Legal Entity / Participation
What type of (legal) entity is PDG?
PDG is an open partnership of Dutch companies and research/knowledge institutes.
PDG operates as a public-private-partnership.
The private sector open partnership is operating in direct cooperation with Dutch State authorities, principally the Ministry of Economic Affairs, Agriculture and Innovation.
PDG is vested as a Foundation in the Netherlands, registered (Reg.No.#27358156) with the The Hague branch of the Chamber of Commerce of the Netherlands on 22 October 2009.
Why are the Dutch State Authorities directly involved?
In the energy sector, the State is an active stakeholder and decision maker That is the case in The Netherlands and particularly so in the Russian Federation.
In Russia, State authorities exercise strong direct control in the planning and execution of strategic large-scale energy projects and in realisation and governance of partnering. Combining government-to-government and business-to-business channels of cooperation is therefore often essential.
When was the PDG initiative started?
In 2007. Linked with the Dutch trade visit (November 17-18, 2007) to the Russian Federation lead by Dutch Prime Minister Balkenende, visiting President Vladimir Putin.
What type of companies and institutes are participating in PDG?
Participants are companies and institutes in the energy sector and supporting business sectors. As this is an open group, its composition may change over time as a function of scope and work programme of cooperation
Which companies/institutes are currently participating in PDG?
Participants currently are (in alphabetical order):
- A.Hak, Arctic Center / University of Groningen,
- Blue Water Energy,
- Nederlandse Gasunie N.V.,
- Imares / University of Wageningen,
- Royal Boskalis Westminster,
- Royal Haskoning DHV,
- Tideway BV,
- Van Oord.
As this is an open Group, its composition may change over time as a function of scope and work programme of cooperation.
Why are institutes participating in PDG and what is their role?
Technological innovation and process innovation, including knowledge development and training, are key dimensions of the scope of PDG activities.
Given the current focus on the arctic, development and implementation of high-end technologies, supported by active arctic research, will be critical to development success.
Why is PDG set up to be exclusively Dutch?
In the first place, bi-lateral cooperation is an important and effective means to develop economic cooperation. The Russian Federation are actively using this route, in particular in the energy sector.
In the second place, Dutch know-how and expertise is in global context very extensive and advanced with respect to the specific challenges to work in such a complex environment of deltaic low-lands and shallow water seas and estuaries, as one finds on the Yamal Peninsula and in the bordering Kara Sea.
How can interested parties apply for participation?
Interested parties shall submit to the Foundation Office for attention of the Secretary (Mr. A. Van Berkel) a written statement of interest of participation. The Foundation Office will submit to the applicant the Foundation Application Form to be filled out.
What is the procedure for handling applications
The Foundation Board evaluates the application on the basis of the subject provisions in the Foundation Articles of Association (Article 1.3) and on the basis of the Application Form, rating the relevance of the applicant expertise and capabilities with respect to the Foundation goals.
The applicant will be advised in writing of the Board acceptance/regret of the application.
Objectives / Activities
Why was PDG formed?
To strengthen Dutch industry participation in bi-lateral economic cooperation between the Netherlands and the Russian Federation.
As a means and as a structure to submit Dutch collective proposals for cooperation in the Energy Sector.
To bundle Dutch technological and industrial know-how and capabilities as a means of supporting foreign trade.
What does PDG aim to achieve?
Stimulate participations of Dutch companies and institutes in Russian energy sector projects.
Provide companies an (additional) channel for marketing their capabilities, products, and services.
Develop in particular long-term cooperation with JSC Gazprom.
How do PDG-companies and institutions assess energy developments in Arctic regions?
- The use for fossil fuels will be a necessity for many decades to come, according to many sources (among them the International Energy Agency). Oil and gas reserves in the Arctic territories are a significant addition to the world supply (US Geological Survey Circum-Arctic Resource Appraisal, May 2008), especially within the Russian Federation.
- Climate change makes the Arctic more accessible, leading to more economic activity (logistics, mining and fishery). Countries with jurisdiction over these Arctic territories (i.e. the Russian Federation) want to develop their oil and gas reserves.
- The care for the environment, habitat and indigenous population is set in the law and regulations of the countries involved, as well as in international treaties and conventions.
- The companies and institutions associated with Project Delta Group offer their services for the development of the Arctic territories, keeping in mind the great environmental value the area has. The Project Delta Group members believe the exploration and production of oil and gas in the Arctic territories need to be bound by strict principles, like the OESO-guidelines for CSR at multinational firms.
- The Dutch companies and institutions have expertise in their area that they are willing to share with their Russian partners to make exploration and development happen in a more innovative way.
- These topics are part of the discussion with Russians partners, for example at the trade mission in Moscow of November 2013. At this event, the concept of Strategic Environmental Assessments (SEA) has been presented by the Netherlands at several private, public and political talks.
Where does PDG concentrate its activities?
Currently in the Russian Federation. Current principal focus is on future developments of gas/oil fields and supporting infrastructures on the ‘Yamal Peninsula’ and in the bordering Kara Sea.
How does PDG aim to stimulate participations?
Through technological cooperation in project-focused scouting studies and pre-feasibility studies.
Through contributing relevant know-how and capabilities which are complementary to the Russian party(s) know-how and capabilities.
Through direct involvement in development concept design and in supporting technology innovation.
Is PDG aiming to participate in Projects as a consortium?
No! PDG is not a business consortium. It will not engage in commercial project participation. It will not act as a tendering and/or bidding entity.
PDG activities will be connected to the pre-tendering and pre-consortium stages of future development projects. They will be concentrated on concept development design, pre-feasibility studies, technological innovation and research, knowledge development and training.
The companies participating in PDG will act individually in any commercial project tenders, in joint venture formation etc.
In what specific technological fields does PDG envisage to make complementary contributions?
There are potentially many, given the large band-width of technological know-how and capabilities of the PDG participating companies and institutes.
To name just a few:
Well and pipeline technology innovation, automation of field and process facilities, infrastructure development in low-lands, coastal settings and shallow water, heavy lift and marine transport, offshore and subsea technologies and processes, Low-pressure gas production (enhanced recovery), environmental and safety management.
How important is the Agreement of Strategic Cooperation Agreement between OAO Gazprom and the Project Delta Group Foundation, signed in St. Petersburg on 17 June 2010?
It is a crucial agreement in several ways.
It is a high level agreement that defines a broad range of topics for cooperation between the Russian and Dutch parties.
It’s 5 yearly initial term and renewability provide a solid basis for durable long-term cooperation.
How can PDG contribute to the preservation of the very fragile and sensitive living habitat and eco-system of the arctic?
An important dimension of the PDG concept proposals is to assess how fields and infrastructures developments can be best positioned, making use of combinations of land-based and sea-based solutions.
A specific PDG proposal that could contribute to sustainable development is the possible future usage of a coastal land extension as an area to concentrate large-scale industrial and civil infrastructures.
In this context, the extensive experience of developing the Maasvlakte compliant with the stringent Dutch environmental standards and regulations, can serve as a valuable benchmark.
Process and facilities automation is another good example. It will allow to reduce the number of people required in operating industrial and civil infrastructures in the arctic.
How are PDG activities being funded?
Day-to-day administrative costs of running the organisation are funded through participant annual contributions.
Project-related costs will be covered separately through dedicated project budgets. Project-related funding terms will be subject to negotiated agreements between the parties involved.