Gazprom lowers Shtokman budgets
Gazprom’s development model of the Shtokman project is 11 billion USD lower than the model preferred by project partner Total.
It has long been known that project partners Gazprom and Total prefer different development models for the huge gas project in the Barents Sea. Now the core of the disagreement has come to the surface.
In an interview with Gazprom’s company newspaper, the prominent Gazprom official Aleksandr Mandel confirms that his company wants to apply a model which is estimated to cost 11 billion USD less that the model preferred by Total. Mandel heads the Gazprom Dobycha Shelf, the subsidiary unit which formally owns the license to the Shtokman field.
According to Mandel, Gazprom wants to lay only one pipeline from the field to Teriberka, the project development hub on the coast of the Barents Sea. A reservoir ship for condensate is to be stationed at the field and smaller tankers bring the condensate to land. Total on the other hand want to lay two pipelines to Teriberka, one for gas and one for condensate. The latter solutions also includes the construction of a huge production ship which will do part of the gas processing operations.
According to newspaper Kommersant, the Gazprom-model will cost about 29 billion USD, while the model preferred by Total has an estimated cost of 40 billion USD.
The conflicting development solutions now strain relations between the project partners. The lack of agreement on the issue might also be one of the reasons why the project launch has been postponed with three years.
Read also: Shtokman postponed 3 years
Possibly, the diverging positions might also be one of the reasons why leader of the Shtokman Development Company, Yury Komarov, this spring announced his resignation. One of the likely candidates to take over the post is Aleksey Zagorovsky, the Deputy General Director of Gazprom Dobycha Shelf. That appointment will most probably strengthen the chances of the Gazprom-model.
At the same time, French partner Total continues to promote its positions. During his visit to Paris last week, Russian Prime Minister Vladimir Putin met with Total General Director Christophe de Margerie. In the meeting the French oilman stressed that “it is important that we keep to the scheduled dates and avoid any more delays” and that “it is possible that we need your help to put the heat on all the partners in the project”.
Read more news about the Shtokman project in BarentsObserver’s Shtokman section
