The doubts about the prevailing realities of the timing of the Shtokman project (supply of gas in the pipeline in 2013 and the first shipment of LNG in 2014) have been dispelled in Murmansk on 12 February during a meeting of representative delegations «Shtokman Development AG» (SDAG) headed by the Chief Executive Officer of the Yuri Komarov company with the Governor of the Murmansk region Yuri Evdokimov.

Moreover, Yuri Komarov said that the global financial crisis not only will not affect this time frame but will also lower the costs of the project as a result of falling prices for metals, machinery and components.

From theory - to specific cases. Wait a little

- To avoid unforeseen situations in translating Shtokman project into action we seriously have to develop technological solutions and conduct exploration work, - said Yuri Komarov. - Now the world is raging a severe financial crisis, which led to the freezing of many projects but the company «Shtokman Development AG» does not intend to do so. We have abilities and the desire to translate the plans in life outlined in a previous as possible. The implementation of the project is of strategic importance for Russia and for foreign companies.

Yury Komarov said that serious steps to maximize the use of the capacity of Russian companies in this project including those based in the Murmansk region. Given the use of advanced foreign technologies to Russian companies have the opportunity to access them, which will stimulate the development of industrial production. But get the contracts will not be easy. It is necessary to win the tenders, providing high quality products, the price is lower than competitors and the equipment supply, goods and services exact time.

Deputy Executive Director «Shtokman Development AG» Herv? Mad? reminded to present people those figures describing the first phase of the Shtokman project. Each year will be produced about 23.7 billion m³ of gas during 25 years and 50% will go to ground pipeline Teriberka – Volhov. Also 50% subjected to liquefaction and sent in the form of 7.5 million tons of LNG to customers in European countries and North - American continent. 5% of the gas will remain for the Murmansk region. Already, Institute «Gazproekt» is elaborated plans gasification Murmansk region on the order of JSC «Gazprom».

The Summit, which included not only Murmansk region Government members but also the heads of major enterprises in the region, experts of the company «Shtokman Development AG» acquainted with the details of the project.

Marine mining complex will consist of three estuarine complex (bottom panels), size 35 x 20 x 10 meters on which the gushing equipment each unit weighs 60 tons and ensures safe operation of wells. With each wellhead complex, using the floating drilling rig 8 wells will drill the depth of 3000 meters. Underwater house and the device run diagnostics. Extracted gas will flow to the floating mining plant.

Originally considered two options for installing floating mining: SPAR and FPU. A final decision was in favor of FPU - floating mining installation vessels. At the giant building, a width of 50 and a length of 300 meters located manufacturing equipment, power plant and a residential block. From gas wells will be on floating mining installation in preparation for transportation to the underwater gas pipeline: Gas separation occurs, gas, water and drainage. Total expected to earn 70-million m3 gas per day.

Generally speaking, a tremendous amount of work will be done in land in the valley near the village of Bay Zavalishin Teriberka. In five years there is the world's largest LNG plant appear, storage facility for liquefied natural gas, export terminal, a zone of gas port, a residential area of 10 thousand people and administrative area. Suffice it to say that the drilling-blasting operations will be 23 million m3. The volume of excavation is 13 million m3. Only for these works will be used more than 700 heavy trucks and the entire fleet will number more than 1000 cars.

Technological line the first phase of LNG plant will consist of 160 000 tons of metal and 250 000 cubic meters of concrete. When mounted LNG plant will use technology modules. Providing electricity to shore facilities and the LNG plant will be implemented by an autonomous power plant with a capacity of 600-650 megawatts.

We are preparing to carry out feasibility studies and FEED project a master designer who became JSC «Giprospetsgaz» and the parent organization for the scientific support - «VNIIGAZ», which has developed a comprehensive method of settlement of the Arctic shelf.

Currently, «Gazprom» addressed the priorities for the establishment of marine mining complex for Shtokman project building in Vyborg two semi rigs to drill wells, the establishment of an efficient transport technology products in the two-phase state. They are including the development of technologies of gas on the platform, the optimization of composition and capacity of power complex.

Moreover, there is a legal registration LLC «Gazprom mining shelf», which will receive the entire offshore license «Gazprom». That LTD would do exploration and production, coordinating the work of the operator the first phase of field development «Shtokman Development» with activities for the second and third phases. LTD «Gazprom mining shelf» is engaged in the preparation and construction of liquefied natural gas.

