Gazprom expects to round off Shtokman consultations by fall - Miller
MOSCOW. July 13 (Interfax) - Gazprom expects to round off consultations on the configuration and terms for carrying out the Shtokman gas project by early fall, the company's CEO, Alexei Miller, told reporters.
"We are holding the final consultations about the configuration and terms for the Shtokman project and expect them to wrap up by early fall," Miller said, when asked about the current state of interaction between project participants.
The partners in Shtokman are currently in the process of selecting a new model for interaction.
In March, the Shtokman Development shareholders were again unable to make a final decision on the long-delayed project.
Since the shareholders could not reach the desired economic parameters for profitability, they decided to liquefy almost 100% of gas produced rather than half, and to change the business model for the project. The basic agreements were extended until 1 July, but as that deadline drew nearer reports emerged that the shareholders could change. Shtokman Development, owned 51% by Gazprom, 25% by Total and 24% by Statoil, will fund and build the infrastructure to bring the Shtokman gas to shore and to liquefy it in the project's first stage.
Shell has been named as an alternative foreign partner.
Sources told Interfax that Russia's leadership has set the task of agreeing on a new model of interaction for Shtokman's participants, as well as a new partner composition, by the end of July. Meanwhile, one of the sources said that Miller is planning to take a holiday on July 16-17.
Negotiations are being held with all potential partners in bilateral format.
Frame agreements with Total and Statoil lapsed on July 1. Shtokman Development shut its office in Paris at the end of June and employees at its Moscow office were told they might be laid off.
Gazprom, Total and Statoil signed the shareholder agreement to form Shtokman Development AG in February 2008. Since then the company has spent about $1.5 billion. A source at Gazprom told Interfax that this money would not be refunded to the foreign shareholders. Another source said there is a clause in the shareholder agreement under which the foreign shareholders' investment in the project will not be refunded. Representatives of the foreign shareholders said that the project was technical ready for implementation, only economic issues were left to be decided - they were asking the Russian government for tax breaks for Shtokman.
Gazprom, Total and Statoil signed the shareholder agreement to form Shtokman Development AG in February 2008.
The license to the field, with reserves of 3.9 trillion cubic meters of gas, is held by Gazprom subsidiary Gazprom Dobycha Shelf. Gazprom intended to implement the second and third phases independently.