Uchenna Izundu
International Editor
LONDON, Mar. 27 -- Shtokman Development Co. (SDC) has awarded several engineering contracts associated with Phase 1 development of Shtokman natural gas-condensate field in the Barents Sea.
Gas from Shtokman will be sent by pipeline to Europe in 2013, and LNG will be shipped to North America in 2014. The field holds 3,800 billion cu m of gas reserves and 37 million tons of condensate. The first phase of the field's development will result in production of 23.7 billion cu m/year of gas.
SDC estimates that the first phase—one of four planned stages—will cost $15 billion. It hopes to make a final investment decision by the end of 2009.
Engineering awards
French engineering firm Doris was awarded a front-end engineering and design (FEED) contract for the subsea production system and offshore technological platform.
JP Kenny will perform FEED work on the 600 km subsea pipeline to shore. SDC also appointed two Russian engineering companies, Rubin and Giprospetsgaz, to work with their European counterparts.
Technip SA received the FEED contract to design, by mid-2009, the onshore facilities, which will be sited adjacent to Teriberka, 120 km east of Murmansk, Russia. Facilities will include a 7.5 million tonne/year liquefaction train and LNG export facility, and a gas treatment plant and pipeline for delivering natural gas to Russian and European markets.
Technip also received two additional contracts; one to establish a set of project standards and the second to assist Shtokman with the definition of site preparation works.
SDC shareholders are wholly owned OAO Gazprom subsidiary Sevmorneftegaz 51%, Total SA 25%, and StatoilHydro 24%.
Contact Uchenna Izundu at [email protected].
