Led by Alexey Miller, the Company’s Management Committee Chairman, Gazprom’s delegation has set out today on a visit to Norway, holding in Hammerfest negotiations with Helge Lund, Statoil’s President and CEO.

The meeting placed special emphasis on cooperation in liquefied natural gas production and supply to the USA.

The parties addressed the implementation of a Memorandum of understanding, reviewing the progress in the study of joint promising projects, the Shtokman gas condensate field development at the first place, construction of a gas liquefaction plant and LNG deliveries to the USA.

Gazprom’s delegation traveled to the Melkoya Island where Statoil was involved in the construction of a plant that would liquefy gas from the Snohvit field. In the course of the trip, Alexey Miller and Helge Lund debated Gazprom’s potential involvement in an LNG project at the Snohvit field and possible use of Statoil-owned regasification capacities in North America.

“Statoil counts on unique experience of gas extraction in the Barents Sea and we hope that our technologies, proficiency and standing on the gas production and sales market will be helpful to Gazprom. The challenges addressed today are of crucial significance both for our firms and countries,” – underscored Helge Lund.

“We’ve looked into the progress by Statoil in the Barents Sea offshore. Statoil’s Snohvit development achievements are very important for us. Joint endeavors when applying the experience and state-of-the-art technologies accumulated by our companies will serve as guarantee for the long-term and mutually beneficial cooperation,” – Alexey Miller was quoted as saying.

The parties agreed to convene on the next meeting in late May, this year.

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A vertically integrated multi-profile 76.3%-state-owned petroleum firm, Statoil is running business through 29 locations worldwide. The company counts on vast experience of operations in the Norwegian offshore and is the world’s third crude oil seller. Statoil is a major natural gas supplier to Europe.

The Snohvit (White-Snow) field is situated in the Norwegian Barents Sea. The total field reserves are valued at 300 bcm. The field will be developed solely with remote-controlled underwater vehicles and equipment.

The resources to be withdrawn from the field will be channeled to the Hammerfest LNG terminal (Norway) via a 143-km-long underwater pipeline. One train of the first European natural gas liquefaction plant will have an annual capacity of 5.7 bcm. Statoil started technically developing the Snohvit field in 2002 and LNG production & supply to the USA and Europe is due 2006.

Statoil is serving as operator of the Cove Point regasification terminal (2.4 bcm per annum), which is one of the 4 existing regasification terminals in the USA. The terminal is based in Maryland, US West Coast, between Washington DC and New York City. Said area is being regarded upon as the most promising US gas market. Statoil entered into an agreement to modernize the terminal with the view of boosting its throughput. Upon finalization of the modernization due 2008, Statoil will exercise control over the 10 bcm/y regasification, storage and transmission Cove Point terminal.

On 8 September 2004, Gazprom, Rosneft and Statoil sealed in Moscow a Memorandum of understanding.

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