книги / Социально-экономический обзор Пермского края

The Perm Territory is situated on the western slope of the Ural Mountains in the basin of Kama River, the longest largest tributary to the Volga River. And there are two unofficial names of the region: the Western Urals, when it comes to its industry, and Prikamye. Prikamye and Western Ural are synonymous names. And only the PERM KRAI has not one but two such names.

Perm Territory has a population of about 3 million people, one-third of them living in Perm. The region is multinational, with representatives of more than 80 nationalities among the population. Most of these nationalities belong to three language groups: Slavic, Turkic, and Finno-Ugrian. Russians make up 83,8 % of the population; the most numerous non-Russian nationalities are Tatars (4,9 %), KomiPermyaks (4,0 %), Bashkirs (1,7 %), Ukrainians (1,5 %), Udmurts (1,1 %), Belarussians (0,6 %), Germans (0,5 %), Chuvashes (0,3 %), and Maris (0,2 %). The remaining nationalities make up 1,4 % of the population. The number of KomiPermyaks is gradually decreasing; however, they form the overwhelming majority of the population in the Komi-Permyak Autonomous District. A large percentage of the population is employed in industry (33,5 %), followed by culture (12,3 %), trade (11,9 %), agriculture (10,2 %), and management (1,8 %).

Economic development of Prikamye dates back to the XVI century. In 1558, Tsar Ivan the Terrible granted lands in the upper Kama River to the Stroganovs, manufacturers and merchants. By that decree, salt production began, trades developed, and churches and monasteries were built there. Fortress walls encircled the settlements. The Stroganovs throve on salt works on. They drilled dozens of wells which produced salt brine and then evaporate it. Such Perm salt was sold all over Russia.

The Stoganovs had no shortage at hands. That time can be characterized by large migration of people caused by pressure of the central power. People escaped from such pressure to the periphery of the state and developed the unoccupied areas. People also escaped to the Stroganovs. In total, about 15 000 people worked at their enterprises in Prikamye, and 10 000 of which were fugitives.

The state taxes, which ruined many manufactures, could not ruin the Stroganovs. People said that it was impossible to be richer than the Stoganovs.

The Sroganovs’ wealth caused raiding by savage Siberian tribes to the Prikamye settlements. Upon approval by Tsar Ivan the Terrible, the Stroganovs undertook a crusade to Siberia headed by Ermak in 1851. But the thing that was more significant than that legendary crusade was discovery in 1597 a convenient way for communication with Siberia.

Over there, behind the Urals, the Stroganovs founded Pelym, Berezov, Surgut, Tary and Narym settlements. But further, these settlements lost their importance, and regain it due to enormous oil and gas production in the north of Tyumen region in 1960.

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Thus, Prikamye became a base for the development of Siberia.

At the beginning of the XVIII century, Peter the Great made the Prikamye a base for mining industry development in Ural aimed at making Ural as armory of Russia. Activity of the Peter the Great’s manufacturers the Demididovs, Vasily Tatishchev and William de Gennin obscured the business activities of the Stroganovs. In 1723, V.N. Tatishchev, one of Peter the Great's closest associates, built the Egoshikha brass works, which quickly became an important economic and transshipment center on the banks of the navigable Kama River. Goods were exported via the Chusovaya River and then down the Kama to the Volga. As consequence of these activities the City of Perm was founded in 1723 as a small settlement near Egoshikha copper-smelting plant which was reformed to the town of Perm in 1780. In 1781 Perm became the centre of the region ruled by governorgeneral, and in 1796 – the principal town of province of the same name.

The City of Perm became an artillery workshop. Cannons produced in Perm were deployed in ships and for coast guard. The most powerful cannon could shot a 480 kg ammunition. During the Great Patriotic War, Perm delivered to front 49,000

Oil production in the Prikamye started in 1929. This was not only the commencement of Perm oil, but also the beginning of the Second Baku – field development along the Volga River, in Tatarstan and Bashkiria.

Oil business, especially after the Great Patriotic War, was spread along the entire territory of Prikamye. PERMNEFT production enterprise was established. It consists of five Field Offices (Oil and Gas Production Units) located in Krasnovishersk, Polazna, Kungur, Osa and Chernusha.

These Field Offices (Oil and Gas Production Units) competed based on the Key Production Indicators, which promoted applying new operation techniques and technologies. Internal and international situation also contributed to such competition.

As illustration, in Krasnokamensk during the Great Patriotic War (1943), the crew of Kropachev M. Ya. slant drilled a well under the bed of the Kama River. Deviation the wellhead was 420 m. Oil was produced without constructing a new rig. This was the first experience of slant drilling in the world.

