The Shtokman gas and condensate field is located in the Russian Barents Sea, and the Shtokman agreement gives StatoilHydro a 24% equity interest in Shtokman Development AG in which Gazprom (51%) and Total (25%) are the other two partners.

The owners have seconded personnel to Shtokman Development AG, which is responsible for planning, financing, constructing and operating the infrastructure necessary for the first phase of the development. Shtokman Development AG will own and operate the infrastructure for 25 years from the start of commercial production. The implementation of the project is subject to a final investment decision, which is planned to be taken in 2010.

Field in production

The Kharyaga field is located onshore in the Timan Pechora basin in North West Russia. We have a 40% interest and Total is the operator.

Pursuant to the terms of the PSA, the Kharyaga field will be developed in stages. Oil production commenced in 1999, with Phase 1 production of 10 mboe per day utilising three existing wells.
 
Phase 2 was launched in 2000 to increase oil production and develop additional reserves. An additional 11 wells were drilled during this phase. Phase 3 has now been initiated with the aim of increasing production from 20 to 30 mboe per day. This phase involves drilling more production and injection wells, a process upgrade and installation of gas treatment facilities.