Shtokman Phase 1 development contracts

Shtokman Development Co. (SDC) has awarded several engineering contracts associated with Phase 1 development of Shtokman natural gas-condensate field in the Barents Sea. Gas from Shtokman will be sent by pipeline to Europe in 2013, and LNG will be shipped to North America in 2014. The field holds 3800 billion cum of gas reserves and 37 million tons of condensate. The first phase of the field’s development will result in production of 23.7 billion cum/yr of gas. SDC estimates that the first phase-one of four planned stages-will cost USD 15 billion. It hopes to make a final investment decision by the end of 2009. French engineering firm Doris was awarded a front-end engineering and design (FEED) contract for the subsea production system and offshore technological platform. JP Kenny will perform FEED work on the 600km subsea pipeline to shore. SDC also appointed two Russia-based engineering companies, Rubin and Giprospetsgaz, to work with their European counterparts. Technip SA received the FEED contract to design, by mid-2009, the onshore facilities, which will be sited adjacent to Teriberka, 120km east of Murmansk, Russia. Facilities will include a 7.5 million tn/yr liquefaction train and LNG export facility, and a gas treatment plant and pipeline for delivering natural gas to Russian and European markets. SDC shareholders are wholly owned OAO Gazprom subsidiary Sevmorneftegaz 51%, Total SA 25%, and StatoilHydro 24%.

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