E&P opportunities for service firms abound in the C.I.S.

The Commonwealth of Independent States, or the former Soviet Union, offers unparalleled opportunity across all oil and gas industry sectors despite the obvious obstacles and pitfalls in entering the market. Many existing fields have huge production potential with managed workover and rehabilitation or by application of well-established enhanced recovery techniques. If recent production declines can be reversed in a cost-effective manner, there should be a considerable source of hard currency available to fuel subsequent major capital expenditure programs. The recent politcal events in the C.I.S. have had two major impacts on Western firms' efforts to provide products and services in the oil and gas sector. The ruble collapse has caused the pricing out of most Western imports with the effect that only products or services that are of critical importance and offer significant technical advantage over locally made products remain very attractive opportunities. The establishment of internal borders within the C.I.S. may become an impediment to trade.