Shtokman field
   HOME

TheInfoList



OR:

The Shtokman field (also ''Stockman field''; russian: Штокмановское месторождение), one of the world's largest
natural gas field A petroleum reservoir or oil and gas reservoir is a subsurface accumulation of hydrocarbons contained in porous or fractured rock formations. Such reservoirs form when kerogen (ancient plant matter) is created in surrounding rock by the presence ...
s, lies in the northwestern part of the South Barents BasinLindquist, Sandra J
"South and North Barents Triassic-Jurassic Total Petroleum System of the Russian Offshore Arctic"
USGS Open File Report 99-50N, United States Geological Survey
in the
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
n sector of the
Barents Sea The Barents Sea ( , also ; no, Barentshavet, ; russian: Баренцево море, Barentsevo More) is a marginal sea of the Arctic Ocean, located off the northern coasts of Norway and Russia and divided between Norwegian and Russian terr ...
, north of
Kola Peninsula The Kola Peninsula (russian: Кольский полуостров, Kolsky poluostrov; sjd, Куэлнэгк нёа̄ррк) is a peninsula in the extreme northwest of Russia, and one of the largest peninsulas of Europe. Constituting the bulk ...
. Its reserves are estimated at of
natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbon d ...
and more than 37 million tons of
gas condensate Natural-gas condensate, also called natural gas liquids, is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields. Some gas species within the raw natur ...
.


History

The Shtokman field was discovered in 1988. It was named after the Soviet geophysicist Vladimir Shtokman (russian: Владимир Штокман), a descendant of German emigrants, whose name was originally spelled ''
Stockmann Stockmann plc is a Finnish retailer established in 1862. Stockmann's eight company-owned department stores are in Finland (six), Estonia (one), and Latvia (one). There also was an additional nine Stockmann-branded department stores in Russia o ...
''. In the early 1990s, Gazprom started talks with a group of five Western companies to participate in the field's development. In 1992, the foreign consortium was pushed out by the Rosshelf consortium, a Gazprom subsidiary that comprised 19 Russian companies. in August 1995, Gazprom and Rosshelf signed a letter of intent with
Norsk Hydro Norsk Hydro ASA (often referred to as just ''Hydro'') is a Norwegian aluminium and renewable energy company, headquartered in Oslo. It is one of the largest aluminium companies worldwide. It has operations in some 50 countries around the world a ...
of Norway,
Conoco Inc. Conoco Inc. ( ) was an American oil and gas company that operated from 1875 until 2002, when it merged with Phillips Petroleum to form ConocoPhillips. Founded by Isaac Elder Blake in 1875 as the "Continental Oil and Transportation Company". Curr ...
of the United States,
Neste Oy Neste Oyj (international name: Neste Corporation; former names Neste Oil Corporation and Fortum Oil and Gas Oy) is an oil refining and marketing company located in Espoo, Finland. It produces, refines and markets oil products, provides engi ...
of Finland, and
TotalEnergies TotalEnergies SE is a French multinational integrated energy and petroleum company founded in 1924 and one of the seven supermajor oil companies. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and ...
of France to evaluate the possible joint development of Shtokman field. In January 1996, a project of a large floating liquefaction plant was designed, but this plan was abandoned and in March 2000, Rosshelf began developing plans for production and construction of a natural gas pipeline from the field via Murmansk to Vyborg. In 2001, Gazprom announced its intention to develop the gas field together with
Rosneft PJSC Rosneft Oil Company ( stylized as ROSNEFT) is a Russian integrated energy company headquartered in Moscow. Rosneft specializes in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petro ...
. In 2002, the license for the field development and recovery was transferred from Rosshelf to Sevmorneftegas. On 20 June 2005, Russia and Norway signed a number of agreements related to development of Shtokman field. On 28 June 2005 Russia signed a memorandum with France. In August 2005, Gazprom received bids from
ConocoPhillips ConocoPhillips Company is an American multinational corporation engaged in hydrocarbon exploration and production. It is based in the Energy Corridor district of Houston, Texas. The company has operations in 15 countries and has production in ...
,
ExxonMobil ExxonMobil Corporation (commonly shortened to Exxon) is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller's Standard Oil, and was formed on November 3 ...
, Norsk Hydro,
Statoil Equinor ASA (formerly Statoil and StatoilHydro) is a Norwegian state-owned multinational energy company headquartered in Stavanger. It is primarily a petroleum company, operating in 36 countries with additional investments in renewable energy. ...
,
Mitsui is one of the largest ''keiretsu'' in Japan and one of the largest corporate groups in the world. The major companies of the group include Mitsui & Co. ( general trading company), Sumitomo Mitsui Banking Corporation, Nippon Paper Industries ...
,
Sumitomo Corporation is one of the largest worldwide ''sogo shosha'' general trading companies, and is a diversified corporation. The company was incorporated in 1919 and is a member company of the Sumitomo Group. It is listed on three Japanese stock exchanges ...
,
Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New ...
,
Chevron Corporation Chevron Corporation is an American multinational energy corporation. The second-largest direct descendant of Standard Oil, and originally known as the Standard Oil Company of California (shortened to Socal or CalSo), it is headquartered in S ...
, and TotalEnergies to develop the field. In September 2005, Gazprom selected five companies—Statoil, Norsk Hydro, TotalEnergies, Chevron and ConocoPhillips—as finalists in a search for partners to develop the field, but in October 2006 decided to reject all potential partners. On 13 July 2007, Gazprom and French energy company TotalEnergies signed a framework agreement to organize the design, financing, construction and operation of the Shtokman phase one infrastructure. On 25 October 2007, similar contract was signed between Gazprom and StatoilHydro (later Statoil, now Equinor). The consortium of three companies, Shtokman Development AG, was established on 21 February 2008 in Zug,
Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
. Due to the global LNG oversupply and the United States
shale gas Shale gas is an unconventional natural gas that is found trapped within shale formations. Since the 1990s a combination of horizontal drilling and hydraulic fracturing has made large volumes of shale gas more economical to produce, and some ...
, the shareholders of the project decided in 2010 to postpone it for 3 years. Based on this, the pipeline gas production might start in 2016 and LNG production in 2017. The shareholders agreement expired on 30 June 2012 without development started. Statoil wrote off its investment into the project and handed shares back to Gazprom. In August 2012, Gazprom put the project on hold with a final investment decision on the first phase postponed until at least 2014, citing high costs and low gas prices. However, the company confirmed being in talks with foreign partners to find a new business model for the project. There are speculations that
Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New ...
may become a project partner. The Shtokman project was postponed indefinitely in May 2019, and Gazprom closed down the Shtokman Development AG.


