National Oilwell Varco, a U.S.-based oil equipment company, launched a project that is aimed at setting up a drilling rig plant in Russia’s central region of Kostroma. An amount of RUR2.7 billion, which is equivalent to USD87.5 million dollars, has been invested for this purpose.

The plant is expected to start its operation in the year 2014. It will produce mobile rigs, stationary rigs, and repair tools. It was in 2012 that Varco started its work on establishing this plant, prompted by Russia’s introduction of a 10-percent import tax on all foreign drilling equipment. In order to achieve its goal, Varco also collaborated with the Volgograd Drilling Tools Plant and the Uralmash Oil and Gas Equipment Holding Company.

A number of major producers of crude oil in Russia have shown interest towards Varco’s Kostroma-made drilling rigs.