Gazprom Puts Shtokman on Hold

Gazprom Puts Shtokman on Hold

Russia’s energy giant, Gazprom, has given up on the Shtokman gas field development project.

After years of disagreements among the Shtokman partners, Gazprom, Statoil and Total, on FID decision for the project, Gazprom has decided to shelf the development project of one of the world’s largest natural gas fields for some better times.

The investment decision has been postponed several times based on framework conditions, high investment costs and uncertain profitability. At the same time, the energy realities have changed. Large natural gas deposits, especially onshore USA, have impacted the gas market fundamentally.

Reuters has quoted Vsevolod Cherepanov, head of Gazprom’s production department, as saying : “All parties have come to the conclusion that the financing is too high to be able to do it for the time being.”

It has been reported that the FID for the project will now not be achieved before 2014.

The Shtokman field is situated in the central part of the continental shelf within the Russian sector of the Barents Sea. C1 reserves of the field make up 3.9 trillion cubic meters of gas and 56 million tons of gas condensate.

Offshore Energy Today Staff, August 30, 2012