Development

The field so far was not developed owing to extreme Arctic conditions and the depth of the sea varying from . In September 2006, Gazprom completed drilling of appraisal well No. 7 in the field. Russian scientists have warned that the Shtokman's development may face problems as global warming unleashes vast icebergs into the Arctic. The Shtokman Development Company plans to address this challenge by using floating removable platforms, which can be moved around in case of emergency situations. Originally it was planned to ship Shtokman's gas to the United States as liquid natural gas (LNG). Later it was indicated by Gazprom that the majority of produced natural gas would be sold to Europe via the planned
Nord Stream 2 Nord Stream 2 (German-English mixed expression; german: Nord and en, Stream 2, literally 'North Stream2'; russian: Северный поток — 2) is a natural gas pipeline from Russia to Germany running through the Baltic Sea, financed by ...
pipeline. For this purpose, the pipeline from the Shtokman field to the
Murmansk Oblast Murmansk Oblast (russian: Му́рманская о́бласть, p=ˈmurmənskəjə ˈobləsʲtʲ, r=Murmanskaya oblast, ''Murmanskaya oblast''; Kildin Sami: Мурман е̄ммьне, ''Murman jemm'ne'') is a federal subject (an oblast) o ...
and further via
Kola peninsula The Kola Peninsula (russian: Кольский полуостров, Kolsky poluostrov; sjd, Куэлнэгк нёа̄ррк) is a peninsula in the extreme northwest of Russia, and one of the largest peninsulas of Europe. Constituting the bulk ...
to
Volkhov Volkhov (russian: Во́лхов) is an industrial town and the administrative center of Volkhovsky District in Leningrad Oblast, Russia, located on the river Volkhov east of St. Petersburg. Population: It was previously known as ''Zvan ...
in the
Leningrad Oblast Leningrad Oblast ( rus, Ленинградская область, Leningradskaya oblast’, lʲɪnʲɪnˈgratskəjə ˈobləsʲtʲ, , ) is a federal subject of Russia (an oblast). It was established on 1 August 1927, although it was not until 1 ...
will be built. The LNG plant will be laid in by the village of
Teriberka Teriberka (russian: Тери́берка) is a rural locality (a '' selo'') in Kolsky District of Murmansk Oblast, Russia, located on the Barents Sea coast, at the mouth of the river Teriberka. History As a settlement, Teriberka was first menti ...
, about north-east of Murmansk. The front-end engineering and design (FEED) is divided between different companies. The onshore transportation and technological complex, including an LNG plant, will be prepared by Technip. DORIS Engineering will prepare the subsea production system and the offshore technological platform. JP Kenny, a subsidiary of Wood Group, will design together with
Rubin Design Bureau Rubin Central Design Bureau for Marine Engineering ( Russian: Центральное конструкторское бюро "Рубин", shortened to ЦКБ "Рубин") in Saint Petersburg is one of three main Russian centers of submarine desi ...
and Giprospetsgaz, a subsidiary of Gazprom, the long subsea pipeline from the Shtokman field to south of Murmansk.
WorleyParsons WorleyParsons Limited, branded as Worley after completing the acquisition of Jacobs' Energy, Chemicals & Resources (ECR) division, is an American Australian engineering company which provides project delivery and consulting services to the ...
and its subsidiary INTECSEA will perform FEED of the production vessel, which will process produced gas before transportation onshore.


