Shtokman Gas Project: Shell IN, Total OUT? (Russia)

Shtokman Gas Project Shell IN Total OUT

Gazprom on Friday held working meetings with representatives of Statoil and Total as part of St. Petersburg International Economic Forum 2012.

The companies discussed the major terms of “a new agreement on the Shtokman Phase I development project.”  The Gazprom press release did not provide details on the possible new agreement, but Reuters on Tuesday reported that Shell was expected to join the project.

In February 2008 Gazprom, Total and Statoil signed the Shareholders Agreement on establishing Shtokman Development AG , a special purpose vehicle to implement Phase 1 of the project.

According to Reuters Gazprom is working to establish a new consortium comprising Shell (in place of Total), Statoil and Gazprom to bring the project to life.

Gazprom holds 51 per cent in the company, while Total and Statoil hold 25 and 24 per cent accordingly.

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. The Shtokman gas and condensate field development project is of strategic importance for Gazprom. The project implementation will give a start to a new gas production region on the Arctic shelf of Russia. The Shtokman field will become a resource base for building up deliveries of Russian pipeline gas and LNG to domestic and foreign markets.

Offshore Energy Today Staff, June 25, 2012