FOREIGN AVAILABILITY OF OIL EQUIPMENT REQUIRED BY THE SOVIET UNION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP93T01142R000100160011-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 23, 2016
• Document Release Date: November 30, 2011
• Sequence Number: 11
• Content Type: MISC

Declassified and Approved For Release 2011/11/30: CIA-RDP93T01142R000100160011-4
Foreign Availability of Oil Equipment Required
by the Soviet Union
We believe the Soviet Union has multiple non-US sources to
acquire the specialized petroleum equipment required to develop
the resources of the onshore Astrakan and Karachaganak gasfields
and the offshore Sakhalin Island gasfield. In addition, offshore
wellhead equipment including high pressure blowout preventers can
be purchased outside of the U.S. In some cases the Soviets or
their western project contractors may have to turn to the
manufacturing subsidiaries of U.S. companies operating in Western
Europe Cp_d_ e-U-. J, or to foreign companies operating as a joint
venture with a U.S. company.
Astrakan Gas Development
Engineering and project management services can be supplied
by companies such as Technip of France and Lurgi of West
Germany. Downhole completion gear is the only equipment for
which the Soviets may have to rely on U.S. foreign
subsidiaries. U.S. companies and their foreign subsidiaries
dominate the downhole market for gear such as packers, flow
control equipment for production control, well safety valves for
1
high pressure, high H2S service. However, a few French firms are
developing the capability to compete in this market.
Gas Compressors for Karachaganak
Numerous foreign firms can manufacture large, high pressure
gas compressors. British, French, Italian, West German, and
A Declassified and Approved For Release 2011/11/30: CIA-RDP93T01142R000100160011-4
 Declassified and Approved For Release 2011/11/30: CIA-RDP93T01142R000100160011-4
Japanese companies all provide intense competition for U.S.
suppliers. The strength of the dollar has severely hurt U.S.
companies. Nuovo Pignone of Italy is perhaps one of the
strongest foreign competitors producing gas compressors.
Ice Tolerant Platforms for Sakhalin
The production of large offshore platforms for Arctic
conditions is dominated by Japanese and Finnish companies. Large
offshore drilling platforms for use offshore Alaska are being
manufactured in Japan. Numerous foreign companies in Western
Europe and Japan specialize in the engineering design of these
facilities. A factory for ice tolerant offshore platforms for
the Far East could probably also be built by these suppliers.
Recently, the South Koreans have entered the offshore semi-
submersible market and probably have the capability to produce
platforms for Arctic conditions. Two companies in Singapore also
produce large offshore drilling platforms and probably could gear
for the Arctic market.
Offshore Wellhead Equipment
The offshore wellhead equipment is dominated by U.S.
companies and their foreign subsidiaries. One U.S. company's
subsidiary in West Germany has the ability to sell high pressure
equipment to the Soviet Union without an export license because
it acquired its technology prior to the imposition of foreign
policy controls on exploration and production equipment prior to
1978.
Declassified and Approved For Release 2011/11/30: CIA-RDP93T01142R000100160011-4
 Declassified and Approved For Release 2011/11/30: CIA-RDP93T01142R000100160011-4
While U.S. companies dominate the offshore wellhead field,
Norwegian, French, and British companies are all gearing up to
compete in this market. The technology is widespread and as the
deep offshore market expands, U.S. companies will face increasing
foreign competition. Numerous foreign companies in including the
Romanians can produce offshore wellhead equipment for low to
medium measure service.
Declassified and Approved For Release 2011/11/30: CIA-RDP93T01142R000100160011-4