The Gazprom headquarters hosted today a meeting dedicated to execution of the Shtokman gas and condensate field (GCF) development project. The meeting was moderated by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee.

Taking part in the meeting were Vsevolod Cherepanov, Member of the Management Committee, Head of the Gas, Gas Condensate and Oil Production Department, as well as heads and experts from Gazprom’s structural units and subsidiary companies – Gazprom dobycha shelf, Giprospetsgaz and Gazprom VNIIGAZ.

The meeting participants reviewed the materials prepared by Gazprom dobycha shelf on the front-end engineering design development for the Shtokman project. In particular, optional technical solutions for Phases 2 and 3 of the Shtokman field development were discussed. Special attention was paid to ensuring technological, environmental and fire safety at the future hydrocarbons production and transmission facilities of the Shtokman GCF.

Based on the meeting results, Gazprom’s specialized subdivisions and subsidiaries were tasked to perform the expert review of the materials provided by Gazprom dobycha shelf in order to define the optimal technical and technological solutions within the Shtokman field development process.

Background:

The Shtokman field is situated in the central part of the Russian sector of the Barents Sea.

The field’s C1 reserves make up 3.9 trillion cubic meters of gas and 56.1 million tons of gas condensate, with 3.8 trillion cubic meters of gas and 53.4 million tons of gas condensate located within Gazprom’s license area.

The Shtokman gas and condensate field development project is of strategic importance for Gazprom. The field will become a resource base for deliveries of Russian gas – both by pipeline and in the form of LNG – to the Atlantic basin markets.

Gazprom neft shelf (former Sevmorneftegaz), a wholly owned subsidiary of Gazprom, holds the gas and gas condensate exploration and production license for the Shtokman field.

Gazprom partners with Total (France) and Statoil (Norway) in the Shtokman project execution.

In February 2008 Gazprom, Total and StatoilHydro signed the Shareholder Agreement on establishing Shtokman Development AG, a special-purpose company to engineer, develop, construct, finance and operate the Phase 1 facilities intended for the Shtokman field development.

The special-purpose company will own Phase 1 infrastructure of the Shtokman field for 25 years, starting from the field commissioning date.

On February 5, 2010, taking into account the market changes, particularly on the LNG market, the Shtokman Development AG Board of Directors decided to single out the construction of the Startup Complex for Pipeline Gas Supplies into a separate stage within Phase 1.

The final investment decision on pipeline gas production is planned to be taken in March 2011 and the decision on LNG production – before the end of 2011, at the next stage. Such an approach will enable to launch pipeline gas and LNG production in 2016 and 2017, accordingly.