An Independent Petroleum Association of America delegation will visit the Commonwealth of Independent States next month to seek business opportunities there for U.S. independents producers.
The delegation, representing 15 independent oil companies, will visit Moscow and then split into five groups to meet with local producing associations and visit oil fields. Participants have been selected.
After the trip, participants will prepare a report for other IPAA members outlining opportunities and commercial aspects of doing business in the former Soviet Union.
Gene Ames, IPAA chairman, said perhaps only 50 privately held independents and 50 publicly traded independents have the resources to invest in the C.I.S.
He said there is a great possibility of independents forming joint ventures for projects there, most likely aimed at improving production from existing fields.
The Russian oil ministry, working through the U.S. Department of Energy, invited U.S. independents for the week long trip.
IPAA SEMINAR
IPAA disclosed the project during an Arlington, Va., seminar it sponsored on oil and gas opportunities in the C. I. S. for American independents.
Gueorgiy Markasov, economic counselor at the Russian embassy in Washington, D.C., said Russia wants smaller American producers to help it maintain production.
"It's really up to American companies to find the place they want to work, and they can start work rather quickly," he said. "There is no limitation of how big or small the company should be."
He said the Russian government won't give U.S. independents special tax breaks, but "we will be paying special attention to them" and will help them find "appropriate partners and appropriate projects."
"We will try to make it as easy as possible for American independent oil producers to get into action and start producing and exporting oil."
Markasov predicted Russia's hydrocarbon export tax will be replaced with an import tax within a year.
Representatives of various U.S. agencies told the meeting there are opportunities for smaller oil companies that would not be economic for larger oil companies.
Christina Bolton, deputy assistant secretary of commerce for basic industries, said major oil companies are more bureaucratic, while "independents have the flexibility to act more quickly."
Bolton heads a new federal task force that is trying to facilitate U.S. oil and gas investments in Russia.
Roy Zimmerman, Chase Manhattan Bank's managing director of global energy, warned independents they will not be able to obtain loans for exploration ventures in the C.I.S. "It's just like it is in the states."
He said independents, unlike majors, may be able to get smaller contracts in C.I.S. countries and "slip in under the radar" of sentiment against foreign participation in oil developments.
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