Moderated by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, a meeting dedicated to the implementation of the first phase of the Shtokman field development was held today at the Company’s Headquarters.

Taking part in the meeting were Vasily Podyuk, Head of the Gas, Gas Condensate and Oil Production Department, heads and specialists from the Gazprom Administration relevant subdivisions, as well as Sevmorneftegaz, VNIIGAZ, Giprospetsgaz and Shtokman Development AG.

The meeting participants discussed the key issues surrounding the implementation of the first phase of the Shtokman field development. Particular attention was paid to the proposed technical solutions and the layout of the port and transportation complex infrastructure near Teriberka. Additionally, the meeting addressed the implementation of the second and third phases of the field development.

Based on the meeting results the Gazprom relevant subdivisions and subsidiary companies were entrusted with the appropriate tasks.

Background:

The Shtokman field is situated in the central region of the Russian sector of the Barents Sea.

The deposit’s C1+C2 reserves account for 3.8 tcm of gas and around 37 mln tons of gas condensate.

The Shtokman gas and condensate field development project is of strategic for Gazprom. The field will become a resource base for deliveries of Russian gas – both pipeline and LNG – to markets of the Atlantic basin.

Sevmorneftegas, a wholly owned subsidiary of Gazprom, holds gas and gas condensate exploration and production license.

Gazprom determined Total (France) and StatoilHydro (Norway) as partners to execute the Shtokman project.

In February 2008 Gazprom, Total and StatoilHydro signed the Shareholder Agreement on establishing Shtokman Development AG, a special-purpose company to implement the engineering, development, construction, financing, and operation of the first phase facilities intended for the Shtokman field development.

The special-purpose company will own the infrastructure of the first phase of the Shtokman field for 25 years, starting from the field commissioning date.

In July 2008 the Vyborg Shipbuilding Plant launched the construction of the first of two semi-submersible drilling rigs for drilling production wells in the Shtokman field.

Designed for operation in severe climate conditions, the platforms can resist low temperature and the waves up to 32 m high, perform exploratory and production drilling of gas and oil wells reaching 7,500 m at water depth of 70-500 m.

The first semi-submersible drilling rigs are due in the fourth quarter of 2010, the second – in the first quarter of 2011.