Gazprom lists major investments

has budgeted $57 billion for project work over the next five to six years.

Gurdip Singh
Special Correspondent

KUALA LUMPUR, Malaysia -- Gazprom has budgeted $57 billion for project work over the next five to six years. Alexander Medvedev, Gazprom deputy chairman, discussed the company's plans at the 12th Asia Oil & Gas Conference in Kuala Lumpur, Malaysia, on June 12.

According to Medvedev, the main investment will include $40-billion for the onshore Bovanenkovo field on the Yamal peninsula. The second big investment is the $12-billion development of the Shtockman field in the Russian sector of the Barents Sea. Shtockman lies 550 km (341.7 mi) off the Kola Peninsula in 330 m (1,082.6 ft) water depth.

Medvedev said the 3.7-tcf reserve field is scheduled to start up by 2013, with peak exports of 94 bcm/yr going to Atlantic markets. A feasibility study on the project has been completed, he said.

Among other major projects, Gazprom is working on the 1,210-km (751.8-mi) seabed section of the pipeline that will transport Russian gas to Europe. The Nord Stream pipeline project is being designed to export 55 bcm/yr and is expected to cost €5 billion ($6.7 billion).

The Sakhalin 2 LNG project is nearing completion with startup planned for next year, Medvedev said. Gazprom is also working on the Baltic LNG project, which is expected to cost $4-$5 billion when it reaches completion in 2012.

Gazprom, he said, was working on various financing arrangements, including project financing, debts and equity participations.

6/12/2007

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