Environmental safety as part of the Shtokman project

The Russian Arctic nature is specific with high sensitivity and exposure to man-made impacts. Therefore, the basic pre-conditions for the project implementation involve meeting Russian and international environmental standards, eco-friendliness and preventing negative impacts on the marine and terrestrial ecosystems of the Arctic zone when constructing and operating the Shtokman gas and condensate field facilities.

In October 2006 the Federal Nature Management Supervision Service (Rosprirodnadzor) granted the approval of the state environmental expertise on the investment rationale for Phase 1 of the Shtokman field development embracing liquefied natural gas production and sea-borne transportation.

During the project implementation the participating companies adhere to the principles and obligations set forth by the Gazprom Environmental Policy, the Gazprom dobycha shelf Environmental Policy and the Shtokman Development AG HSE Policy.

Shtokman Development AG currently performs the Environmental Impact Assessment (EIA) under the Russian standards simultaneously with the Environmental, Social and Health Impact Assessment (ESHIA) under the international standards.

Shtokman Development AG also holds regular consultations with the environmental and social organizations in the region. Representatives of all the parties concerned in the project take part in the meetings including environmental organizations of the Murmansk Oblast and representatives of the Arctic indigenous minorities.

In 2009 Shtokman Development AG and the World Wide Fund for Nature (WWF) signed the Letter of Intent. The Letter stipulates for bilateral consultations, working meetings, information and data sharing in the context of the environment-geared projects implementation and environmental protection. All the Russian environmental non-profit organizations concerned are welcome to join the initiative.

A process and environmental control (monitoring) system will be deployed to acquire the recent information about the environmental situation in the area of the Shtokman gas and condensate field facilities construction and operation as well as about the man-made impact.

Potential hazard and risk mitigation measures traditionally prevail over the accident management measures. Development, planning, maintenance of the production facilities and equipment under the Shtokman project will be arranged in a way to ensure the reliable operating conditions.

Personnel management policy as part of the Shtokman project

Innovative solutions are being elaborated as part of the Shtokman project implementation that will allow using partially-manned technologies in extreme climatic conditions. Therefore, one of the keys to successful implementation of the large-scale project is a team of highly skilled experts. Their training should be initiated at this very moment.

The main staff training partners are leading Russian petroleum and engineering institutions including Gubkin Russian State University of Oil and Gas, Admiral Makarov State Maritime Academy, Bauman Moscow State Technical University, Ukhta State Technical University, Murmansk State Technical University, Arkhangelsk State Technical University.

Purposeful activity is being performed to develop the innovative programs of further vocational education, experts training and re-training courses with due regard for hi-tech and partially-manned technologies to be implemented when developing the offshore fields.

The work is currently underway to construct the Gazprom training center and training site. The main objective of the training center is to provide the existing and newly-commissioned production facilities of Gazprom with highly professional staff.

Among the training priorities are: prospecting, exploration, pre-development and operation of the offshore hydrocarbon fields, subsea transmission by pipelines, liquefied natural gas production, storage and transportation. Personnel training and further vocational training courses will be arranged here as well as scientific and methodological activity to increase the efficiency and security when developing fields on the continental shelf.

Social focus of the Shtokman project

The Shtokman field development will have a considerable socioeconomic impact. Russian companies will place considerable orders for the equipment production and services rendering. The infrastructure in the areas of the port complex, drilling and construction sites will expand. The domestic industry will receive an impetus for innovative development through manufacturing of new import-substituting products for the gas industry.

The project implementation will contribute to the employment growth in the Murmansk Oblast in parallel with the tax and other revenues of the local budget as well as to the social programs implementation in the region.

During the construction stage over 10 thousand new jobs will be created and occupied mainly by the residents of the Murmansk Oblast. The gas industry development will give rise to related sectors – construction, transportation and services.

When constructing and operating facilities in the Shtokman field, Gazprom will preferably attract the Murmansk Oblast succession pool experts and retired officers of the Northern Fleet. Moreover, the assistance will be given to the local citizens in obtaining the necessary vocational skills.

Construction of the 1,300 kilometer long Murmansk – Volkhov gas pipeline will be of primary importance. Connecting the Shtokman field with the Unified Gas Supply System of Russia, this gas pipeline will also allow implementing a socially important program for the gasification of the Murmansk Oblast and the Republic of Karelia The gasification will boost industrial development in the region.

In October 2010 Gazprom and the Murmansk Oblast Government signed an Agreement of Cooperation over 2010 to 2015. The Agreement promotes the bilateral relations within Gazprom’s strategic projects in the Murmansk Oblast including, first of all, the project for the comprehensive development of the Shtokman gas and condensate field. Under the Agreement, the Murmansk Oblast Government will create favorable conditions for Gazprom to invest in gas production, transmission and liquefaction and hydrocarbon processing projects in compliance with the legislation in force.

Shtokman Development AG, Gazprom dobycha shelf and the Murmansk Oblast Government cooperate under the appropriate documents as well.

Public hearings as part of the Shtokman project

In October 2006 the project successfully passed the public hearings carried out throughout the year in the Murmansk, Leningrad Oblasts and the Republic of Karelia.

