Shtokman project may be too expensive – Total executive
The Shtokman gas project in the Barents Sea may prove too expensive, an executive at French energy group Total says.
The planned final investment decision might also be delayed.
The cost for the first phase of the long-discussed project was originally estimated at $15 billion, but Gazprom has expressed worries about cost overruns. With weakened demand for natural gas amid development of shale gas production in the U.S., the economics of the project are becoming more difficult for shareholders.
- The project is a bit expensive to our taste,” said Total’s vice president for exploration and development, Andre Goffart, when asked about the economics of the ambitious project, Foxbusiness reports, citing Dow Jones.
Goffart declined to say what cost the project is estimated now. Goffart also said a final investment decision on the project’s first phase due next month would be delayed to later this year.
Yesterday Petr Sadovnik from the Russian Federal Agency on Subsoil Usage said that the partners in the giant Shtokman project are discussing to postpone launch to 2018, as BarentsObserver reported.
