Today, within the official visit of the Norwegian Prime Minister Kjell Magne Bondevik to the Russian Federation, Alexey Miller, Gazprom’s Management Committee Chairman, Helge Lund, Statoil’s President & CEO and Eivind Reiten, Hydro’s President and CEO have sealed a Memorandum of understanding.
The Memorandum stipulates joint endeavors to discover hydrocarbon prospects in the Arctic, to develop technologies for the commercial operation of the Arctic offshore, look into the oil & gas extraction impact on the regional social & economic development and environment, exchange workforce, train specialists and develop internship programs.
The Memorandum will be put into life by a tripartite Joint Committee to be comprised of Gazprom, Statoil and Hydro’s representatives.
43.8%-owned by the state, its majority stockholder, Hydro is a large, highly competitive Norwegian company producing considerable amount of oil, gas and electricity. With major extraction capacities located on the Norwegian continental shelf, Hydro is also engaged in hydrocarbon production in Canada, the Mexican Gulf, Iran and Angola. The company’s 2004 turnover and net profit accounted for some EUR19 bln and over EUR1.5 bln, respectively.
Over 2004, Hydro’s natural gas deliveries from the Norwegian offshore to Europe totaled 8.8 bcm and are expected to jump to 15 bcm by 2008.
Hydro operates 13 oil and gas fields in the Norwegian North Sea, the Troll and Ormen Lange fields inclusive.
A 76.3%-state-owned vertically-integrated and multi-profile petroleum firm, Statoil is running business through 29 locations worldwide. The company counts on vast experience of operations in the Norwegian offshore and is the world’s third crude oil seller. Statoil is a major natural gas supplier to Europe.
Statoil is serving as operator of the Cove Point regasification terminal (2.4 bcm per annum), which is one of the 4 existing regasification terminals in the USA. The terminal is based in Maryland, US West Coast, between Washington DC and New York City. Said area is being regarded upon as the most promising US gas market. Statoil has entered into an agreement to modernize the terminal with the view of boosting its throughput. Upon upgrading completion due 2008, Statoil will exercise control over the 10 bcm/y regasification, storage and transmission Cove Point terminal.
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