In March 2010 Gazprom dobycha shelf together with Piter Gaz successfully held the public hearings in the Teriberka settlement of the Kola District, Murmansk Oblast. The public hearings concerned the Program of Comprehensive Engineering Survey to Design the Shtokman Field Development Facilities (Phases 2 and 3) and the Environmental Impact Assessment during These Operations.

In May 2010 additional public hearings were held in the Teriberka settlement and the Kola town concerning the Project for Comprehensive Development of Shtokman Gas and Condensate Field. Phase 1 (Offshore Facilities), in particular the section themed as the List of Environmental Activities including the Environmental Impact Assessment as well as the project documentation clarifying the process waste water treatment technology in the Shtokman gas and condensate field (the Barents Sea shelf) including the environmental impact assessment.

Survey activities as part of the Shtokman project

Starting from 2002 Gazprom neft shelf and Gazprom dobycha shelf have fulfilled dozens of survey missions contributing to decision-making on facilities design in the Shtokman gas and condensate field.

What are the features of offshore production

• 6 engineering and geological expeditions (including geo-engineering and geo-physical operations);
• 9 engineering, hydro-meteorological and ice expeditions;
• 4 engineering and geodetic expeditions;
• 3 ecological expeditions;
• 1 explosive ordnance disposal expedition;
• 5 complex expeditions.

Ice expedition

Enlarged photo (PNG, 236 KB)

Surveys have been carried out as part of this activity to install a semi-submerged drilling rig for exploratory drilling. In September 2006 Gazprom successfully accomplished drilling of exploratory well No.7 in the Shtokman field.

Engineering surveys have been carried out for several pipeline route options, potential locations of the LNG plant and onshore facilities deployment. The Teriberka Bay was finally selected as the best option. An explosive ordnance disposal operation has been successfully completed in the Teriberka Bay allowing to seek and destroy nine explosive ordnances including two anchored mines, three depth charges, two plane-launched projectiles and two torpedoes of World War II.

Minesweeping in Teriberka Bay participated by ships of Russian Navy Northern Fleet and Iskatel company

Enlarged photo (JPG, 2 MB)

Explosive ordnance – anchored mine

Enlarged photo (JPG, 2 MB)

A comprehensive engineering survey has been performed onshore, near the Teriberka settlement, in order to construct the port transportation and technological complex facilities.

In the course of the ice expeditions a set of ice survey operations was performed, the data acquired during previous surveys was consolidated and local specifications were developed on the basis of the ice conditions in the Shtokman gas and condensate field area.

How are subsea gas pipelines built

Between 2008 and 2010 Shtokman Development AG also arranged numerous engineering and ecological surveys in the offshore, coastal and onshore zones of the project. The data acquired during the surveys is used for environmental and design studies.

The offshore survey addressed the hydrological behavior, hydrochemical parameters and biological components of the sea. In particular, biological studies focused on all types of plankton: neuston and benthos as well as fish, birds and marine mammals.

Oceanographic, hydrochemical, radiological and hydrobiological studies were carried out using remote sampling and diving equipment as part of the coastal surveys during four seasons of the year in the Teriberka, Dolgaya and Opasova Bays.

Coastal surveys were carried out onshore the Teriberka Peninsula within the area of the onshore infrastructure facilities deployment and their impact. Particular attention was given to archeological surveys – 34 archaeological monuments (a dwelling site with huts and a single hut, camps) of the Neolithic, Early Metal and Medieval Ages were discovered.

A public opinion poll showed that the population in general had a good attitude to the Shtokman project development in the region.

In summer 2010 Gazprom dobycha shelf was performing a comprehensive offshore engineering survey in the Teriberka Bay to design process facilities within Phases 2 and 3 of the Shtokman project. The survey will be resumed in summer 2011.

Database of potential Russian 

suppliers and contractors

In order to ensure and maximize Russian Content in the Shtokman project Shtokman Development AG has published present Database of potential Russian contractors and suppliers. This Database is a renewable and updated source of information and reference. The aim of the Database is to provide information and contacts of enterprises, service contractors and equipment suppliers in the oil and gas area and adjacent spheres, which are registered on the territory of the Russian Federation. Presence of companies in the Database increases their chances to participate in the Shtokman project at all stages from prequalification to construction, however its is understood that it will not mean their automatic prequalification for Company tenders. The contractor and supplier data are taken from sources contained in the public domain or provided by the registered companies.

Requirements for companies

SDAG requirements are the same for all companies regardless of their country of origin, both at prequalification and tender stages. The key contractor selection criteria for the Shtokman project are:

• Guaranteed high HSEQ standards
• Equipment compliance with project technical specifications
• Similar work experience
• High reliability of equipment or services provided
• Quality control and quality assurance of equipment/services
• Financial stability
• Qualified personnel
• Cost and completion times

Major factors in the selection process are also company reputation and English-speaking personnel. Project management skills would be an added bonus. Shtokman Development AG welcomes and supports, through its own and joint initiatives, the striving by Russian companies to improve and develop their own technologies, resources, equipment, and business methods in order to improve their competitiveness for the Shtokman project and on the international market. This includes adopting modern international oil and gas industry practices, working on international contracts, studying and applying international standards, and obtaining international certifications.

The detailed technical and other requirements are issued as part of the tender documentation to successful bidders.