Shtokman field

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Shtokman field
Region: Barents Sea
Country: Russia
Offshore/Onshore: offshore
Operators: Shtokman Development AG
Partners: Gazprom, Total, StatoilHydro
Shtokman field.gif
Field History
Discovery: 1988
Start of production: 2015
Production
Estimated GIIP (Bcf): 134.178

The Shtokman field (also Stockman field; Russian: Штокмановское месторождение), one of the world's largest natural gas fields, lies in the central part of Russian sector of the Barents Sea, 600 kilometres (370 mi) north of Kola Peninsula. Its reserves are estimated at 3.8 trillion cubic meters of natural gas and more than 37 million tons of gas condensate.[1]

Contents

[edit] History

The Shtokman field was discovered in 1988. It was named after the Soviet geophysicist Vladimir Shtokman (Russian: Владимир Штокман), a descendant of German emigrants, whose name were originally spelled Stockmann.

In the early 1990s, Gazprom started talks with a group of five Western companies to participate in the field's development. In 1992, the foreign consortium was pushed out by the Rosshelf consortium, a Gazprom subsidiary that comprised 19 Russian companies. in August 1995, Gazprom and Rosshelf signed a letter of intent with Norsk Hydro of Norway, Conoco Inc. of the United States, Neste Oy of Finland, and Total S.A. of France to evaluate the possible joint development of Shtokman field.[2][3]

In January 1996, a project of a large floating liquefaction plant was designed, but this plan was abounded and in March 2000, Rosshelf began developing plans for production and construction of a natural gas pipeline from the field via Murmansk to Vyborg.[2] In 2001, Gazprom announced its intention to develop the gas field together with Rosneft. In 2002, the license for the field development and recovery was transferred from Rosshelf to Sevmorneftegas.[3]

On 20 June 2005, Russia and Norway signed a number of agreements related to development of Shtokman field. On 28 June 2005 Russia signed a memorandum with France. In August 2005, Gazprom received bids from ConocoPhillips, ExxonMobil, Norsk Hydro, Statoil, Mitsui, Sumitomo Corporation, Royal Dutch Shell, Chevron Corporation, and Total to develop the field.[2] In September 2005, Gazprom selected five companies - Statoil, Norsk Hydro, Total, Chevron and ConocoPhillips - as finalists in a search for partners to develop the field, but in October 2006 decided to reject all potential partners.[4][5]

On 13 July 2007, Gazprom and French energy company Total signed a framework agreement to organize the design, financing, construction and operation of the Shtokman phase one infrastructure.[6][7] On 25 October 2007, similar contract was signed between Gazprom and StatoilHydro.[8] The consortium of three companies, Shtokman Development AG, was established on 21 February 2008 in Zug, Switzerland.[9]

[edit] Development

The field so far was not developed owing to extreme Arctic conditions and the depth of the sea varying from 320 to 340 metres (1,050 to 1,120 ft).[10] In September 2006, Gazprom completed drilling of appraisal well No. 7 in the field.[10] Russian scientists have warned that the Shtokman's development may face problems as global warming unleashes vast icebergs into the Arctic.[11] The Shtokman Development Company plans to address this challenge by using floating removable platforms, which can be moved around in case of emergency situations.[12]

Originally it was planned to ship Shtokman's gas to the United States as liquid natural gas (LNG). Later it was indicated by Gazprom that the majority of produced natural gas would be sold to Europe via the planned Nord Stream pipeline.[13][14] For this purpose, the pipeline from the Shtokman field to the Murmansk Oblast and further via Kola peninsula to Volkhov in the Leningrad Oblast will be built.[15] The LNG plant will be laid in by the village of Teriberka, about 100 kilometres (62 mi) north-east of Murmansk.[15][16][14] The production is expected to start in 2015.[17] However, according to Christophe de Margerie, the CEO of Total, "Shtokman gasfield would be uneconomic at today's [October 2009] gas prices".[18]

[edit] Technical features

At the initial stage the project is expected to produce 22.5 billion cubic meter (bcm) of natural gas and 205,000 tons of gas condensate annually. Later the production is expected to increase up to 70 bcm of natural gas and 0.6 million tonnes of gas condensate.[10] All extraction facilities will probably be located under water. The development costs are estimated at US$15 billion to US$20 billion, although according to the estimate by Alexander Medvedev, deputy chairman of Gazprom’s management committee, the field's development costs will be only US$12 billion.[19]

