15 February 2011

Public hearings were held on Shtokman Project, Phase I

On February 15, 2011, in Teriberka, materials of design engineering documentation on onshore start up facility of the Shtokman Project, Phase I, were discussed, including section “List of Environmental Measures Including Environment Impact Assessment (EIA)”.

Onshore part of the Shtokman Gas Condensate Field Integrated Development Project covers onshore sections of subsea trunk pipeline and fiber optic communication line, gas treatment unit, operation camp, water intake station, power generation unit and other infrastructure facilities which are intended to be constructed near Teriberka village. Design engineering documentation was elaborated by YUZHNIIGIPROGAZ, and FRECOM prepared the environmental section.

Local community, representatives of NGO, such as Barents Division of WWF and other public environmental organizations — members of the North Coalition, heads of regional and local authorities, regional and federal state agencies took part in the public hearings. Representatives of Kola Saami Association, North Fishermen Association, divisions of Russian Academy of Sciences of Kola Research Center also participated in the hearings.

In compliance with Russian environmental legislation and Public Hearing Regulations, Public Liason Offices were open since January 11 in Moscow, Murmansk, Kola and Teriberka, where everybody could look through the documents and provide comments and proposals. The materials have also been published on Shtokman web-site: www.shtokman.ru

All comments received during today’s meeting, as well as following the results of Public Liason Offices functioning, will be systematized, consolidated and handed over for processing by relevant departments of Shtokman Development AG.

As a result of discussions the materials presented by SDAG have been endorsed. Petr Alexeev, Deputy Head of Kola Regional Administration said: “The public hearings held is the next step in the Shtokman Project implementation, which will give a new impulse to development of Teriberka, Kola District and Murmansk Region in general. We are looking forward to the start of construction works on the site, growth of demand for local manpower resources and, definitely, increased budget revenues at all levels, using which we’ll be able to solve long-standing social problems”.