Technip, ranking among the top five companies in the field of oil, gas and petrochemical engineering services, has been awarded a front-end engineering design (FEED) contract for the onshore portion of the first phase of the Shtokman gas project in Russia.

Awarded the contract by Shtokman Development Company, the Shtokman gas field is located in the Barents Sea and is one of the world’s largest gas condensate deposits, with reserves of approximately 3,800 billion m3 of gas and 37 million tonnes of hydrocarbon condensate.

The onshore facilites for Shtokman Phase 1 will be located at a site adjacent to Teriberka, 120km east of Murmansk. Phase 1 of the project includes an offshore gas pipeline terminal, gas treatment plant, a liquefied natural gas (LNG) train with a capacity of 7.5 million tonnes per year and an export plant for the Russian and European markets.

Technip’s operating centres in Paris, France and St. Petersburg, Russia, will execute the contract, which is scheduled to be completed by mid-2009 and will form the technical basis for the detailed design, procurement and construction contracts to be awarded at a later date.

In addition to the FEED contract, Technip has been awarded two additional contracts - one to establish a set of project standards and the second to assist Shtokman with the definition of site preparation works.

Shareholders in the Shtokman Development Company are Sevmorneftegaz, a wholly owned subsidiary of Gazprom (51%), Total (25%), and StatoilHydro (24%).