Shtokman Consortium to Reveal Redesign in June

The Shtokman consortium will launch a revamped design for the Shtokman field this June, according to Reuters news agency.

The news agency reports that the consortium, which includes Gazprom (51 per cent), Total (25 per cent) and Statoil (24 per cent), is considering abandoning plans to build a pipeline as part of the project in favour of concentrating on liquefied natural gas (LNG) instead.

Reuters reports that several sources from the Russian government, the industry and the consortium itself have intimated that the technical aspects of the project continue to be problematic, with all construction tenders cancelled.

The Shtokman project throughout its lifetime has continued to be marred by delays, especially in relation to fiscal details on the project. Since last year, a final investment decision (FID) on the project has been delayed three times as the consortium continues to hold out for tax breaks.

The consortium announced at the end of last month that a new FID date has been set for the 1st of July 2012.

At that time, the consortium cited financial and technical concerns as the reason for the delay.

"The shareholders are confident that the project can be improved further, both technically and economically," a statement from the Shtokman Development AG said.