ConocoPhillips & Gazprom Sign MOU for Shtokman Development

ConocoPhillips has signed a Memorandum of Understanding with Gazprom that will allow the two companies to undertake a joint study on the development of the Shtokman gas field in the Barents Sea.

The cooperative study will include the evaluation of liquefied natural gas (LNG) feasibility and transportation to the United States and European markets. A steering committee comprised of representatives from the two companies will govern the work efforts and continue to align the two organizations for partnership in 2005.

The Shtokman field, discovered in 1988, is estimated to contain more than 100 trillion cubic feet of gas. Located approximately 350 miles off the northwest coast of Russia in the South Barents Sea Basin in water depths of 1,000 feet, the Shtokman field will require three or four phases for full field development.

Earlier this year, ConocoPhillips became a strategic equity investor in LUKOIL by purchasing a 7.6 percent equity interest in the Russian oil company, as well as a 30 percent interest in a joint venture with LUKOIL in the Timan-Pechora basin.