At the Gazprom Headquarters, Alexey Miller, Chairman of the Gazprom Management Committee held a meeting to address the implementation of the Shtokman gas condensate field development project.

Attending the meeting were heads and specialists of the Gazprom structural departments and subsidiaries as well as R&D and engineering institutes.

The participants discussed the progress with the project preparation. The field has a strategic importance for Russian gas export to Europe via the Nord Stream gas pipeline as well as for LNG production.

The parties considered a business model to implement the Shtokman project and proposed the model to be specified. Special attention was paid to the project implementation schedule to provide synchronized gas production start-up, gas supply via the pipeline and LNG production with Gazprom’s long-term gas balance.

The parties discussed issues relevant to seaport LNG complex of the Shtokman field.

The meeting also addressed issues relevant to material and technical resources procurement to develop the Shtokman gas condensate field. The participants specified that the preference will be given to the domestically produced equipment at the equal level of equipment characteristics.

The Gazprom core business units and subsidiaries as well as research and engineering institutes were tasked to provide further project implementation.

Reference:

In October 2006, the Gazprom Management Committee decided that pipeline gas deliveries from the Shtokman field to the European market would take priority over LNG shipments. Shtokman was identified as the resource base for Russian gas export to Europe via the Nord Stream gas pipeline. Gazprom will develop the field on its own, without foreign partners.

The Shtokman gas and condensate field is located in the central part of the Russian sector of the Barents Sea offshore.

Approved by the Russian Federation Nature Ministry’s State Commission for Mineral Resources in January 2006, Shtokman’s C1+C2 reserves make up 3.7 tcm of gas and over 31 mln t of gas condensate.

Sevmorneftegaz (a wholly owned subsidiary of Gazprom) holds the license to search for, explore and produce gas and gas condensate in the Shtokman field.