Gazprom and StatoilHydro to cooperate in Arctic

Russian and Norwegian partners renew agreement on joint projects with goal of developing Shtokman gas field in the Barents Sea

By Sarah Hurst

For Petroleum News

The energy giants of Russia and Norway, Gazprom and StatoilHydro, have renewed a pledge to work together, with their CEOs signing a memorandum of understanding June 6 at the 13th International Economic Forum in St. Petersburg. The agreement envisions that the companies will jointly engage in geological exploration, development and production of hydrocarbon resources in northern regions, according to a release issued by both companies.

The companies plan to cooperate 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 resources. The agreement is valid for three years and will replace a 2005 memorandum of understanding between Gazprom, Statoil and Hydro.

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

“The development of the biggest of the projects — the Shtokman field — will become a starting point for the development of Arctic hydrocarbon reserves, a catalyst for the design and adaptation of technologies, which will help our companies operate efficiently in harsh northern climatic conditions,” Miller continued. “The rich offshore resources of the Arctic as well as the unique experience of Gazprom in the implementation of major energy projects open dazzling possibilities for further development of our large-scale partnership.”

“The signing of the new memorandum demonstrates the continuity of long-term relations between StatoilHydro and Gazprom,” said Statoil CEO Helge Lund. “Norway and Russia are strategic partners in the north, sharing opportunities and responsibilities in the Arctic region. 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. We are looking forward to further cooperation with Gazprom for the mutual benefit of our companies and the two nations.”

Gazprom and StatoilHydro are partners in Phase 1 of the Shtokman gas condensate field development in the Barents Sea.