Novatek CEO: Arctic equipment producers need state support

Novatek has called for adopting a state support programme for enterprises that manufacture equipment for hydrocarbon production projects in the Arctic since existing support in the form of priority development areas is insufficient given that such enterprises exist throughout all of Russia, Novatek CEO and co-owner Leonid Mikhelson was quoted as saying by RIA Novosti news agency.

“We suggest thinking about systematic and long-term support measures for Russian enterprises that will be developing and manufacturing equipment for [Arctic] projects. We believe it is necessary to adopt a state-sponsored programme to support such manufacturers. At present, preferences are already provided within priority development areas, but the enterprises that have the necessary competencies are located throughout all of Russia”, Mikhelson said.

RIA Novosti noted that Novatek is implementing a project to build a large-tonnage offshore structure on the western shore of Kola Bay. Mikhelson said earlier that Novatek is considering the concept of building production facilities in the Murmansk Region for future liquefied natural gas (LNG) projects jointly with Norway’s Kvaerner.