating of tools for strategic development of industrial enterprises in the context of import substitution policies): thesis of candidat on economic science, Rostov-na-Donu, 2015.

3. Valiullin I.M., Andreeva N.N., Belokhvostova M.S., Governance of import substitution with domestic processes and technology (In Russ.), Neftyanoe khozyaystvo = Oil Industry, 2015, no. 5, pp. 18–21.

4. Anisimova E.A., Directions for ensuring the development of industry and import substitution in Russia (In Russ.), NovaInfo, 2005, no. 33-2, URL: http://novainfo.ru/article/3528.

5. URL: https://data.oecd.org/lprdty/gdp-per-hour-worked.htm.

6. URL: https://www.vedomosti.ru/economics/articles/2017/06/29/700940-minekonomiki-proizvoditelnost-truda.

7. URL: http://www.cdu.ru/catalog/mintop/infograf/022016/.

8. URL: https://www.nytimes.com/2017/03/07/business/china-trade-manufacturing-europe.html.

9. Decision of the Government of the Russian Federation No. 719 dated 17 July 2015 “Rules and criteria for classifying products as industrial products that have no analogues produced in Russia”, URL: http://static.government.ru/media/files/tGtA4PWJh51bG2UGdQGQpbBkd9dSFy0f.pdf

10. Order of the government of the Russian Federation of May 10, 2017 no. 550 “About confirmation of production of industrial output in the territory of the Russian Federation and modification” of the Order of the Government of the Russian Federation of July 17, 2015 No. 719”.

11. Protokol zasedaniya Pravitel'stvennoy komissii po importozameshcheniyu (Minutes of the meeting of the Government Commission on Import Substitution) of 16 May 2017, St. Petrsburg, URL: http://government.ru/news/27681/.

12. URL: http://www.nti.one/nti/

13. URL: https://rg.ru/2014/08/05/zameshenie.html

14. Kirillov V.N., Vneshneekonomicheskiy faktor v innovatsionnom razvitii ekonomiki (Foreign economic factor in the innovative development of the economy), thesis of doctor of economic science, Moscow, 2013.

The analysis of import-replacement practices for the oil and gas products manufacturing in Russian Federation is presented in the paper. The challenges to efficiently deploy the import-replacement policy in the country are identified and analyzed. Based on the retrospective analysis of import-replacement in Latin America, South-East Asia, and ongoing programs in China and India it is possible to make a conclusion about the importance of long term planning and focus on export to ensure success in import-replacement. The importance to establish product development capabilities and competency development programs for Russian professionals and deployment of standardization programs is underlined. It should be noted that the market size is a critical success factor for the localization projects. There is an opportunity to consolidate the needs of oil and gas exporters to unite the efforts for the innovative product development and fundamental studies for the oil and gas industry. It has been shown in the paper that localization is an efficient approach for the technology transfer, the creation of high value added workplaces, suppliers development, advanced project management practices and competency development. A few successful examples from Schlumberger perforation systems manufacturing is used to present novel technology adaptation to make innovative products available on the Russian market. The deployed LEAN practices have become the key for the manufacturing processes optimization.

References

1. Ampilov Yu.P., Sanctions and low oil prices: new challenges of oil and gas industry in Russia (In Russ.), Mineral'nye resursy Rossii. Ekonomika i upravlenie, 2017, no. 2, pp. 38–50.

2. Stefankov I.O., Razrabotka instrumentariya strategicheskogo razvitiya promyshlennykh predpriyatiy v usloviyakh politiki importozameshcheniya (Sreating of tools for strategic development of industrial enterprises in the context of import substitution policies): thesis of candidat on economic science, Rostov-na-Donu, 2015.

3. Valiullin I.M., Andreeva N.N., Belokhvostova M.S., Governance of import substitution with domestic processes and technology (In Russ.), Neftyanoe khozyaystvo = Oil Industry, 2015, no. 5, pp. 18–21.

4. Anisimova E.A., Directions for ensuring the development of industry and import substitution in Russia (In Russ.), NovaInfo, 2005, no. 33-2, URL: http://novainfo.ru/article/3528.

5. URL: https://data.oecd.org/lprdty/gdp-per-hour-worked.htm.

6. URL: https://www.vedomosti.ru/economics/articles/2017/06/29/700940-minekonomiki-proizvoditelnost-truda.

7. URL: http://www.cdu.ru/catalog/mintop/infograf/022016/.

8. URL: https://www.nytimes.com/2017/03/07/business/china-trade-manufacturing-europe.html.

9. Decision of the Government of the Russian Federation No. 719 dated 17 July 2015 “Rules and criteria for classifying products as industrial products that have no analogues produced in Russia”, URL: http://static.government.ru/media/files/tGtA4PWJh51bG2UGdQGQpbBkd9dSFy0f.pdf

10. Order of the government of the Russian Federation of May 10, 2017 no. 550 “About confirmation of production of industrial output in the territory of the Russian Federation and modification” of the Order of the Government of the Russian Federation of July 17, 2015 No. 719”.

11. Protokol zasedaniya Pravitel'stvennoy komissii po importozameshcheniyu (Minutes of the meeting of the Government Commission on Import Substitution) of 16 May 2017, St. Petrsburg, URL: http://government.ru/news/27681/.

12. URL: http://www.nti.one/nti/

13. URL: https://rg.ru/2014/08/05/zameshenie.html

14. Kirillov V.N., Vneshneekonomicheskiy faktor v innovatsionnom razvitii ekonomiki (Foreign economic factor in the innovative development of the economy), thesis of doctor of economic science, Moscow, 2013.

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