Statoil Recommends Snohvit Plan

Statoil has submitted, to its partners in Snohvit, a recommendation to seek an offical go-ahead for plans to develop and operate the field which is located in the Barents Sea. Also being recommended is a plan for installation and operation of an associated land-based plant for gas liquefaction be sent to the authorities.

Snohvit project director Egil Gjesteland says that a decision will be taken next week, after the partnership has had time to consider the Statoil proposals.

This field could be the first offshore development in the Barents Sea, and the first project in Europe to be based on exports of liquefied natural gas. Plans call for gas and condensate to be recovered through subsea installations controlled from a landing and export terminal at Melkoya near Hammerfest in western Finnmark county.

The project is estimated at NOK 46 billion in money of the day. Statoil has 22.29 percent interest in Snohvit, while the state's direct financial interest (SDFI) has 30 percent. The other partners are TotalFinaElf with 18.4 percent, Gaz de France with 12 percent, Norsk Hydro with 10 percent, Amerada Hess with 3.26 per cent, RWE DEA with 2.81 percent and Svenska Petroleum with 1.24 per cent.