Shtokman group 'to be wound up'
Russia’s Gazprom is set to wind up the consortium created to operate the giant Shtokman gas field in the Barents Sea and is preparing to sign a deal to bring onboard Shell as a partner in the project, according to reports.
Russian President Vladimir Putin last month urged partners in the Shtokman Development operating company to make a final investment decision on the first phase of the challenging Arctic project, which has been stalled for years over commercial concerns.
Consortium leader Gazprom will dismiss the staff of Shtokman Development and could create a new company to operate the project, Russian financial daily Vedomosti, citing sources, reported on Tuesday.
A new deal will be signed at the St Petersburg Economic Forum this week, it said, adding Anglo-Dutch Shell was seeking a one-quarter stake and was likely to replace one of the two existing foreign investors - French major Total or Norwegian player Statoil.
Gazprom has a controlling stake of 51% in Shtokman, with Statoil on 24% and Total on 25%.
Sources told Reuters last month that Shell could join Shtokman in an attempt to inject new life into the venture, while another source said the future participation of Statoil was in doubt.
The partners are now looking to develop Shtokman as a full liquefied natural gas project, eliminating pipeline exports, as low gas prices in the US and the European debt crisis have hit its market prospects.
The consortium’s original agreement for phase one is set to expire on 1 July and Gazprom’s executive chairman Alexei Miller has said it will not be extended.
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