StatoilHydro will sign Shtokman agreement with Gazprom
The agreement gives StatoilHydro a 24% equity
interest in Shtokman Development Company where
Gazprom (51%) and Total (25%) are the two other
partners.
Shtokman Development Company will be responsible
for planning, financing and constructing the
infrastructure necessary for the first phase of
the Shtokman development and will own the
infrastructure for 25 years from start of
commercial production. This includes offshore
installations, pipeline to shore and the onshore
processing plants for both liquefied natural gas
(LNG) and piped gas.
The implementation of the project is subject to a
final investment decision in the second half of
2009.
`This agreement represents an opportunity for
StatoilHydro to participate in the development of
Shtokman phase 1,` says Helge Lund, CEO of
StatoilHydro. `We are looking forward to
cooperating with Gazprom and Total to realise this
frontier project.`
`The agreement signed today will open a new page
in our cooperation with the merged StatoilHydro,`
says Alexei Miller, chair of Gazprom. `We have
giant reserves of gas in the Barents Sea, while
our partners from Norway have good experience in
production and transportation of gas in harsh
Arctic conditions. Our joint efforts will be the
keystone of success in the Arctic.`
The agreement is the result of long and determined
work from both Statoil and Hydro.
`Leveraging our technology, industrial experience
and expertise from large offshore developments can
provide long-term growth opportunities in Russia,`
Mr Lund adds.
`We believe Shtokman can be a catalyst for
developing and adopting technologies capable of
operating efficiently and environmentally-safely
in cold and harsh conditions.
`The entering into of this agreement is a strong
demonstration of the joint capabilities of the
merged company StatoilHydro.`
The project planning phase aims at establishing an
acceptable technical and commercial basis for the
final investment decision, which is expected to
take place in the second half of 2009. Until the
final investment decision is made, StatoilHydro`s
exposure is limited to the company`s share of the
cost of planning and studies.
The Shtokman field, located in the Russian part of
the Barents Sea, is the world`s largest
undeveloped offshore gas field with gas initially
in place (GIIP) of around 3,700 billion cubic
metres (bcm). The annual production is estimated
to be 23.7 bcm for the first phase. The basis for
phase 1 includes both LNG and piped gas.
interest in Shtokman Development Company where
Gazprom (51%) and Total (25%) are the two other
partners.
Shtokman Development Company will be responsible
for planning, financing and constructing the
infrastructure necessary for the first phase of
the Shtokman development and will own the
infrastructure for 25 years from start of
commercial production. This includes offshore
installations, pipeline to shore and the onshore
processing plants for both liquefied natural gas
(LNG) and piped gas.
The implementation of the project is subject to a
final investment decision in the second half of
2009.
`This agreement represents an opportunity for
StatoilHydro to participate in the development of
Shtokman phase 1,` says Helge Lund, CEO of
StatoilHydro. `We are looking forward to
cooperating with Gazprom and Total to realise this
frontier project.`
`The agreement signed today will open a new page
in our cooperation with the merged StatoilHydro,`
says Alexei Miller, chair of Gazprom. `We have
giant reserves of gas in the Barents Sea, while
our partners from Norway have good experience in
production and transportation of gas in harsh
Arctic conditions. Our joint efforts will be the
keystone of success in the Arctic.`
The agreement is the result of long and determined
work from both Statoil and Hydro.
`Leveraging our technology, industrial experience
and expertise from large offshore developments can
provide long-term growth opportunities in Russia,`
Mr Lund adds.
`We believe Shtokman can be a catalyst for
developing and adopting technologies capable of
operating efficiently and environmentally-safely
in cold and harsh conditions.
`The entering into of this agreement is a strong
demonstration of the joint capabilities of the
merged company StatoilHydro.`
The project planning phase aims at establishing an
acceptable technical and commercial basis for the
final investment decision, which is expected to
take place in the second half of 2009. Until the
final investment decision is made, StatoilHydro`s
exposure is limited to the company`s share of the
cost of planning and studies.
The Shtokman field, located in the Russian part of
the Barents Sea, is the world`s largest
undeveloped offshore gas field with gas initially
in place (GIIP) of around 3,700 billion cubic
metres (bcm). The annual production is estimated
to be 23.7 bcm for the first phase. The basis for
phase 1 includes both LNG and piped gas.