Yury Komarov said the basic technology already completed and the company went to the stage of public inquiry project. The final investment decision will be adopted in 2010 and the real work begins on the production site.

Murmansk or Hammerfest

One of the major problems to be solved is the establishment of bases for the Shtokman project to meet the needs of not only the first but also his second and third phases. There will be drilling equipment, stored chemicals, cement, machinery for the preparation of drilling fluids, handling facilities and can transport cargo weighing up to 200 tons, warehouses, repair shops. The total area is 400 000 m². This magnitude is not accidental. It will be stored 95000 pipes, weighing 550 thousand tons. This database supplies must meet several requirements: to be able to receive and send cargo by sea, rail, roads, electricity supply to be secured and be able to deliver goods to Shtokman GKM no more than 30 hours. And that's not all. You must be able to promptly obtain permission for entry and exit from the port, customs clearance and compliance with immigration procedures for foreign professionals. Currently, there is a question of finding the site of the future location of the base supply. And it is not fact it is located in Murmansk.

During a presentation to participants, apparently not by chance, showed a similar base in Hammerfest, ready to work. Moreover, the site BarentsObserver.com posted the statement of the offshore part of the Shtokman project, a company «Shtokman Development AG» Thomas Bernd that he did not rule out the possibility of creating a time-phase construction of supply bases in Hammerfest and Kirkenes, which he said have better infrastructure than in Murmansk. Interestingly, as if a Russian company involved in the development of the Norwegian field «Snow White» and proposed to base supply for the project set up in Murmansk? And what for consideration of Norway, the residents of Hammerfest, and Norwegian companies? The answer is obvious. Russia however develop its (!!!) Shtokman field, which in its gas equivalent to all open gas on the Norwegian shelf and it is proposed to accept such a preposterous suggestion.

Such statements of officials of this level without the consent of the supervisors are not made. Can only guess who gave the «good» in the remark. Russia, of course, needs Norwegian technological developments and their experience. But we cannot forget about our national interests and companies, industrial enterprises and the Murmansk region. Here deployment of supplies would not be superfluous in terms of employment, attract investment and tax revenues.

Unfortunately, Yury Komarov said that Norway has a good start but its supplies base are recorded as extra option. Murmansk region, he said, for «Shtokman Development AG» is a priority. But very often «spare» options are becoming mainstream. It would come at this time.

After all, in the «a» bad for the Murmansk region variant supply bases in Hammerfest could be decent financial costs «Shtokman Development AG» to create from scratch such a base in the Kola Peninsula. To explain such a decision for financial reasons and the savings will be easy. The proposal by Norway to provide its gas transmission system for transporting Russian gas for export it cannot be taken into account. The desire to Norway understandable: its own gas reserves depleted and transport large amounts of Russian gas to Europe using their pipelines will provide a stable flow of funds for decades. If the «Gazprom» agreed Norway can «ask» of the counter service, namely, the use of supplies in Hammerfest. After all, it's hundreds of jobs, the loading capacity of the existing income tax assets to the local budget.

There seems no coincidence, in the struggle for the removal of Murmansk on the construction of the supply base here called the Regional Manager of Norwegian company «INTSOK» Vladimir Ryashin who said that «it is through the Archangel will supply the main equipment for Shtokman including those from Europe because Murmansk railway not designed for the required amount of materials and equipment». This is more than a strange statement. No one is against the participation of enterprises and the port of Arkhangelsk in the international mega-project. But why he so clumsy minimize the possibility of Murmansk, which in a different light was evaluated repeatedly visited the capital of the Kola polar region Russia's President Vladimir Putin and Dmitry Medvedev, Chairman of the Government of Russia Mikhail Kasyanov and Mikhail Fradkov, the leaders of many ministries. They are supported the development of the Murmansk transport hub, which has yet to open wider the gates of Russia in the Atlantic and become the basis for the development of the Arctic shelf. If talking about Arkhangelsk, its frozen shallow port is not the place where will be decided the strategic objective to harness the Shtokman GKM.

