Mr. S.M. Leus, head of Department of Industry and Transport of Murmansk Region

The non-profit organization "Association of Suppliers of Oil and Gas Industry "Murmanshelf" was registered on the 12th of May 2006.

The association was founded based on item 2 of the Memorandum on Mutual Understanding in Technical and Economic Cooperation between Murmansk Region Government and Statoil ASA company (dated 18 August 2005) and an Agreement between Murmansk Region Government and Statoil ASA company on support of the project on creation of union of suppliers for oil and gas industry in Murmansk (dated 15 February 2006). The main aim of its creation is the implementation of project "Programme for the Development of Network of Suppliers for Oil and Gas Industry"

The founders of the association are the Department of Industry and Transport of Murmansk Region, Union of Industrialists and Entrepreneurs (Employers) of Murmansk Region and Northern Chamber of Business and Industry.

The work on the creation of the association has been carried out with direct participation and support from Statoil ASA Company. The leading Norwegian oil company "Statoil" is one of the largest in the world and possesses the most novel technologies and unique experience in development of fields on continental shelf and deep sea.

The factor behind success of the Norwegian model is the transparency of the system of the work with regional suppliers and special system of certification of supplying companies.

"Murmanshelf association is oriented to the development of the enterprises first of all in Murmansk region for their involvement into the network of suppliers of goods, works and services for oil and gas field. The strategy for the expansion of industrial facilities of the regional enterprises is especially actual in connection with the start of the works on development of one of the world's largest in supply Stockman gas condensate field in the Barents sea. Development of the field requires huge supplies of construction materials, metal constructions, working clothes, foodstuff; performance of construction, installation, exploration, transport, scientific and research goods, works and services.

Despite of the well-developed industry, transport, communication and social infrastructure, the economy of Murmansk region at the present moment is not fully ready to participation in the implementation of such a large-scale project. At present the predominant position in the industrial production of the Murmansk region is taken by mining complex, power engineering and human services. Production of construction materials, mechanical engineering and human services are underdeveloped. The potential of the construction complex though has positive development dynamics is evidently insufficient. The participation opportunities for the enterprises of Murmansk region in development of Stockman and other oil and gas fields on the Northern seas shelf largely depends on timely reorientation of companies to serving oil and gas industry.

Due to close cooperation with Murmansk Region Government, contacts with Russian and international partners in oil and gas industry, the "Murmanshelf association will contribute to the establishment of strategic partnership between regional enterprises and organizations in provision of oil and gas industry as well as in the establishment of mutually profitable relations between regional enterprises, Russian and international companies.

Having become the members of the association, the enterprises will be able to improve their competences, expand their markets and open new productions.

The association plans to hold seminars, organize courses, give practical recommendations and introduce the enterprises to the requirements of international oil and gas industry, monitoring of the existing market and development of recommendations for the members of the association.

"Murmanshelf will play an important role in the systematic exchange of experiences between the Norwegian continental shelf and the enterprises, supplying goods and services in Murmansk Region. The office of the association will become the venue for meetings between Russian and international representatives of oil and gas industry.

We are sure that the creation of such a structure in the Murmansk Region will help to increase the level of lagging industrial branches of the regions, activate the development of small and medium-scale enterprises and will contribute to effective implementation of projects on development of Stockman and other oil and gas fields of the Arctic shelf.

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The Industrial NORTH #1