IMPLEMENTATION OF THE SCHTOKMAN PROJECT – START OF

HYDROCARBON RESOURCES DEVELOPMENT ON THE ARCTIC

SHELF OF RUSSIA

V.S. Vovk (Gazprom), A.Ya. Mandel (Gazprom dobycha shelf), R.O.

Samsonov (Gazprom VNIIGAZ)

The depletion of onshore oil and gas conditions the need for accelerated

development of offshore fields of the World Ocean.

The Russian Federation has the most extensive continental shelf in the

world. According to both Russian and foreign geologists’ estimations, its major

part is promising in terms of oil and gas deposits. First and foremost, it concerns

the Arctic shelf of Russia, though the degree of its exploration accounts for

approximately 10%. Meanwhile, unique and large oil and gas fields are discovered

in this region of the World Ocean today; hydrocarbon resources of a range of

structures in the Barents, Kara, Laptev, East Siberian and other Seas of the region

are estimated (Fig. 1). Total estimated hydrocarbon resources of the Arctic shelf of

Russia amount to approximately 18% of the total resource volume of the World

Ocean shelf.

In recent years Gazprom has stimulated works on development of oil and gas

resources on the continental shelf of the Arctic shelf of Russia.

Prirazlomnoe, Schtokman, Severo-Kamennomysskoe, Kamennomysskoe-

more and Kirinskoe fields are considered among first sites for commissioning in the

period from 2010 to 2020 (Fig. 2).

Fig. 1. Overview map of promising areas of the Russian shelf.

Fig. 2. Promising oil and gas bearing areas of the Arctic shelf of Russia.

The largest and the most promising field for working out the strategy of

Russian gas industry development for the nearest 50 years is Shtokman GCF and

its satellites. The proven C1 and C2 reserves of this field amount to approximately

3,8 trn. m3 of gas and 37 mln. t. of condensate. The field is situated at 650 km to

the north-east of Murmansk. The sea depth amounts to 350 m. This region is

located under extremely severe natural and climatic conditions: long polar night,

frequent storms, ice and icebergs (Fig. 3).

Fig. 3. Main properties of the Shtokman GCF.

Gazprom VNIIGAZ, commissioned by Gazprom, drew up the design

technological document for the development of the Shtokman GCF in 2006. It was

approved by the Central Development Commission (Rosnedra – Russian agency

for subsoil use) in March 2007. In November 2007 the Gazprom’s Management

Committee approved the Feasibility study of investments in the integrated

development of Shtokman GCF.

The basic project of Schtokman GCF development stipulates the planned gas

production level of 71,7 bil. m3/a, 50% of which is scheduled for supply to the

unified gas supply system already by 2013 and other 50% is planned to use for

liquefied gas production (LNG) from the beginning of 2014. It is planned to reach

the maximum annual gas production level of 71,7 bil. m3/a by 2020. Gas

condensate production will reach 650 thou. t/a by then. At the first Phase the LNG

output will account for 7,5 mln. t/a, at the second Phase it will increase up to 15

mln. t/a and at the third Phase – up to 30 mln. t/a. It is planned to supply LNG to

Europe and countries of the Atlantic basin, including the USA. The field operation

period – 50 years.

Taking into account the tight schedule of the project implementation, lack of

technical solutions and field development experience, which are proved by the

world practice, in this region as well as the need for vast financial investments into

the project, the Gazprom’s Management decided to commission leading foreign oil

and gas companies with experience in projects on offshore field development for

the first Phase of the Shtokman GCF development. Therefore, “Shtokman

Development AG” with 51% Gazprom’s share, 25% Total and 24% StatoilHydro

(Fig. 4) was established for the purpose of organizing engineering, construction

and operation of facilities within the first Phase of the Shtokman GCF.

Fig. 4. Operator of the first Phase of the project on the Shtokman GCF

development – “Shtokman Development AG”

Main infrastructure facilities of the Shtokman GCF comprise wells, subsea

production facilities, technological platforms, offshore pipelines, coastal

technological complex, LNG plant and trunk gas pipeline for gas supply to UGSS.

