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Shtokman Development AG approves participation concept for Arkhangelsk region companies

October 20, 2010

According to Arkhangelsk Governor’s Press Service, Shtokman Development AG has approved a concept of integrating Arkhangelsk region companies in the Shtokman project.

The concept gives an account for regional companies’ participation possibilities in different implementation phases of the Shtokman project, the companies’ technological capacity and deadlines for order execution.

It is reported that “today’s capacity of Northern Dvina riverside shipyards has never been doubted. Moreover, an idea to construct a full-service base, facilitating the Shtokman project in the Arkhangelsk region and an intermediate base in the archipelago of Novaya Zemlya is under discussion now”.

Shtokman Development AG intends to hold several technical workshops for the regional companies in Arkhangelsk till the end of 2010. The workshops will cover main technological aspects of the field subsea tieback, mining ship and gas treatment plant construction, logistics and safety system in the course of field development and construction.

According to the Head of Investment Policy and Economic Attractiveness Department of the Arkhangelsk region Ministry of Economic Development Andrey Dunayev, the operating results of the joint working groups in the framework of the Agreement on Co-operation signed in July this year have been considered during the working meeting of the Arkhangelsk region Government’s representatives with the Shtokman Development senior management. Besides, mechanisms aimed at higher interaction efficiency in preparation for the Shtokman project implementation have been created.

At present 8 major regional companies are taking part at the Shtokman Development AG bid process under the auspices of the Arkhangelsk region government.
It is a reminder that the Shtokman field is situated in the central part of the Russian sector of the Barents Sea. The field’s C1 reserves make up 3.8 trillion cubic meters of gas and 53.3 million tons of gas condensate. The field is planned to become a resource base for deliveries of Russian gas – both by pipeline and in the form of LNG – to the Atlantic basin markets.
Gazprom neft shelf (former Sevmorneftegaz), a wholly owned subsidiary of Gazprom, holds the gas and gas condensate exploration and production license for the Shtokman field.
In February 2008 Gazprom, Total (France) and StatoilHydro (Norway) established a joint venture Shtokman Development AG, which was registered in the Swiss canton of Zug to implement the Phase 1 of the Shtokman project. 51% of the venture’s authorized capital is owned by Gazprom, 25% – by Total and 24% – by StatoilHydro. In March this year the companies confirmed their intention to take the investment decision on the Phase 1 pipeline gas production in March 2011. Pipeline gas shipments were also reported to begin in 2016.
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