Russ Oil-Gas

18 March 2008 - Upstream OnLine - Russian gas giant Gazprom has opted to hand the prized front-end engineering and design job for the $15 billion first phase of the Shtokman development to French outfits Technip and Doris together with UK player JP Kenny. The company overseeing the development, Shtokman Development, majority owned by Gazprom, said in a statement the companies would carry out the FEED for the project's first stage. The statement said Technip would prepare engineering studies on the project's onshore gas technological complex, including the proposed liquefied natural gas plant. Doris work on the FEED for the subsea production system and the offshore technological platform, while JP Kenny will do the job for the 600 kilometre subsea pipeline. Two Russian engineering companies, Rubin and Giprospetsgaz, will also be involved. Shtokman Development said the FEED contracts would be completed in 15 months in the second quarter of 2009, allowing the company to make a final investment decision as planned by the end of next year. The cost of the project's first stage - one of four planned stages - was initially estimated at $15 billion. Shtokman Development company is a special purpose vehicle set up by Gazprom, France's Total and Norway's StatoilHydro to build the infrastructure at the Barents Sea field, which holds an estimated at 3.8 trillion cubic metres of gas. Gazpromholds 51% of the Switzerland-registered venture, while Total and StatoilHydro hold 25% and 24% respectively.