01 June 2004 08:58
GAZPROM, SHELL CONTINUE TO DISCUSS ACHIMOV PROJECT
MOSCOW. June 1 (Interfax) - Talks between Gazprom and Shell on the joint development of the Achimov deposits of the
Zapolyarnoye field are on-going, said Alexander Ananenkov, the Russian gas giant's deputy CEO.
The talks are "at the stage of discussing the terms for Shell's accession to the project," Ananenkov
said.
Gazprom is asking Shell to compensate it for what it has already spent on infrastructure at the site, Ananenkov
said.
Capital costs will be $700 million. Wintershall is financing the
pilot phase at a cost of about $90 million in view of the fact that the
project is being delivered in a region with well-developed
He also said Gazprom's partners need to have the necessary expertise and specific technology. "Gazprom
already possesses enough high-technology of its own, but because reserves are becoming harder to recover it needs [even
more] high technology to develop [these] fields," he said.
The partner's financial capabilities are another criterion for joining the project, Ananenkov said.
the project. The joint venture will sell all the gas it produces to
Gazprom, to preserve the single export outlet. The price of the gas
Gazprom and Wintershall formed the Achimgaz joint venture in July 2003 to develop a first experimental section of the
Achimov deposits of the Urengoi gas condensate field.
Profits will be shared equally.
The company is expected to produce about 200 billion cubic meters
infrastructure. The pilot phase involves detailed engineering and the semi-commercial development of a first section.
Full-scale commercial production will go ahead if this phase is a success.
Gazprom will finance its investments with the profits generated by
Wintershall is able to produce gas in difficult conditions. The
Achimov deposits are 3,150-3,800 meters below ground and their
geological structure is far more complex than the Senoman and
produced at the deposit will be based on prices for gas in Germany and in the Yamalo-Nenets autonomous district.
of gas and 40 million tonnes of condensate during the entire development period, which is 43 years. When production
gets underway, output is planned at about 8.3 billion cubic meters of gas and 2.8 million tonnes of condensate a
year.
Gazprom CEO Alexei Miller said "we view this project as a benchmark in relations with foreign partners in this
kind of project."
Valanginian deposits that are currently under production.
[Interfax] |
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