Shale gas makes Statoil uncertain about Shtokman
Norwegian shareholder in the giant Shtokman gas project Statoil still sees challenges before making a final investment decision.
- Development of shale gas in the US gives a further development of the Shotkman project new challenges, said Head of Statoil in Russia Jan Helge Skogen to Dow Jones Newswires, according to e24.
According to Skogen the Shtokman project is an extremely large investment and a decision is becoming more difficult to make as shale gas production puts on speed:
- The gas market in Europe is challenging, and the main reason for this is the shale gas revolution in the US. It has had an enormous impact on the global gas and LNG industry, Skogen said.
This statement comes as the project owners are waiting for the necessary tax relieves from the Russian Government. Statoil has several times expressed impatience with the Russian Government’s lack of decision when it comes to fiscal relief for the Shotkman project in the form of discounted rates of mineral extraction tax and gas export duty.
The board of Gazprom-led Shtokman Development, in which Norway’s Statoil and France’s Total are junior partners, must meet before the end of the year to take the final decision on investments in the multibillion-dollar project, which would launch full-scale development of the 3.9 trillion cubic meter Barents Sea field.
Last week a Finance Ministry official said the tax regime for the Shtokman gas field is unlikely to be spelled out in time for a final investment decision. The State Duma adjourned for the Dec. 4 elections, meaning that no consideration of possible changes to the tax regime applying to the multibillion-dollar project is possible this year.