Geology

The main
reservoir A reservoir (; from French ''réservoir'' ) is an enlarged lake behind a dam. Such a dam may be either artificial, built to store fresh water or it may be a natural formation. Reservoirs can be created in a number of ways, including contr ...
is of Upper Jurassic age, with a smaller amount of gas in the Middle Jurassic and the trapping structure is a large
anticline In structural geology, an anticline is a type of fold that is an arch-like shape and has its oldest beds at its core, whereas a syncline is the inverse of an anticline. A typical anticline is convex up in which the hinge or crest is t ...
, sealed by Upper Jurassic shales.


Technical features

At the initial stage the project is expected to produce 22.5 billion cubic meter (bcm) of natural gas and 205,000 tons of gas condensate annually. Later the production is expected to increase up to 70 bcm of natural gas and 0.6 million tonnes of gas condensate. All extraction facilities will probably be located under water. The development costs are estimated at US$15 
billion Billion is a word for a large number, and it has two distinct definitions: *1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is its only current meaning in English. * 1,000,000,000,000, i. ...
to US$20 billion, although according to the estimate by
Alexander Medvedev Alexander Ivanovich Medvedev (russian: Александр Иванович Медведев, ) (born 14 August 1955 in Shakhtyorsk, Sakhalin Oblast) is the current Deputy Chairman of the Management Committee of Russian energy company Gazprom an ...
, deputy chairman of Gazprom's management committee, the field's development costs will be only US$12 billion.


Project company

The license to explore for and produce gas and condensate on the Shtokman field is owned by Russian company Gazprom Shelf Dobycha (formerly Sevmorneftegaz), a wholly owned subsidiary of
Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐzˈprom) is a Russian majority state-owned multinational energy corporation headquartered in the Lakhta Center in Saint Petersburg. As of 2019, with sales over $120 billion, it was ranked as the large ...
. Gazprom Shelf Dobycha is a sole customer for the design and construction of the field infrastructure, including a production complex, a pipeline network and an LNG plant, and has all marketing rights for hydrocarbons of the Shtokman field. Shtokman Development AG was to bear all financial, geological and technical risks related to the production activities. Gazprom owned 51% of shares in Shtokman Development, while TotalEnergies had 25% and Statoil 24% of shares. Head of the company was Yury Komarov. Shtokman Development was to own infrastructure for 25 years from field commissioning. Upon completion of phase one, TotalEnergies and Statoil should transfer their shares in Shtokman Development AG to Gazprom.


References


External links

*
Official Shtokman Development A.G. website
'
Shtokman website
by Supplier Network Oil and Gas (English, Norwegian)
Geological structure of Shtokman field (in Russian)
{{DEFAULTSORT:Shtokman Field Natural gas fields in the Arctic Ocean Natural gas fields in Russia Barents Sea Gazprom oil and gas fields Geology of European Russia