The Gazprom Management Committee took notice of progress with “Investment Rationale for Comprehensive Development of the Shtokman Gas Condensate Field”.

The Management Committee tasked the core business units with elaborating the project of the comprehensive development of the Shtokman gas condensate field in the aim of commissioning it in 2013.

Alexey Miller, Chairman of the Gazprom Management Committee moderated a meeting dedicated to execution of Phase 1 of the Shtokman field.

Attending the meeting were the Members of the Management Committee, heads of the Company’s core business units as well as Sevmorneftegaz.

The participants discussed major issues related to implementation of Phase 1 of the Shtokman field. Particularly, the meeting addressed issues on setting up a special-purpose company to manage engineering, financing, construction and exploitation of installations at Phase 1.

The participants decided to establish the special-purpose company not later than December 20, 2007. The company’s management board must be also established during the said time period.

The core business units and Sevmorneftegaz were tasked to provide execution of the Shtokman project pursuant to the schedule, which provides synchronized start-up of gas production and supply via the pipeline as well as LNG production.

Reference:

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

Shtokman’s C1+C2 reserves make up 3.7 tcm of gas and over 31 mln t of gas condensate.

The development project of the Shtokman gas condensate field has strategic importance for Gazprom. This field will become a resource base to supply both Russian pipeline gas and gas received from utilizing LNG technologies to the markets of Atlantic basin.

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

Gazprom chose Total (France) and StatoilHydro (Norway) as partners to execute the Shtokman project.

Gazprom jointly with the partners plans to set up a special-purpose company to manage engineering, financing, construction and exploitation of installations at Phase 1 of the Shtokman field development.