The production treatment will be carried out at three technological platforms and

delivered via offshore pipeline to Tiberica township at the second Phase. The

majority of gas will be liquefied at LNG plant and supplied for export to special

vessels via constructed marine terminal.

All this requires addressing for the first time in the world practice a range of

technically complicated issues connected with ensuring all-year-round failure-free

operation of drilling and production facilities under complicated hydro-

meteorologic conditions, including ice conditions, at the considerable distance

from coastal supply bases.

The formulated tasks will be fulfilled using the following technical

solutions:

- Subsea well completion;

- Increased production rate of wells;

- Offshore ice-resistant detachable platforms;

- Extensive subsea pipelines for gas and condensate transmission;

- LNG plant with technological lines of high production rate under Arctic

conditions.

The general scheme of Shtokman GCF infrastructure is presented at Figure

5.

The implementation of listed technical solutions requires introduction of

new technologies, which has been never used in Russia yet and in some cases –

never used in the world practice.

At the same time the subsidiary company of Gazprom – Gazprom dobycha

shelf – carries out preliminary works for development of the 2nd

and 3rd Phases of

Shtokman GCF. Such works are carried out taking into account technical and

organizational solutions, which are being developed for the first Phase.

Fig. 5. Scheme of Shtokman GCF facilities.

As it has been already said, the Shtokman field is the first field of the Arctic

shelf of Russia that is scheduled for commissioning in the near future. Thus, it is

necessary to develop the corresponding regulative base for engineering and

operation of facilities, which is practically missing in Russia now. In particular, it

is necessary to identify and approve the requirements for the equipment that can be

used on the Arctic shelf. To accelerate this process, special Technical

Specifications (STS) will be worked out for the Shtokman project.

One of the main requirements for equipment is reliability. Extreme

environmental conditions, the project scope and its long implementation period

create the need for special requirements for equipment and systems, taking into

account the potential of both Russian and foreign industry given their maximum

harmonization. Such approach will allow to use new Russian equipment at other

fields of the Arctic region further on.

Other important issue to be addressed for successful implementation of the

Shtokman project is insufficient development of coastal infrastructure and absence

of specialized vessels and bulk carriers.

The Shtokman GCF with developed infrastructure will in fact become the

centre of oil and gas production province in the Barents Sea. Gazprom has

developed the program of integrated development of this region. The program

comprises:

• Cooperation with current coastal gas production facilities;

• Establishment of unified production collection, treatment and

transmission system for the group of adjacent fields;

• Development of the unified integrated system of remote management of

offshore production facilities.

The comprehensive scheme of infrastructure development at fields in the

Barents Sea will account for maximum production level of the Shtokman GCF,

capacities of which, released in the period of declining production, will be used for

collection, treatment and transmission of production of field satellites. It will

condition the time and order for commissioning other fields of the Shtokman

region (Fig. 6).

Fig. 6. Integrated development of the Shtokman GCF and its satellites.

Thus, the implementation of the Shtokman project will require development

and introduction of brand new technologies and technical means, drawing up the

Russian regulative base, implementation of the personnel program, development of

infrastructure and specialized fleet that can ensure sustainable development of oil

and gas industry in the Arctic region. It is necessary to set up and provide the

operation of infrastructure of constant meteorologic support for works on the

continental shelf, unified state system of emergency and navigational and

hydrographic support for offshore works, environmental and radiation safety

systems, antiterrorist and countersabotage protection, etc.

The achievement of all mentioned tasks requires engaging both corporate

(Gazprom) and state funds. At present there are negotiations on the participation of

the Russian Ministry of Transport in construction of specialized ports at the coast of

the Kola Peninsula and on creation of gas carriers fleet, etc. The stated tasks will be

achieved using intellectual and industrial potential of Russia and contemporary

global experience in this area, which will allow to perform large-scale works on the

hydrocarbon resources development on the Arctic shelf of Russia.