Downhole turbine motor drilling was also implemented. In 1949, at the same city of Krasnokamsk, the drilling crew of Nikishin M. Ya. achieved unprecedented success – the drilling rate amounted to 1,500 meters per month.

In 1979, the 50th Anniversary of Perm Oil was celebrated. The accumulated black gold production for this period amounted to 279 000 000 tons. The production

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level reached by PERMNEFT production enterprise was 24 000 000 tons of oil per year. However, then, depression occurred and production scaled down.

This decrease, strange though it may seem, was caused by the experienced professional personnel. The most part of them were transferred to Tyumen region, and due to their assisting the Tyumen petroliferous province was brought to the production rate of 1 000 000 tons of oil per year. As a result, when they were criticized by the local authorities in Perm, they were awarded in Moscow for their performance in Siberia.

By 1985 all negative events within PERMNEFT production enterprise had been eliminated. The steady rate of growth was indicated. But other times came, and unstable economic and political situation, break of all production relations came with them. The planned system of economy was collapsed.

PERMNEFT production enterprise was struck with severe production and financial crisis. The existing management system turned out to be useless. Transfer to the market, commodity-money relations required the decisive measures to be taken, and activity of new people.

In 1993, the production facilities of PREMNEFT production enterprise began to transfer to the ownership of LUKOIL Company. It was not a simple process. In Moscow the acquisition of PERMNEFT production enterprise was planned by other company. But the citizens of Perm showed their character. As a result, on July 1, 1996 LUKOIL-Perm company was established as integral and significant part of OAO LUKOIL, and in terms of the Russian economy as a whole.

Considerations from LUKOIL Company were ensured by its President Alekperov V.Yu. and considerations from thee Perm oilmen were made by Directors of enterprises – Sukharev V.P., Tulnikov A.A., Kobyakov N.I. and Kuzyaev A.R. At the same time, the not insignificant role was played by the stand of the Perm region administration and its governor Igumnov G.V.

As a result of this process, all Perm enterprises were renamed: LUKOILPermneft, LUKOIL-Perm, LUKOIL-Permnefteorgsintez, LUKOIL-Permnefteproduct, LUKOIL-Burenie-Perm and LUKOIL-Trans.

After acquisition of all Perm enterprises by OAO LUKOIL, they began dynamically developed. This could be proved in terms of approaches to exploration, field development, raw treatment, processing and marketing, performance of social and environmental program, tax compliance, transparent and reliable financial statements and attraction as an investment.

Relations of enterprises with educational establishments – Perm State University and Perm State Technical University – were strengthened.

It is necessary to remember about the past contacts of Prikamye oilmen with Iraqi oilmen.

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They began after nationalization of IRAQ PETROLEUM Company on July 1, 1972. This nationalization was followed by other measures aimed at a complete transferring of oil reserves to the Iraqi people. The entire Oil Industry of Iraq has been nationalized by 1976.

In the course of nationalization and after nationalization, Iraq found a continuous support in the person of Soviet oil experts, including experts of PERMNEFT production enterprise. The Perm oilmen participated in establishing oil industry in the in North Rumeila, South Iraq.

Not only oilmen left Perm for Iraq, but also builders. Many builders worked at the construction and reconstruction of enterprises in Basra and under the TartarEuphrates canal construction project.

Without the least air of giving a performance, it should be noted that Iraq made an unforgettable and best impression on all the Perm Krai citizens who visited Iraq. For its history, the Iraqi people selected, retained and brought to honor such properties which cannot be questioned.

Within the years of the close cooperation with Iraq, the Minister of Petroleum Industry was Maltsev A.N., the former General Director of PERMNEFT production enterprise. He was awarded with the Title of Hero of Socialist Labor for innovations implemented in Perm oil production. In Perm he defended a PhD thesis.

Trutnev Yu.V., the existing Minister of the Natural Resources of Russia, was transferred to the minister position from the position of the Governor of PERM KRAI. Hereditary oilman, Mr. Trutnev successfully graduated from the Perm State Technical University in the faculty Oil and Gas Field Development. This man always remembers the past and respect traditions.

At present, the Republic of Iraq is being developed under the complicated international and internal situation. The internal and international situation of Russia is also not simple. But many problems will be solved, if Iraq and Russia continue, on the basis of the mutual interests, their cooperation that was commenced in the 70-ies of the XX century.

Perm

October, 2006.

