StatoilHydro says Russia more demanding politically

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STAVANGER, Norway | Mon Aug 25, 2008 7:14am EDT

STAVANGER, Norway Aug 25 (Reuters) - Norwegian oil and gas group StatoilHydro (STL.OL) said on Monday that the political environment in Russia has become more demanding.

Majority state-owned StatoilHydro is one of two foreign partners helping develop Gazprom's (GAZP.MM) giant Shtokman field in the Russian part of the Barents Sea, alongside France's Total TOTA.PA, in a project seen costing $15-20 billion.

Asked about the impact of Russia's cooler relations with the West after the conflict in Georgia, Chief Executive Helge Lund said StatoilHydro was focused on helping produce the development plan for Shtokman in the Arctic.

"It's a more demanding political environment," Lund told reporters at StatoilHydro's headquarters in Stavanger.

"It (the political environment) is one of the elements we have to consider. Our focus is on the job itself," he said.

Russia has said it would freeze military cooperation with NATO members, which include Norway, in the wake of a growing row with the West over its military incursion into Georgia.

StatoilHydro has a 24 percent stake in Shtokman Development AG, the company that is 51 percent owned by Gazprom and in charge of carrying out the Shtokman project. Total owns the remaining 25 percent.

Shtokman, one of the world's biggest fields with 3.8 trillion cubic metres of gas, is expected to supply liquefied natural gas (LNG) to Europe and the United States and to come on stream in 2013. (Reporting by Wojciech Moskwa and Terje Solsvik)

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