Russian companies in the Shtokman project

The integrated development of the Shtokman gas condensate field in the Barents Sea is primarily a Russian project with international investment and expertise. Participation by Russian industry in the project is an indispensable prerequisite for its successful realization.

Russian content in the Shtokman project means the involvement of Russian R&D institutes, industrial enterprises, and contractors, the use of Russian materials, equipment, and spare parts, and the utilization of Russian human resources. Russian content also means goods manufactured and services performed inside the Russian Federation, which are confirmed by a certificate of origin issued by the Russian Chamber of Commerce and Industry.

Under the Partnership Agreement between the SDAG shareholders, preference in the selection of contractors shall be given to Russian companies provided they demonstrate sufficient experience of performing similar work, financial stability, competitiveness in pricing, quality, and job completion time, and that they meet the overall Company and project requirements. (More details about these requirements can be found under Requirements for companies and Procurements).

Shtokman Development AG management acknowledges that efficient development of the mineral resources of the Russian continental shelf will best be achieved by international experience together with the foremost Russian technologies and know-how. Lying at the core of the project is the international partnership between Russia's largest gas concern, Gazprom, and two world leaders in the oil and gas industry — Total (France) and Statoil (Norway). What SDAG Management sees as the key to the project and the formula for its success is this:

INTERNATIONAL COOPERATION, EXPERIENCE, AND INNOVATION.

SDAG will do its utmost to support and further the development of international cooperation under the project and the establishment of joint ventures and consortiums between Russian and international companies.

Engaging Russian companies in the project as subcontractors will enable them to grow and gain experience of international cooperation and the best oil and gas industry practices, to acquire unique expertise, and master advanced methods. Moreover, international cooperation will create conditions for the development of new skills and the transfer and implementation of modern technologies and know-how, increasing the competitiveness of Russian companies in international tenders and international operations.

It should be noted that the development of oil and gas fields on the Arctic shelf of the Barents Sea will boost the economy of the northwestern region of Russia, primarily Murmansk and Archangel oblasts. This will enable allied sectors of the economy to become involved and local human resources, supply resources and transport infrastructure to be used. The Shtokman project will provide opportunities for the revival and development of local enterprises and entire industries, and set the scene for a transfer of cutting edge technologies to Russia.

To implement its Russian content strategy, SDAG is taking practical steps:

  • Since February 2008 Shtokman Development AG has opened branches in Moscow, Murmansk, and Teriberka in Murmansk Oblast. As the project develops during Phase 1 (a period of about 25 years) more than 13,000 people will be involved during the construction period.

  • The Russian Content Policy has been developed specifically for this purpose. In line with this policy, Shtokman Development AG is building long-term cooperation with Russian industry for Phase 1 and is paving the road for the next two phases. The key elements of the Russian content policy are utilization of the expertise, scientific achievements, and potential of the Russian Federation in the oil and gas industry, the development of local companies in Russia's northwestern region, creation of incentives for international cooperation, and creation of prerequisites for the transfer of technologies and know-how, in particular in the area of subsea technologies for offshore projects and LNG technology.

  • Shtokman Development AG has created a database of potential Russian contractors and suppliers. The purpose of this database is to have for the benefit of the project and beyond it a unified, updatable source of information about Russian oil and gas enterprises and companies in the Russian Federation and the services, equipment, and components they provide. It should be noted that this source plays an important role for international companies, which do not always have a good or sufficient understanding of the Russian oil and gas market. The database is intended for information and reference, and is in the public domain for ease of use by the Company's main contractors, its partners, associations of oil and gas suppliers, and the global oil and gas community. The procedure on how to be included into the database can be found in Registration of Russian Companies.

  • Shtokman Development AG regularly conducts various informational events and initiatives in order to attract Russian companies and help them develop. These are held during major oil and gas meetings and forums, industrial exhibitions, and events hosted by oil and gas supplier associations. In addition, Shtokman Development AG holds its own meetings and training workshops. Past and upcoming SDAG events can be found in Events and initiatives.

  • To maximize Russian content in the project, Shtokman Development AG cooperates with various industrial organizations and unions that link and unite Russian enterprises. Information about cooperation between Shtokman Development AG and these associations can be found in Industry associations.

  • The underlying principle of the project is its transparency. Shtokman Development AG commits to fully and openly inform companies about its plans and action related to Russian content activities and provide clarifications whenever required. The FAQ cpage contains the answers to typical questions raised. This website also allows interactive inquiries. If you are unable to find an answer to your question, you can contact the SDAG Russian Content Division (see Contacts).