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Over the past two years the domestic oil and gas sector has had to learn to function in a sector-specific sanctions regime when Western equipment and technologies became hard to access. Creating their own new competencies or turning to unfairly overlooked old ones, arranging for the transfer of the most advanced international technologies to the Russian market, and finding partners for their localisation – these issues need to be resolved today
International exhibitions have always been one of the most effective tools for establishing cooperation. The Moscow International Oil & Gas Exhibition/MIOGE and the Russian Petroleum and Gas Congress have already served for many years as the platform for negotiations on the creation of partnership relations not only in oil and gas production, but also in the production of equipment and infrastructure development. Today Olga Luniova, Director of MIOGE and the Russian Petroleum and Gas Congress, answers questions from the journal OGJRussia.
Please tell us about the history of the Moscow International Oil & Gas Exhibition/MIOGE and the main benefits for visitors and participants.
The Moscow International Oil & Gas Exhibition/MIOGE has already been held for almost 25 years and is a key working platform for specialists in the oil & gas sector, and an effective tool for increasing sales and expanding a company’s geographical footprint for sales of oil and gas equipment. The exhibition is attended by more than 20,000 specialists from oil and gas producing regions of Russia, CIS countries, and also more than 50 countries globally.
According to MIOGE 2015, over 51% of visitors come to the exhibition with the intention of procuring equipment based on the results of their visit.
Who are your traditional visitors?
The visitors of the exhibition are specialists of the oil and gas production sector, oil field service companies and design institutes from oil and gas producing regions in Russia and other countries vested with the responsibility of choosing oil and gas equipment. At the exhibition visitors are able to take a look at a wide range of oil and gas equipment from leading domestic and foreign producers and choose the products that they need to resolve their business objectives. In total, 90% of the visitors influence decision-making on the procurement of the equipment on show at the exhibition.
How does the exhibition help the business of participants? Do you have such information to hand?
We conduct regular surveys of visitors and participants: 80% of exhibitors saw an increase in brand recognition as a result of participation in the exhibition, 72% obtained objective information on the compliance of the technical and operating characteristics of the equipment on display with customer requirements through direct contacts with a large number of specialists of oil and gas production and oil field service companies. They use this information to adapt the equipment and technologies in line with customer requirements. In addition, 61% of participants found new clients, while 58% gained access to a new sales market.
What issues are highlighted in 2017 in the business programme that traditionally accompanies MIOGE?
The technical exhibition programme attracts a large number of visitors – specialists of the oil & gas sector. As part of the programme, the industry’s leading companies, and also Russian and international industry associations, hold specialist events: technical conferences, training programmes, training courses and presentations of state-of-the-art developments from exhibition participants.
In line with tradition, the Russian Petroleum and Gas Congress/RPGC 2017 will be held in June at the same time as the exhibition and will be attended by more than 1,000 delegates and 120 speakers from 40 countries. An international programme committee, including approximately 20 authoritative specialists of the global oil & gas industry, is working on the extensive congress programme. The congress programme includes more than 20 events in different formats, including plenary sessions, Russia’s dedicated roles and positions in the global oil & gas business, and also strategic development issues of the Russian oil & gas sector. Traditionally congress events are split up into topical issues for Oil Day and Gas Day. In addition to numerous expert discussions, the congress programme will include technical sessions on new equipment and technologies: oil field services and drilling, the transportation of oil and petroleum products, oil refining and petrochemicals, etc.
What key trends in the Russian oil & gas sector can you highlight and which of them will be discussed at the congress as part of MIOGE?
Despite the current economic environment (reduction in the oil price and retention of the sanction regime), Russia remains the most important centre of gravity for the world’s business and financial communities. Against the backdrop of changes in the macroeconomic situation, investments by foreign companies in Russian assets will increase. The Russian government is announcing plans to increase the localisation level in the country, inter alia, in the fuel and energy sector. Innovative development and modernisation of production facilities related to hydrocarbon exploration and production is one of the key areas of the sector’s innovative development.
When it comes to the most important strategic development initiatives of the Russian oil & gas sector determined by the Energy Strategy of Russia for the Period to 2030, the priority areas concern the establishment of oil & gas complexes in the country’s eastern regions, assimilation of the hydrocarbon potential of the continental shelf of the seas in the Arctic Ocean and northern territories of Russia, the development and territorial diversification of energy infrastructure, the development of non-fuel power generation and energy conservation. All these and many other important issues will be discussed as the sessions of the congress.
A new topic has been announced for the first time at MIOGE in 2017 – liquefied and compressed natural gas, and will showcase primarily Chinese and Korean companies interested in finding partners on the Russian market. This topic was developed with the assistance of ITE Group’s foreign offices. The Moscow International Oil & Gas Exhibition/MIOGE is part of a large portfolio of ITE’s oil & gas exhibitions and conferences in 12 countries, with more than 2,500 companies participating each year.
As in other sectors, the Russian exhibition market has in recent years contracted slightly. What is MIOGE’s secret and the reason for interest in this event? For year in year out we observe here both new and traditional market participants.
Everybody knows about the conventional image of the exhibition market as a parade and celebration of the sector. This is not true. In reality an exhibition is not only a source of topical industry information, but instead primarily a platform where you can increase your sales and find new clients, something that is particularly important at a time of crisis. Therefore many companies currently sitting on the fence should reconsider their views and participate in MIOGE.
Participation in ITE exhibitions delivers a major commercial benefit: new potential customers, partners, an expansion in the order portfolio of existing customers, and a high rate of return from the exhibition. It pays to participate. Furthermore ITE exhibitions are held in regions that are attractive from the perspective of increasing the sales of the products of our participants.
What else would the team of exhibition organisers like to say to anyone, who has marked up the dates of MIOGE in their calendar and selected the exhibition as one of the landmark events of the oil & gas sector in 2017?
The exhibition team will guarantee all terms and conditions for negotiations on the establishment of partnership projects not only in oil and gas production, but in also in the production of equipment and infrastructure development. MIOGE will provide specialists from oil and gas producing regions with a wide range of offers on the equipment on show in different thematic areas — for the convenience of visitors. The exhibition will showcase both Russian enterprises and also foreign leaders in the sector, which will provide an opportunity to discuss directly localisation and technology transfer projects that are so topical today. In addition, the Crocus Expo platform, the venue of the exhibition this year, offers additional benefits that participants and visitors will appreciate: this is the siting of large equipment in spacious pavilions and on vast open platforms, accessibility by transport, free parking, unique opportunities for hosting conferences and seminars for clients.