StatoilHydro Joins Shtokman Partnership

Norwegian oil and gas explorer StatoilHydro has signed a frame agreement with Gazprom to become a partner in the first phase of Russia's massive Shtokman development.

The agreement includes responsibility for planning, financing and constructing infrastructure for installations, pipelines to shore and processing plants for both liquefied natural gas (LNG) and piped gas.

The implementation of the project is subject to a final investment decision in the second half of 2009.

The agreement gives StatoilHydro a 24 percent equity interest in Shtokman Development Company - Gazprom (51 percent) and France’s Total (25 percent) are the two other partners.

The Shtokman field, located in the Russian part of the Barents Sea, is the world's largest undeveloped offshore gas field with annual production estimated to be 23.7 bcm for the first phase.

By staff writer