Languages

The fight for the Shtokman base

Logistics base

The developers of the Shtokman field in the Barents Sea have announced a tender for the project logistics base. Analysts believe a Shtokman base in the nearby Norway would not only facilitate smooth field development, but also stimulate general Norwegian-Russian relations and revitalize plans for a joint cross-border industrial zone in the area.

Location

The location of the Shtokman base in Norway would prepare the ground for historic business cooperation in the Norwegian-Russian borderland and give real contents to the idea about a Pomor Zone, a joint Norwegian-Russian economic-industrial zone in the two countries’ border areas.

However, time might have run out for the Norwegians. The tender had deadline on August 8, and it remains unknown how many, if any, Norwegian companies have submitted bids.

Base requirements

That tender included the whole integrated project logistics base with all facilities. The base, consisting of existing infrastructure or new facilities, will be leased for a minimum of 25 years and be accessible by road, railway and sea. The 1st part of the base is to be ready in October 2011, the tender text posted on the website of the SDAG reads.

Kirkenes

The Norwegian town of Kirkenes, located only few kilometers from the Russian border, has long eyed major benefits from the Shtokman development. The town, which has a all-the-year deep and ice-free port, is by many seen as an possible alternative for Shtokman base functions.

Interestingly, two companies are already in the process of developing base facilities in the town. The companies, one controlled by Tschudi Shipping and the other by Bergen Group, are today about to build facilities. The Shtokman field is believed to be the key motivation in both companies’ base investments.

Cooperative aspects

Adviser and port and shipping expert in the Norwegian Barents Secretariat, Oddgeir Danielsen, believes the Shtokman Development AG is seriously considering a Norwegian base alternative. He argues that Kirkenes is the most competitive Norwegian site for the base functions with the necessary geographical location and infrastructure available.

He also maintains that modest level of Norwegian bureaucracy, efficient customs mechanisms and long experience from base management play to the Norwegian advantage.

A Norwegian location for the Shtokman logistics base would also have important political aspects. Mr. Danielsen believes that a Norwegian Shtokman base with strong Russian involvement and ownership interests would be a lighthouse in Norwegian-Russian relations and help spur also a number of other new projects in the two countries’ borderland.

That would be the start of what Norwegian Foreign Ministry planners have branded the “Pomor Zone”, a cross-border economic and industrial zone along the Barents Sea. Using the two countries’ comparative advantages, is one of the main ideas behind the zone proposal. That same idea could now be applied also in the Shtokman process.