Investor Presentaiton
TMK
Oil Production in Russia Remains Strong and This Creates Long-term
Demand for High-End Oil & Field Services
Annual average oil production (including gas condensate) increased 0.8% YoY and came to 11.25 MMbd in 2019
■ Gradual stagnation of oil production from brownfields is accompanied by development of greenfield projects
Russian total oil output
Supported by increasing development of greenfields and
hard to recover reserves
TMK
MMbpd
11.5
11.2
10.9
10.6
Jan Feb
2017
Mar Apr May Jun Jul Aug Sep Oct Nov
-2018
-2019
Dec
-2020
Source: Interfax, Info TEK
OCTG demand is stable supported by existing level of
production and development of greenfields...
50
Meters (mln)
20
20
30
30
40
40
1.5
3.0
2.3 2.3 2.4
2.2
2.3
1.6
1.7
2.0 1.9 1.8
2.0
2.1
2.0
1.0
10
0.0
2010
2012
2014
2016
2018
2020F 2022F
OCTG demand (RHS)
Meters drilled (LHS)
Source: Interfax, Info TEK, Spears & Associates, TMK estimates
Tonnes (min)
(% of total oil
production)
-CAGR'19-26(a): +11.4%
19% 20%
17%
15%
11%
11%
10%
8%
8%
8% 9% 8%
8%
9%
9%
6%
4%
1%
2017 2018 2019F 2020F 2021F 2023F 2024F 2025F 2026F
■Greenfield production
Hard to recover reserves production
Source: RPI
Note: (a) corresponds to greenfield production CAGR '19-26
OCTG premium products demand is supported by
high share of horizontal drilling
Russian drilling, kmpd
80
km/d
76
76
75
71
70%
68
40
57
60
54
49
40
53
60
60
60%
53
50%
53%
51%
48%
40%
41%
30%
33%
36%
30%
20%
20
21%
10%
12%
14%
0
0%
2011
2012 2013 2014 2015
2016 2017 2018 2019
1Q 20
Total drilling
% of horizontal drilling (RHS)
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