Gazprom and Statoil agree on exploration
Posted 08.06.2009 09:29:18 by Patrick Mcloughlin
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The CEO of Russian gas monopoly Gazprom Alexei Miller and StatoilHydro's CEO Helge Lund have signed a Memorandum of Understanding in St Petersburg, involving co-operation in exploration and northern region production, Statoil announced.

Gazprom owns 51% of the massive Shtokman gas field in the remote Barents Sea, but Statoil has 24% in the company which will develop the gas field, while France's Total has the remainder in one of the biggest projects of its kind in the world.

The document, signed on the sidelines of an economic conference in the Russian city, envisages that both companies jointly engage in geological exploration, development and production of hydrocarbon resources in northern regions, according to a Statoil statement.

The memorandum stipulates that the parties will co-operate in northern regions of Russia and Norway to discover and develop hydrocarbon fields, as well as to design technologies for exploration, production and transportation of corresponding resources.

Focus on Shtokman

The signed document is valid for three years and will replace the 2005 Memorandum of Understanding between Gazprom, Statoil and Hydro.

"The partnership between Gazprom and StatoilHydro is based on long-term experience and advanced technologies possessed by our companies that are capable of guaranteeing success to any of our projects," Alexei Miller said.

Miller said the development of the biggest of the projects – the Shtokman field – would become a "starting point" for the development of Arctic hydrocarbon reserves.

It would be a catalyst for the design and adaptation of technologies, which would help the companies to operate efficiently in harsh northern climatic conditions.

"Rich offshore resources of the Arctic as well as unique experience of Gazprom in implementation of major energy projects open dazzling possibilities for further development of our large-scale partnership," the CEO added.

Statoil's Lund said the signing of a new memorandum showed the continuity and long-term relations between StatoilHydro and Gazprom.

"Norway and Russia are strategic partners in the North, sharing opportunities and responsibilities in the Arctic region," Helge Lund said.

"StatoilHydro has been developing offshore fields in harsh conditions for 40 years.

We possess efficient technologies and valuable project execution experience which we are prepared to share and further develop in cooperation with our Russian partners," he added.

Statoil was looking forward to further co-operation with Gazprom, Lund said.

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