GIANT BARENTS GAS FIELD FEASIBLE TO DEVELOP

An international study group says development of a giant gas field in the Soviet Barents Sea north of the Arctic Circle is feasible with today's technology. The group, made up of Norsk Hydro AS of Norway, Conoco Inc.'s Continental Overseas Inc., three Finnish companies-Neste Oy, Metra, and Imatran Voima Oyand the U.S.S.R. Ministry of Oil and Gas Industry, has started work on further studies that could lead to joint development of Shtokmanovskoye field.

April 22, 1991

2 min read

An international study group says development of a giant gas field in the Soviet Barents Sea north of the Arctic Circle is feasible with today's technology.

The group, made up of Norsk Hydro AS of Norway, Conoco Inc.'s Continental Overseas Inc., three Finnish companies-Neste Oy, Metra, and Imatran Voima Oyand the U.S.S.R. Ministry of Oil and Gas Industry, has started work on further studies that could lead to joint development of Shtokmanovskoye field.

Lying in 924 ft of water about 372 miles northeast of Murmansk, the field holds reserves estimated to range from 88 tcf to more than 100 tcf (see map, Aug. 6, 1990, p. 28). Site is south of the southern limit of pack ice.

One of the key elements of work scheduled this year is further appraisal of the field.

Four wells have been drilled, but Soviet rigs have not had enough capacity to test the wells at maximum flow rates. One or two appraisal wells will be drilled this summer using rigs moved in from the North Sea with capacity to test at maximum rates.

Group members also will be conducting talks with the Soviets on options for western participation in Shtokmanovskoye development.

Any development is likely to take place in two phases. The first, costing more than $7 billion, would require a deepwater drilling and production platform and a pipeline to Murmansk.

Production in this first phase would be about 2.4 bcfd. Most of this gas is likely to be sold to customers in Europe. The group plans to conduct more detailed studies of marketing prospects in Europe and the Soviet Union. It also will assess a number of options to transport the gas to the main European distribution network.

A second phase of the project could double the amount of gas produced in the field.