October 14, 2008

Gazprom sets out Shtokman plans

It is reported that the Gazprom Management Committee has approved Shtokman progress with the "Investment Rationale for Comprehensive Development of the Shtokman Gas Condensate Field." The committee tasked the core business units with elaborating the project of the comprehensive development of the Shtokman gas condensate field in the aim of commissioning it in 2013.

Mr Alexey Miller chairman of the committee recently chaired a meeting dedicated to the execution of Phase 1 of the Shtokman field development where the members of the committee, heads of the company's core business units as well as Sevmorneftegaz were present.

The participants discussed major issues related to implementation of Phase 1 of the Shtokman field. Particularly, the meeting addressed issues on setting up a special-purpose company to manage engineering, financing, construction and exploitation of installations at Phase 1. The participants decided to establish the special purpose company no later than December 20th 2007. The company's management board also must be established during the same time period.

The core business units and Sevmorneftegaz were tasked to provide execution of the Shtokman project pursuant to the schedule, which provides synchronized start-up of gas production and supply via the pipeline as well as liquefied natural gas production.