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2.The PERM KRAI (TERRITORY) Development Present-Day Condition, Problems and Trends

1.General Provisions

The PERM KRAI (TERRITORY) was formed on December 1, 2005, by unification of Perm Region and Komi-Permyak Autonomous Area, and it occupies area of 160236,5 square km (0,94 % of the RUSSIAN FEDERATION territory). It covers approximately 20 % of the territory of the Ural Economic Region and represents some kind of the eastern “outpost” of Europe, 99,8 % of which area belongs to this part of world and only 0,2 % to Asia. The PERM KRAI (TERRITORY)’s area almost totally lies within the Kama river basin – the largest confluent of the Volga River. Through the canal system the Kama River provides for the outlet by water to five seas (the Caspian Sea, the Sea of Azov, the Black Sea, the Baltic Sea and the White Sea).

The remoteness of the PERM KRAI (TERRITORY) from the world economic centers is partially compensated by advantageous geographical situation determining full-fledged structure of the transportation system. This is the cross point of transcontinental railway, motor and air lines, there exists water way to the Northern and Southern Europe and oil and gas lines pass.

The geological map of the PERM KRAI (TERRITORY) is represented by various mineral products: oil and gas, mineral salts, diamonds, chromic ores, precious stones, jobbing and facing stones, construction materials (fig. 1).

To date, 214 oil and gas discoveries have been made within the PERM KRAI (TERRITORY), 152 fields of which are being developed under license agreement terms and conditions. The non-distributed reserve incorporates 62 oil and gas fields.

Verkhnekamskoe deposit of potassium salts (more precisely, sodium, potassium and magnesium chlorides), the largest in the world is located on the Territories’ area. Among the ore mineral reserves one shall mark the major beds of chromites in Saranovskoe deposit that is the only deposit of these reserves in Russia at the stage of operation. In the northern part of the PERM KRAI (TERRITORY) in Krasnovishersky district the diamond mining is arranged. The quality of produced diamonds is very high and considerable amount of the produced diamonds is used in jewelry industry. Also the deposits of quartz, selenite, marble, gold, platinum, peat, various construction materials exist within the PERM KRAI (TERRITORY) area.

The area of the PERM KRAI (TERRITORY) is rich with forest resources providing for the region’s status of the leading Russian timber and supplying bases. The forests cover the area of about 9 300 000 hectares, which is a 67 % of its territory About 60 % of forests consist of coniferous species that is the most valuable wood from economic point of view (fig. 1).

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Fig. 1.

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As of January 1, 2006, the population of the PERM KRAI (TERRITORY) was 2,748,200 people, the major part of which, 74,9 %, lived in the urban area.

The PERM KRAI (TERRITORY) may be considered as monoethnic formation as according to the last population census the Russians represent 85,2 % of the entire population’s composition of the Territory. However, the representatives of more than 140 ethnic nationalities also live in the PERM KRAI (TERRITORY) area.

To the native nationalities living within the PERM KRAI (TERRITORY) area there belong the Tatars – 136,6 thousand people (4,8 %), the Komi-Permyaks – 103,5 thousand people (3,7 %), the Bashkirs – 40,7 thousand people (1,4 %). The intense migrants flow from the near and far foreign countries formed specific ethnic structure of the PERM KRAI (TERRITORY) population: the increase in population of the Caucasus’ and Middle Asia’s nationalities’ representatives is observed.

The representatives of one of ethnic Finno-Ugric linguistic groups – the KomiPermyaks compactly live within the PERM KRAI (TERRITORY)’s area forming 59 % of Komi-Permyak Autonomous Area’s population.

Diversified branch structure of the economy is one of the Region’s strengths. The sector oriented to the world market is one of the most successfully functioning sectors of the PERM KRAI (TERRITORY)’s economy. At number of the employed equal to 13,1 % of the total number 40,9 % of the entire turnover, 43,6 % of all investments and 78,6 % of profit received in the Region in 2005 falls to this sector.

The Region’s economy is of pronounced industrial character, the considerable part of which is occupied by enterprises manufacturing export-oriented products. The leading specific branches of the PERM KRAI (TERRITORY) are:

–extraction of hydrocarbons and production of oil products (on the basis of diversified complex of enterprises on oil and gas production and refining (processing) that belongs to NK LUKOIL);

–chemical production;

–metallurgical production;

–pulp-and-paper production;

–production of timber and wooden articles; and

–machine building.

In terms of industrial output the PERM KRAI (TERRITORY) occupied the 10th place in the Russian Federation in 2005. The Region possesses the high-strength power base the enterprises of which are independent on each other in many aspects and have different technological basis. In terms of power production the Territory occupies the 8th place in the Russian Federation and represents the power excessive area.

The PERM KRAI (TERRITORY) plays a significant role in the process of federal budget formation being one of few donating regions: in 2005 it occupied the tenth place in terms of total amount of taxes and dues revenues to the budget system of the country.

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