The doubts about the prevailing realities of the timing of the Shtokman project (supply of gas in the pipeline in 2013 and the first shipment of LNG in 2014) have been dispelled in Murmansk on 12 February during a meeting of representative delegations «Shtokman Development AG» (SDAG) headed by the Chief Executive Officer of the Yuri Komarov company with the Governor of the Murmansk region Yuri Evdokimov. Moreover, Yuri Komarov said that the global financial crisis not only will not affect this time frame but will also lower the costs of the project as a result of falling prices for metals, machinery and components.

Parish «Shtokman Development AG» and JSC «Gazprom» in Murmansk region could lead to an increase in industrial production and GDP by 2-3 times. The machine-building, ship building and complexes will have a second wind. And it should be fought.

Managers «Shtokman Development AG» already searching and compiling a database of potential contractors and suppliers. The base has included more than 250 Russian enterprises. In particular, companies of Murmansk region could be involved in the construction of facilities, conducting investigations, providing transportation services and supply of materials. Suppliers will be subject to strict requirements: the availability of expertise and qualified personnel, compliance with the requirements of the company on quality products and services, to ensure the safety and health personnel and the creditworthiness of delivery responsibility guarantee.

Yuri Komarov marked «Shtokman Development AG» is looking already half a year for foreign contractors who will be encouraged to cooperate with Russian companies. By 2010, company management will have the full tender package.

The enterprises of Murmansk region, several regions of Russia and foreign countries prepare to participate in competitions for the supply of equipment, goods and services «Shtokman Development AG». Non-profit organization «Association of Oil and Gas «Murmanshelf established on 19 April 2006 in Murmansk brings together more 170 enterprises and companies, including 30 foreign.

It will be multimillion-dollar orders, the long-term vision of work and employment providing of the people. In these circumstances, should never prevent the abuse of domestic companies and above all the Murmansk region. In awarding contracts for orders priority should be given to Russian companies.

At the last meeting in 2008 the Board of Directors of «Gazprom» was taken the right decision to approve the proposed Ministry of Economic Development of Russia revised the regulations on the procedure for placing orders for goods, services, works for the gas group and its subsidiaries, primarily in the competitive basis. Board of the task: to ensure the application of this decision, set preferences for suppliers of Russian goods when placing orders.

Now when you compare the price competition in the domestic and foreign (in particular the list) of the goods the latter will be increasing 15% the first factor. Given the changes in the supplier of foreign goods will be able to win the auction if the offer price will be not less than 15% below the price established by the employer. In addition, if an equal price preference for the bid will be given to the supplier of Russian goods.

We have to buy the necessary equipment and services from western companies of course but Russian enterprises should become the main suppliers. If Western countries want to cooperate they should sells technology to Russia and the Russians will produce the necessary equipment they can themselves. By the way, at the dawn of shelf development Norway was on that path itself.

And it possibly be refinery

Plans «Gazprom» on the Murmansk region are not limited to the construction of Teriberka LNG plant and port complex. The company is considering the possibility of refining in the Murmansk region in projects to develop the Shtokman and Prirazlomnoye deposits, said General Director of LLC "Sevmorneftegaz" ("Daughter" of Gazprom) Alexander Mandel.

According to him, the scheme provides for development of the oil for export to Rotterdam with the use of floating oil (PNH) "Belokamenka" owned Rosneft. "The first oil will go to export", - said A. Mandel. Currently, however, for the investment of the oil refinery (NPZ) in Teriberka rationale is developing. And the plant can be built in 5-7 years after the launch field. If the decision is made about its construction, "then all the oil goes to the plant."

Approximate plant power is estimated at 5 million tons per year. In addition to this for the refinery oil can be supplied from Prirazlomnoye (maximum output it will be 6.6 million tons per year) and the condensate from the Shtokman deposit (total of 600 thousand tons per year).

If the plant will be built, its production will focus on the Russian domestic market since the only requirement of Gazprom in the oil products in the region is estimated at 1.5 million tons per year. In addition, 4 million tons is needed of Murmansk and Arkhangelsk regions as well as the Republic of Komi.

At the present time "Sevmorneftegaz" revising the technical scheme development process to increase the number of wells with two trunks. This will improve the economic efficiency of the project. 2011 is considered as the time of launch Prirazlomnoye field.

To accelerate end of building of the top structures of a platform "Prirazlomnoye" "Sevmashprdpriyatiye" has involved the subcontractor - "Globalstroj-engineering".

Current year "Sevmorneftegaz" will master on preparation Prirazlomnoye more than 20 billion roubles.

Yuri Banko

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