Zubkov: Shtokman Will be Postponed

In a press conference last week Mr. Zubkov said that the start-up of the development of the huge Shtokman gas field in the Barents Sea will be postponed, RIA Novosti reports. He did not offer any reason for the delay, but stressed that the project would go ahead regardless:

- Shtokman is a promising project and there is no doubt that it will be realized.

According to Zubkov, the Board of Directors in Gazprom discusses the investment program for the Shtokman project practically every month. Investments in 2009 were cut from the planned 920 billion RUB to 761.5 billion RUB. The investments for 2010 are approved to 802 billion RUB. Zubkov underlines that gas prizes and gas consumption are constantly being analyzed by Gazprom.

The French stockholder in the project, Total, has on several occasions mentioned a possible delay in the project. Earlier this month Total's vice-president for exploration and production in Central Europe and Continental Asia Arnaud Breuillac said that a final investment decision on the Shtokman gas field is impossible before the end of 2010 due to problems with financing, as BarentsObserver reported.

The investment decision was originally planned to be taken during the first quarter of 2010.

Gazprom officials have also indicated the previous deadline could slip. The company's deputy chief executive Alexander Medvedev told reporters in September that Gazprom could delay Shtokman if gas demand in Europe doesn't recover fast enough.

Copyright 2009. Barentsobserver. com. All rights reserved.