StatoilHydro chief executive Helge Lund said “only the best” suppliers would be mobilised for “The Mother of All Projects”, the $16B development of the liquefied-natural-gas and piped gas infrastructure of Shtokman Phase 1 in the Russian Arctic.

“There’s a great probability that Shtokman will become a locomotive for other (Gazprom-StatoilHydro) projects in the Arctic,” Lund said. He focused on the “frame agreement” with Gazprom that would, after an investment decision in late 2009, spell a massive supply-chain activation and StatoilHydro’s own technological contribution.

No swaps of field stakes were discussed “in this round” of Russo-Norwegian talks, Lund said by video-conference from Moscow. StatoilHydro has built up its own supply-chain network in Murmansk, in the Russian Arctic, its official Barents Sea base. Lund said StatoilHydro had for 20 years been involved in Shtokman drilling and planning.

Despite the preparedness, none of the thre Shtokman signatory companies would be “forced” to commit resources ahead of a final decision on scope and spending. But he left know doubt there would be “exciting possibilities" for the supply chain.”

“This project is so complex and so demanding in all its dimensions that we must work with the very best, and I want to believe the Norwegian supply chain will be well positioned to compete in this project,” Lund said, adding that local suppliers would be among those competing.

Norwegian suppliers, with their training, hiring and Murmansk-area workshops full of local Russians, have been transformed into local companies after meeting changing Russian content rules.

Shtokman will be “three times” the development Snoehvit was, one source told Scandoil.com months back.

“Those who were along for this will be along for Shtokman.”

ws@scandoil.com

Tags: Shtokman, StatoilHydro