Finnish companies seeking contracts relating to Shtokman gas field in Barents Sea
Putin suggests that Nord Stream permit could boost chances to get contracts
|
|
When the prime ministers of Finland and Russia met in St. Petersburg last Sunday, one of the Russian delegates, Viktor Khristenko, the Russian Minister of Industry and Energy, pointed out that Russia is interested in Finnish expertise regarding the development of the Shtokman natural gas deposit in the Barents Sea.
The Shtokman project is technically very challenging, as the natural gas is extracted in Arctic conditions from the bottom of the ocean.
The project is valued at more than USD 20 billion - from which amount the Finnish companies also wish to receive profits.
At a joint press conference, the Russian Prime Minister Vladimir Putin suggested that granting a permit to the Nord Stream gas pipeline connecting Russia and Germany through the Baltic Sea would be beneficial for those Finnish companies which are seeking contracts relating to the Shtokman gas field.
However, the Finnish Prime Minister Matti Vanhanen did not comment on this remark.
Nord Stream will be used in part to transport Shtokman gas down the Baltic to German and other European markets.
The Barents Sea project is being developed by Shtokman Ag, registered in Switzerland, a company jointly owned by Russia's national gas company Gazprom (51%), France's Total (25%) and Norway's StatoilHydro (24%).
Matti Rasimus, Head of Machinery Industry at Finpro, an association founded by Finnish companies, says that the value of the Shtokman-related planning sold by some Finnish companies during the current year amounts to nearly EUR 30 million.
The infrastructure of the area will have to be improved and partly reconstructed, which will also offer prospects for Finnish companies, according to Rasimus.
The most lucrative bidding contests are still pending, but they should be finished in the course of next year, whereupon Shtokman Ag will select the winner.
One of the projects is a new production plant, which in practice consists of a ship anchored on top of natural gas wells.
In order to operate, the planned production plant will need ice-breaking auxiliary vessels. These projects are the ones the Finnish ship design and construction firm Aker Arctic Technology would like to get its hands on.
”One such ship would cost around EUR 100 million. The total value of all service vessels is nearly EUR one billion”, says Mikko Niini, the Managing Director of Aker Arctic.
The Finnish metalworking project management company SteelDone Group has already delivered steel structures for two oil rigs that will be erected in the Shtokman gas field. SteelDone subcontracted the work out to a shipyard in Vyborg, Russia.
Martti Saarela, the Managing Director of SteelDone Group, says that the EUR 10 million project has been completed. The company is now looking for more work relating to Barents Sea projects.
According to Gazprom, Shtokman will start producing gas to be piped on to European customers at the end of 2013, and liquefied natural gas in 2014, to be transported by tankers to the US and Canadian markets.
Many analysts took a sceptical attitude towards the Shtokman gas field and its planned schedule already prior to the financial crisis, as in technical terms the gas held by Shtokman is difficult to extract.
The financial crisis has only increased the scepticism. The profitability of the expensive project will go down with the market price of natural gas.
The Shtokman project is technically very challenging, as the natural gas is extracted in Arctic conditions from the bottom of the ocean.
The project is valued at more than USD 20 billion - from which amount the Finnish companies also wish to receive profits.
At a joint press conference, the Russian Prime Minister Vladimir Putin suggested that granting a permit to the Nord Stream gas pipeline connecting Russia and Germany through the Baltic Sea would be beneficial for those Finnish companies which are seeking contracts relating to the Shtokman gas field.
However, the Finnish Prime Minister Matti Vanhanen did not comment on this remark.
Nord Stream will be used in part to transport Shtokman gas down the Baltic to German and other European markets.
The Barents Sea project is being developed by Shtokman Ag, registered in Switzerland, a company jointly owned by Russia's national gas company Gazprom (51%), France's Total (25%) and Norway's StatoilHydro (24%).
Matti Rasimus, Head of Machinery Industry at Finpro, an association founded by Finnish companies, says that the value of the Shtokman-related planning sold by some Finnish companies during the current year amounts to nearly EUR 30 million.
The infrastructure of the area will have to be improved and partly reconstructed, which will also offer prospects for Finnish companies, according to Rasimus.
The most lucrative bidding contests are still pending, but they should be finished in the course of next year, whereupon Shtokman Ag will select the winner.
One of the projects is a new production plant, which in practice consists of a ship anchored on top of natural gas wells.
In order to operate, the planned production plant will need ice-breaking auxiliary vessels. These projects are the ones the Finnish ship design and construction firm Aker Arctic Technology would like to get its hands on.
”One such ship would cost around EUR 100 million. The total value of all service vessels is nearly EUR one billion”, says Mikko Niini, the Managing Director of Aker Arctic.
The Finnish metalworking project management company SteelDone Group has already delivered steel structures for two oil rigs that will be erected in the Shtokman gas field. SteelDone subcontracted the work out to a shipyard in Vyborg, Russia.
Martti Saarela, the Managing Director of SteelDone Group, says that the EUR 10 million project has been completed. The company is now looking for more work relating to Barents Sea projects.
According to Gazprom, Shtokman will start producing gas to be piped on to European customers at the end of 2013, and liquefied natural gas in 2014, to be transported by tankers to the US and Canadian markets.
Many analysts took a sceptical attitude towards the Shtokman gas field and its planned schedule already prior to the financial crisis, as in technical terms the gas held by Shtokman is difficult to extract.
The financial crisis has only increased the scepticism. The profitability of the expensive project will go down with the market price of natural gas.
Helsingin Sanomat