New Industry Fund Develops Russian Oil Production Technologies
The New Industry Venture Fund (New Industry Ventures — a joint venture fund of Gazprom Neft, Gazprombank, the Russian Venture Company (RVC) and VEB Ventures) launched the first investment project aimed at the development of technology in the field of multi-well completion.
New Industry has invested in ADL Completion, a company specialising in the development and production of technological solutions in the field of multi-well and multi-hole well completion (MEC). The innovative start-up has received all the necessary approvals, including the approval of an independent expert technical council and the Fund’s investment committee. The volume of investments amounted to 100 million roubles.
The project supported by the Fund is aimed at the development of the MEC technology, which allows building side-tracks in existing wells while maintaining the flow rate of the main trunk. The solution passed R&D, bench tests, and has a prototype system, and it is ready for mass production.
Support from the New Industry Foundation will allow the developer to continue to improve the MEC technology, including intellectual completion and completion with multi-stage hydraulic fracturing, to solve more technically challenging tasks, as well as expand production capacities.
Vadim Yakovlev, Deputy General Director for Upstream Gazprom Neft
Today, a significant part of our projects is related to the development of hard-to-recover reserves. Their success directly depends on the level of technology used. The solutions we need are not always on the market; often, we have to create them together with our partners. The implementation of the first investment project of the New Industry Fund will provide an opportunity for the development of an innovative domestic solution that has significant potential for high-tech drilling in fields with complex geology. Such projects are needed not only by our company, but they also allow the development of the entire Russian oil industry.
Tatyana Morozova, General Director of the New Industry Fund
In the next few years, multi-well completion will move from a premium product to a category of cost-effective and sought-after products for subsoil users.
Alexander Stepanov, Deputy Chairman of the Management Board of Gazprombank
Given the professionalism of the ADL team, the relevance of such localized technologies, as well as the prospects for the development of the company, the Bank and other members of the Fund had full consensus on the first transaction, which, indeed, is always the most responsible. We hope that the experience of Gazprombank and our partners in the New Industry will help ADL Completion strengthen its market position.
Alexey Basov, Deputy General Director - Investment Director, RVC
The oil industry around the world is becoming increasingly high-tech. Many traditional fields are almost depleted, production levels are falling, and the time for “difficult” oil is coming. This is especially true for Russia, where undistributed reserves are located in remote and environmentally fragile regions. The New Industry Venture Fund was created to support innovative companies and start-ups that create breakthrough technologies in the oil and gas sector. High-tech solutions of the ADL Finishing company have proven their effectiveness by successfully passing field tests at the facilities of the largest Russian oil companies. The ADL Completion developments are highly competitive and will be widely in demand both in Russia and abroad.
Veronica Fiedler, Senior Managing Director, VEB Ventures
We are pleased that the Fund has quickly entered the investment point. The deal with ADL Completion is undoubtedly exciting both in terms of technology and product demand and in terms of the quality of partners who are now in the cap table with us. We expect the year 2020 to be productive and dynamic for the Fund.