OGZD.L Regulatory News (OGZD)

21 Feb 2008 17:27

Oao Gazprom21 February 2008 Gazprom, Total and StatoilHydro create Shtokman Development Company for phase one on the Shtokman gas field Paris, february 21, 2008 - Today at the central office of Gazprom Alexey Miller,Chairman of the company's Management Committee, Christophe de Margerie, CEO ofTotal S.A. and Helge Lund, President and CEO of StatoilHydro signed aShareholder Agreement relating to the creation of Shtokman Development AG. Gazprom holds a 51% stake in Shtokman Development AG while Total holds 25% andStatoilHydro 24% shares. The company is registered in Switzerland. Shtokman Development AG will be organizing the project engineering, development,construction, financing and exploitation of first phase facilities related tothe development of the Shtokman field. The partners also indicated that front end engineering design (FEED) on theproject has commenced, and will be finished at the second half 2009 allowing afinal investment decision to be made. Among other things, Russian andinternational subcontractors for FEED studies have already been identified and asite has been chosen for the technical and transportation complex near Teriberkain Murmansk Region. "This strategic partnership of our companies brings together long experience,vast resources and advanced technologies which are fundamental to the success ofthis unique project, which will guarantee reliable and long-term gas suppliesfor European consumers. The establishment of the Shtokman Development Companymarks the starting point in the realization of the development of the Shtokmanfield", said Alexey Miller. "The creation of this joint company by Gazprom, Total and StatoilHydro is amajor milestone allowing us to combine our forces and experiences in largedevelopments in harsh and remote environments to meet the challenges of theShtokman project", said Christophe de Margerie. "Shtokman can become a locomotive for new developments in the arctic region,with safe operations under cold and harsh condition. We look forward to the nextstages in cooperating with Gazprom and Total on this large and challengingproject by contributing with our competence and experience from the NorwegianContinental Shelf", said Helge Lund. Information: The Shtokman field is situated in the central region of the Russian sector ofthe Barents Sea. The deposit holds around 3.8 trillion cubic meters of gas and 37 million tons of gas condensate in place. The Shtokman gas condensate field will become a resource base for deliveries ofRussian gas - both pipeline and LNG - to markets of the Atlantic basin. Sevmorneftegaz, a wholly-owned subsidiary of Gazprom, holds gas and gascondensate exploration and exploitation licenses. Phase one of the development of the deposit provides for a yield of 23.7 billioncubic meters of natural gas per annum, the start of pipeline deliveries tocommence in 2013 and LNG in 2014. On 13 July 2007, Gazprom and Total signed a Framework Agreement on the mainterms of cooperation in the development of the first phase of the Shtokman gascondensate field. Gazprom and StatoilHydro signed a similar Agreement on 25October 2007. The Agreement stipulates that a special purpose company will be the owner of theinfrastructure of the first phase of the field for 25 years after the fieldbegins production. The relations between the special purpose company and OOO Sevmorneftegaz will bebased on a contract that says that the company will bear all the financial,geological and technical risks in the production of gas and condensate and theproduction of LNG. OAO Gazprom retains 100% of the shares of OOO Sevmorneftegaz and all the rightsto the marketing of the production. OAO Gazprom Information Office Total S.A. StatoilHydro ASA Media contacts Media contacts Tel.: Media contacts(495)719-10-77 Patricia Marie Lars Bjelvin(495)719-10-97 +33 1 47 44 45 90 + 47 48 29 56 67fax (495) 719-90-08 Lisa Wyler Kjersti MorstelContacts for investor relations: +33 1 47 44 38 16 + 47 91 78 28 14Tel.:(495)719-10-97 Fax: +33 1 47 44 68 21 Contact for investor relations:(495)719-10-36 Lars Troen Sorensen(495)719-10-27 Contacts for investor +47 90 64 91 44e-mail: relations:pr@gazprom.ru Jerome Schmitt http://www.statoilhydro.comhttp://www.gazprom.ru +33 1 47 44 58 53 http://www.total.com This information is provided by RNS The company news service from the London Stock Exchange