Statoil Steps Back From Shtokman Stake

Statoil has confirmed to Reuters news agency that it has taken a write-off of NOK2 billion (approx. $336.2 million) on its Shtokman investment after the consortium failed again to meet a deadline on the financial aspects of the project.

Speaking to the news agency yesterday, Statoil spokesman Jannik Lindbaek said that the decision caused the company to hand back its shares in the project.

"When the agreement expired on June 30, we formally exited our shares, but we are still in talks with Gazprom and wish to go ahead with the project in a profitable way," he said.

One of three partners in the Shtokman project, rumours have previously dogged Statoil's involvement in the project with media speculations that the company was seeking to exit the consortium. The company has previously voiced its concerns on several occasions about the fiscal situation involved in the massive Russian project.

In January this year, CEO of Statoil Helge Lund indicated that the financial aspects of the project, especially attaining tax breaks from the Russian government, where paramount to the company.

"We can't commit for an investment of this magnitude unless we know the fiscal terms," he said at the time.

The company continues to engage in talks about its future in the project. 

Gazprom is the operator of the Shtokman project with a 51 per cent stake. French major Total holds a 25 per cent stake while Norway's Statoil holds the remaining 24 per cent stake.