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Russia delays choice of consortium for massive gas project
AFP
DOHA
Petroleumworld.com 04 25 06The selection of an international consortium to take part in the 20-billion-dollar Shtokman gas project in Russia has been delayed and will not announced before the end of April, the Russian energy minister said Monday.
"As you know there are five companies left on the shortlist and the selection process will be completed this spring," Victor Khristenko told reporters on the sidelines of an energy forum in the Qatari capital.
"One needs to keep in mind the complexity of structuring this project, but without doubt the Russian government is committed to carry this project through."
London's Financial Times had reported that the winning bidders for Shtokman would be announced later this week.
But the delay was confirmed by Russian gas giant Gazprom, which would be the majority partner in the project.
"Gazprom cannot choose its partners for Shtokman before the end of April," company vice president Alexander Medvedev was quoted as saying by the official Interfax news agency on the sidelines of the Russian Economic Forum in London.
Norwegian companies Statoil and Hydro, Chevron and ConocoPhillips of the United States and French group Total have been scrambling for a share of the project, located about 560 kilometres (350 miles) north of Russia's Arctic coastline under the Barents Sea.
As part of the project, Gazprom wants to build a gas-liquefying plant in northern Russia to ship LNG to the United States and overcome a reliance on Russia's ageing pipeline system as well as politically-sensitive gas transit through Central and Eastern Europe.
It is a key part of plans announced by Russian President Vladimir Putin to massively increase oil and gas exports to the United States as Russia looks to new energy-hungry markets, including also China and Japan.
"From our side as the government we will make sure that no non-commercial risks will hinder the project," Khristenko said.
AFP 04 24 06 1536 GMTCopyright © 1994-2006 Agence France-Presse. All Rights Reserved.
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