Gazprom and Total Meet to Discuss Shtokman Development



Gazprom hosted a working meeting between Alexey Miller, Chairman of Gazprom's Management Committee and Thierry Desmarest, Chairman & Chief Executive Officer of the Total Group.

The meeting was held within the consultations with the firms included in a short list of bidders for the first development stage of the Shtokman gas condensate field.

The parties addressed the possibilities of developing the Shtokman field, producing liquefied natural gas (LNG) and shipping it to the USA given Total's capacities and offers.

The parties also dealt with interaction in the exploration and development of new hard-to-reach oil and gas fields.

Joint gas production projects in third countries were considered another top priority of cooperation.

A focus of the meeting also fell on potential deepening of technical & economic cooperation while operating sour gas fields for the purpose of improving development parameters and cutting production costs, with special emphasis to be placed on the mutually beneficial use of both companies' experience and advanced technologies in regard with the most efficient and eco-friendly utilization of gas in the energy sector.

Alexey Miller and Thierry Desmarest highly appreciated the results of joint endeavors aimed at constructing field infrastructure during stages 2 and 3 of the Persian Gulf-located South Pars field project.

The Shtokman gas condensate field development is a top priority project of Gazprom in the LNG sector. So far, Gazprom has come up with a short-list of companies – its potential partners in executing the first phase of the Shtokman development project including the construction of a natural gas liquefaction plant. Said list includes such firms as Statoil, Total, Chevron, Hydro and ConocoPhillips. In the first quarter of 2006, Gazprom is resolute to select two or three companies that will form a consortium for the Shtokman project implementation.

The Shtokman field is located in the central Russian sector of the Barents Sea offshore, 650 km from the Murmansk city's port. The field tapped gas and condensate reserves account for 3.2 tcm and 30.97 mln t, respectively.

Stages 2 and 3 of the Persian Gulf-located South Pars field were initiated in 1997 by the Consortium comprised of Total (France) – 40 percent, Petronas (Malaysia) – 30 percent and Gazprom – 30 percent. The Consortium was involved in the construction of two offshore platforms each with ten production wells, two 100-km-long underwater gas pipelines and a 20 bcm/y onshore gas plant in Assalouyeh.

RELATED COMPANIES
Company: Norsk Hydro ASA more info
Operates 1 Offshore Rigs
 - Sentry Petroleum Appoints Former Norsk Hydro Analyst to Board of Directors (Dec 29)
 - Hydro Under Investigation for Former Libya Oil Operations (Oct 07)
 - SeaBird First Contract Award for SeaBed Operations (Apr 28)
Company: OAO Gazprom more info
 - Ukraine And Russia Both Claim Victory In Gas Dispute (Dec 22)
 - Gazprom to Splurge on EU Gas Pipe as US Weighs Penalties (Dec 19)
 - Court Rejects PGniG's Attempt To Limit Gazprom's Use Of Opal Pipeline (Oct 13)
Company: Statoil more info
Operates 1 Offshore Rigs
 - Statoil May Build Onshore Terminal for Castberg Oil -Minister (Jan 16)
 - Canadian Offshore Oil Interest Grows As Pipeline Woes Sink Alberta Prices (Dec 20)
 - Sharp Fall In Applications For Norway's Arctic Oil Permits (Dec 05)
Company: Total S.A. more info
 - Total Starts Up Antwerp Refinery And Petrochem Complex After Upgrade (Nov 30)
 - Hoegh LNG: Pakistan LNG Import Project Consortium Folds (Nov 16)
 - France's Total Buys Engie's LNG Business For $1.5B (Nov 08)
Company: ConocoPhillips more info
Operates 12 Offshore Rigs
 - Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
 - ConocoPhillips Vows Financial Discipline As Aims To Boost Output (Nov 08)
 - ConocoPhillips' Profit Beats Estimates, But Budget Cut 10% (Oct 26)
Company: Chevron Corporation more info
 - CB&I, Chevron Lummus Global, Saudi Aramco Launch 'Crude-to-Chemical' JV (Jan 18)
 - Oil Producers Want New Hearing on Impact of Magellan Proposal (Jan 17)
 - Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)