Total proposes Gazprom to reconsider realization of Shtokman project with new technology

The French energy company Total proposed according to Russian gas giant Gazprom to reconsider the launch of the Shtokman gas project in the Barents Sea. The realization of the project was postponed indefinitely, but now a representative of Total is of the opinion that it could be possible to reconsider the huge project with new technological solutions, reports the news agency ITAR-TASS.

Michael Borrell, Total’s senior vice president for exploration and production for Continental Europe and Central Asia, presented this startling proposal on Monday at the World Petroleum Congress.

Gazprom owns 75 percent of the operator company Shtokman Development, while France’s Total holds 25 percent. Previously, Norwegian Statoil was also a co-owner of Shtokman Development with a share of 24 percent, which was taken over by Gazprom.

The Shtokman field is located in the Barents Sea off the coast of Murmansk region. Because of the risk of high waves, extreme cold, iceberg danger and great distance from the mainland, the implementation of the project would require an initial investment of 15 billion USD.

The former project partners Gazprom, Total and Statoil have used a billion or so to assess and prepare for the start of the project. Works to build up the infrastructure in Teriberka, where landing is the gas would take place, have been started several years ago. However, due to unresolved technical problems and high costs, it was decided to put the project on ice. Total has written off its investment of around USD 350 million in the project.

Gazprom and Total still continued with the survey of the field and evaluation of technical solutions, but could so far not find a profitable way to develop Shtokman. The joint company Shtokman Development AG is still in operation.

Source: ITAR-TASS, norge.russland.RU – Internettavisen