30 May 2011

Shtokman Development AG was invited to the parliament hearings “Legislative support for gas industry development”

On May 30, 2011 the State Duma held the parliament hearings “Legislative support for gas industry development”. The hearings were organized by the Duma Committee for Budget and Taxes. They were attended by V. Yazev, Deputy Chairman of the State Duma, representatives of the relevant Duma Committees, MPs, ministries officials, representatives of regional administrations, gas producers, scientific and experts communities.

Alexey Zagorovskiy, CEO Shtokman Development AG (SDAG) made his speech during the parliament hearings. He presented to the audience the main parameters of the Shtokman field, uniqueness of technologies applied for the field development, and introduced in detail the legislation improvement areas required for the Russian shelf development projects.

SDAG Shareholders made a decision for maximization of the Russian Content in the project. Therefore Shtokman will give an additional impulse to the development of Russian regions and industry. Shtokman implementation will facilitate economical growth of the Russian North-West, creation of jobs, increase of tax revenues to the budget of all levels, will open an opportunity to develop both local plants and whole sectors of the Russian industry.

Implementation of such big scale and trailblazing project requires massive long-term investments and need for support at all levels of the state power. Jointly with shareholders SDAG is considering four packages as possible state support: taxation, customs preferences, removal of general legislation uncertainties related to continental shelf and border control issues.

“Implementation of the Shtokman project will allow Russia to establish a new gas producing region in the Arctic shelf. Under constantly growing demand for energy sources that issue is of paramount importance for the country. That is why the state support is prerequisite for the successful project implementation”, underlined Alexey Zagorovskiy.