Management of Shtokman Development AG and the Association of Oil and Gas Equipment Producers has held a meeting - Oil & Gas News - Russian Oil & Gas Equipment and Services

Today, Yury Komarov, CEO of Shtokman Development AG met with Alexander Romanikhin, President of the Association of Oil and Gas Equipment Producers. The meeting was attended by Hervé Madeo, technical director of Shtokman Development AG, and Garry Oganov, VNIIBT Director. The Parties had a comprehensive exchange of views on expanding the participation of Russian companies in the Shtokman Project. Y.Komarov emphasized that the company is focused on cooperating with Russian companies and on full use of production and scientific - technological potential of local industry. Head of Shtokman Development AG adduced examples of changes in tender requirements, so that local companies could participate in it.

A. Romanikhin offered to create a joint working group, consisting of technical specialists from Shtokman Development AG and the Association of Oil and Gas Equipment Producers, and also to review an option of consortium that would consist of competitive Russian companies.

On May 15, Shtokman Development AG and the Association of the Oil and Gas Producers will hold the workshop “Presentation of the first phase of the Shtokman gas and condensate field development project. Requirements to suppliers and tender procedure”. The meeting will review the possibility of local companies to take part in implementation of large investment project.

The meeting starts at 10 o’clock in Moscow, 3 Malaya Pirogovskaya str., Shtokman Development AG. Tel: (495) 514-4468, 514-5856 – Helen Gennadievna.

The Yuzhno-Russkoye field is an example of efficient Russian-German partnership aimed at providing stable energy security in Europe. The project execution based on asset swap and entire chain development from production to final consumer will strengthen Gazprom positions as a global player on the energy market.

The Yuzhno-Russkoye gas condensate field is located in the Krasnoselkupsky region of the Yamal-Nenets Autonomous Okrug.

The Yuzhno-Russkoye gas condensate field reserves are as follows: 825.2 bcm of gas ABC1 category, 208.9 bcm of gas C2 category, 5.7 mln tons of oil.

Severneftegazprom, is the liсense owner for hydrocarbon exploration, development at the field.

The Agreement on Share Swap between Gazprom and BASF AG was signed in 2007. According to the Agreement, Gazprom increased its stake in the authorized capital of Wingas GmbH up to 50 per cent minus one share. In its turn, BASF AG acquired a 25 per cent stake minus one voting share and one share without voting rights, which is an equivalent to a 10 per cent stake in the project’s economy. During the deal closing specified by the Agreement, Gazprom Group will receive a 49 per cent stake in Wintershall AG authorized capital. Wintershall AG holds licenses to develop and produce hydrocarbons in the frames of the concessional agreements in Libya).

Additionally, In June 2006 Gazprom and E.ON AG signed a Framework Agreement on Asset Swap in gas production, marketing and electric power industry. In the frames of the Agreement E.ON will participate in the project of developing the Yuzhno-Russkoye field and Gazprom will get stakes in E.ON assets in Western and Central Europe. As of December 2007, Gazprom and E.ON achieved significant progress in business talks on asset swap.

On December 17, 2007 Gazprom and BASF signed a certificate on asset swap deal closing in the sector of gas production and marketing.

In the presence of Dmitry Medvedev, First Deputy Chairman of the Russian Federation, Chairman of the Gazprom Board of Directors and Frank-Walter Steinmeier, Minister of Foreign Affairs of Germany, the Gazprom Headquarters has hosted a ceremony dedicated to the commercial launch of the Yuzhno-Russkoye oil and gas condensate field.

As of December 2007, 26 gas wells are under operation producing 15 mcm of gas per day.

Geological survey at the field continues. Work is underway to increase the number of existing wells and to develop infrastructure. The field start-up facility was brought online in October 2007.