Shtokman FPU contract by year-end

The contract for the Shtokman floating production unit is scheduled to be awarded by the end of this year, said Yuri Komarov, CEO, Shtokman Development AG, during his presentation at ONS on Wednesday, Aug. 27.

Offshore staff

STAVANGER, Norway -- The contract for the Shtokman floating production unit is scheduled to be awarded by the end of this year, said Yuri Komarov, CEO, Shtokman Development AG, during his presentation at ONS on Wednesday, Aug. 27.

The competitive tender includes a spar-type facility and a ship-shaped floating production unit. "Key to the selection is design of the platform's disconnectable turret," Komarov said. The disconnectable system is required to move the platform off location during the ice season.

Phase 1 of Shtokman development is under way, with FEED work expected to be completed next year.

Construction of the phase 1 facilities is scheduled to begin in 2010 with a price tag of at least $50 billion, according to Komarov. And about 6,000-8,000 people will be needed for the construction work, he said.

First gas is expected in 2013 at 11 bcm/d. First LNG is expected in 2014 at 7.5 MTA. Four phases total are scheduled for full field development, which will deliver 71.1 bcm/yr and 30 MTA of LNG over a 50-year period.

Other new facilities required for the phased development include subsea equipment, pipelines, and an onshore LNG plant.

"Shtokman will open a new frontier for oil and gas projects with the first major development in the Barents Sea to be followed with other arctic developments," Komarov said.

08/27/2008

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