The front-end engineering and design (FEED) is divided between three companies. The onshore transportation and technological complex, including an LNG plant, will be prepared by Technip.[20] DORIS Engineering will prepare the subsea production system and the offshore technological platform. JP Kenny, a subsidiary of Wood Group, will design together with Rubin Design Bureau and Giprospetsgaz, a subsidiary of Gazprom, the 600 kilometres (370 mi) long 44 inches (1,120 mm) subsea pipeline from the Shtokman field to south of Murmansk.[21][22]

[edit] Project company

The license to explore for and produce gas and condensate on the Shtokman field is owned by Russian company Sevmorneftegaz, a wholly-owned subsidiary of Gazprom. Sevmorneftegaz is a sole customer for the design and construction of the field infrastructure, including a production complex, a pipeline network and an LNG plant, and has all marketing rights for hydrocarbons of the Shtokman field.[23][24][6] Shtokman Development AG bears all financial, geological and technical risks related to the production activities.[9] Gazprom owns 51% of shares in Shtokman Development, while Total has 25% and StatoilHydro 24% of shares.[8][25][26] Head of the company is Yuri Komarov.[27] Shtokman Development will own infrastructure for 25 years from field commissioning. Upon completion of phase one, Total and StatoilHydro will transfer their shares in Shtokman Development AG to Gazprom.[6]

[edit] Nuclear controversy

Norwegian daily Aftenposten reported on 23 November 2007, that the Shtokman development would be nuclear powered by using a floating nuclear power plant. The plan was criticized by the environmental group Bellona.[28] StatoilHydro has denied that nuclear energy would be used in the first phase of Shtokman's development.[29]

