OREANDA-NEWS. December 31, 2009. Prime Minister of the Russian Federation Vladimir Putin held a working meeting with Sergey Frank, Sovcomflot President and CEO.

Sergey Frank reported to the head of Russia’s Government about the results of the SCF Group’s activities in 2005-2009 and about the Group’s Strategy for 2010-2015.

During the past five years the SCF Group’s fleet has grown by three times and currently has reached 10.4 million tones (DWT). The average age of the SCF Group’s tankers has been reduced from 7.5 to 6 years (one of the youngest fleets in the world shipping). Revenues have increased more than three times. The market value of the company has increased by five times. Dividends paid have grown by 14 times.

Significant qualitative changes in the SCF Group’s activities have taken place. A whole range of new transportation technologies has been mastered, which allowed to widen the spectrum and improve the quality of services offered to customers. Seaborne transportation of liquefied natural gas (LNG) and oil shuttle trade in harsh climate conditions of the Arctic have been successfully developed. In 2009 the company started to operate the supply vessels servicing drilling platforms.

The Strategy approved by the Board of Directors aims at doubling the operational and financial results by 2015. It is planned to significantly increase the company’s share of servicing Russia’s foreign trade, including complex logistics solutions for the implementation of Russia’s offshore projects, by servicing the requirements of oil and gas companies at all phases of the production cycle, including offshore oil and gas production.

The setting up of a national provider for the complex servicing of Russia’s offshore fields and offshore oil and gas development on the basis of SCF Group, specialized in operating in harsh ice conditions of the Far-Eastern and Arctic seas, is an important element of the Strategy. More than 30 per cent of the SCF Group’s Investment Programme totaling USD5.5 billion is to be allocated to the servicing of Russia’s oil and gas production. The major part of these investments are to be made by competitive cooperation with the enterprises of the national shipbuilding complex.

As a major customer of Russia’s merchant shipbuilding SCF Group intends to broaden the line of ships being built at the national shipyards by constructing large tankers of Suezmax type, Arctic ice-classed LNG carriers and specialized supply fleet for servicing offshore oil and gas production.

Prime Minister Vladimir Putin was informed about Sovcomflot’s plans regarding pilot cargo voyages eastbound along the Northern Sea Route during the forthcoming navigation of 2010, arranged jointly with FGUP Atomflot. The work is being carried out in cooperation with oil and gas companies which find the markets of the Asia-Pacific Region to be most attractive. Such voyages will contribute to gaining necessary experience in operating large tankers of the Arctic ice class along the Northern Sea Route with a view to arrange future regular seaborne transportation of hydrocarbons from the Yamal peninsula and other offshore fields of the Arctic region.

SCF (Sovcomflot) Group is Russia’s largest shipping company. One hundred per cent of its shares are owned by the State. The SCF Group’s fleet is amongst the five leading tanker companies in the world and operates 147 vessels with a total deadweight (dwt) of more than 10.4 million tonnes. The current shipbuilding portfolio includes 16 vessels of 1.55 million tonnes dwt. The average age of vessels in the tanker fleet is about six years (the world average age is 12 years).

• The company owns the largest ice-class fleet, being No.1 in the segment of the Arctic shuttle tankers and ice-classed LNG tankers;
• SCF Group is a world leader in the product carrier segment by deadweight; it is the second largest in the Aframax tanker segment;
• The Group’s services offered to its customers include transporting hydrocarbons, trans-shipping crude oil via FSO facilities, terminal management and developing effective logistics for transporting energy, and providing supply vessels services to drilling rigs and offshore platforms;
• SCF Group participates in the development of projects for the complex servicing offshore oil and gas fields, including the construction and the operation of the offshore drilling equipment;
• The line of vessels under construction ordered by Sovcomflot from Russia’s yards includes product carriers of MR class, unique shuttle tankers of enhanced ice class for servicing oil and gas offshore fields in the Arctic region, and port tugs.