[edit] References

  1. ^ "Russia's Gazprom ups Shtokman reserves to 3.8 tcm". Reuters. 2007-11-15. http://www.reuters.com/article/companyNewsAndPR/idUSL1589543420071115. Retrieved 2008-01-06. 
  2. ^ a b c "Investment risky in Russia as politics affects profits" (PDF). Oil & Gas Journal. 2007-07-16. http://fmso.leavenworth.army.mil/documents/Investment-in-Russia.pdf. Retrieved 2009-01-31. 
  3. ^ a b Nadejda Makarova Victor (January 2008) (PDF). Gazprom: Gas Giant Under Strain. Working Paper #71. Stanford University. http://pesd.stanford.edu/publications/gazprom_gas_giant_under_strain/. Retrieved 2009-01-31. 
  4. ^ Gazprom (2005-09-16). "Gazprom Decides on Short-list of Companies – Poptential Partners in Shtokman Gas Condensate Field Development". Press release. http://www.gazprom.ru/eng/news/2005/09/17938.shtml. Retrieved 2009-01-31. 
  5. ^ "Gazprom Rejects Foreign Partners for Shtokman". Rigzone. 2006-10-09. http://www.rigzone.com/news/article.asp?a_id=36922. Retrieved 2009-01-31. 
  6. ^ a b c "Gazprom and Total sign a Framework Agreement For Cooperation in the First Phase of Shtokman Development". OilVoice. 2007-07-13. http://www.oilvoice.com/Gazprom_and_Total_sign_a_Framework_Agreement_For_Cooperation/10154.htm. Retrieved 2007-07-18. 
  7. ^ "Total signs on Shtokman dotted line". Upstream online. 2007-07-13. http://www.upstreamonline.com/incoming/article137232.ece. Retrieved 2007-07-13. 
  8. ^ a b Gazprom (2007-10-25). "Gazprom and StatoilHydro sign agreement on main condition for cooperation in phase 1 of Shtokman field development". Press release. http://www.gazprom.com/eng/news/2007/10/25719.shtmll. Retrieved 2007-10-26. 
  9. ^ a b "Gazprom confirms Shtokman LNG export start in 2014". Reuters. 2008-02-21. http://uk.reuters.com/article/oilRpt/idUKL2182220920080221. Retrieved 2008-02-21. 
  10. ^ a b c "Shtokman project". Gazprom. http://www.gazprom.com/eng/articles/article21712.shtml. Retrieved 2007-07-18. 
  11. ^ "'Iceberg threat' looms over Shtokman". Upstream online. 2007-04-27. http://www.upstreamonline.com/incoming/article132282.ece. Retrieved 2007-10-26. 
  12. ^ "Floating removable platforms for Shtokman field". Barents Observer. 2008-01-31. http://www.barentsobserver.com/floating-removable-platforms-for-shtokman-field.4454290-16149.html. Retrieved 2008-03-15. 
  13. ^ "Russia prepares for LNG export from Murmansk". Barents Observer. 2005-12-14. http://www.barentsobserver.com/index.php?id=290893&cat=16149&xforceredir=1&noredir=1. Retrieved 2007-10-26. 
  14. ^ a b Jorn Madslien (2006-10-09). "Shock as Russia goes solo on gas field". BBC New. http://news.bbc.co.uk/1/hi/business/6035811.stm1. Retrieved 2007-10-26. 
  15. ^ a b "Scientists oppose projected Shtokman pipeline". Barents Observer. 2006-09-13. http://www.barentsobserver.com/index.php?id=348732&cat=16176&xforceredir=1&noredir=1. Retrieved 2007-10-26. 
  16. ^ "Gazprom changed site for planned Shtokman LNG plant". Barents Observer. 2006-08-14. http://www.barentsobserver.com/index.php?id=527709&cat=16149&xforceredir=1&noredir=1. Retrieved 2007-08-18. 
  17. ^ Edward McAllister, Robert Campbell (2009-10-08). "Gazprom wants 10 pct of US natgas market in 5 yrs". Reuters. http://www.reuters.com/article/marketsNews/idUSN0852502720091008?sp=true. Retrieved 2009-10-10. 
  18. ^ Watson, N. J. (2009-10-09). "Total says Shtokman uneconomic at today's gas prices". Petroleum Economist. http://www.petroleum-economist.com/default.asp?page=14&PubID=46&ISS=25487&SID=722881. Retrieved 2009-10-10. 
  19. ^ "Shtokman costs cut to US $12 Bn.". Oil and gas net. 2007-11-15. http://www.oil-and-gas.net/index.php?page_id=13091. Retrieved 2007-11-24. 
  20. ^ "Technip 'tucks in to Shtokman FEED'". Upstream Online. 2008-03-14. http://www.upstreamonline.com/live/article150559.ece. Retrieved 2008-03-14. 
  21. ^ "Trio set to feast on Shtokman FEED". Upstream Online. 2008-03-18. http://www.upstreamonline.com/live/article150844.ece. Retrieved 2008-04-20. 
  22. ^ "JP Kenny has Shtokman gig in the bag". Upstream Online. 2008-03-25. http://www.upstreamonline.com/live/article151103.ece. Retrieved 2008-04-20. 
  23. ^ "Gazprom paid 1,7 billion USD for control in the Barents Sea". Barentsinfo. 2005-08-08. http://www.barentsinfo.org/?newsid=5563&deptid=13875&showmodul=20&languageid=4&news=1. Retrieved 2007-07-18. 
  24. ^ "Gazprom Sub and Hydro Begin Drilling Shtokman Field Well". OilVoice. 2006-07-25. http://www.oilvoice.com/Gazprom_Sub_and_Hydro_Begin_Drilling_Shtokman_Field_Well_/6929.htm. Retrieved 2007-07-18. 
  25. ^ Gazprom (2007-07-12). "Gazprom chooses French Total as partner for initial phase of Shtokman field development". Press release. http://www.gazprom.com/eng/news/2007/07/24558.shtml. Retrieved 2007-07-12. 
  26. ^ "The Kremlin-controlled gas monopoly has chosen France's Total as its partner in the giant Shtokman gas field". The Times. 2007-07-12. http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article2064457.ece. Retrieved 2007-07-12. 
  27. ^ "Shtokman start-up hinges on credit". Upstream Online. 2008-12-08. http://www.upstreamonline.com/live/article167902.ece. Retrieved 2007-11-24. 
  28. ^ "Green fury at Shtokman nuke plans". Upstream Online. 2007-11-23. http://www.upstreamonline.com/live/article144833.ece. Retrieved 2007-11-24. 
  29. ^ "No nuclear energy for Shtokman". Barents Observer. 2009-09-16. http://www.barentsobserver.com/no-nuclear-energy-for-shtokman.4631453-16178.html. Retrieved 2009-10-09. 

[edit] External links

Retrieved from "http://en.wikipedia.org/wiki/Shtokman_field"