Norsk Hydro Signs MoU With Gazprom On Shtokman.Norsk Hydro Norsk Hydro ASA (OSE: NHY, NYSE: NHY) is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. on Dec. 14 said it had signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with Gazprom to participate in the 3.2-4.3 TCM (1) (Trellis-Coded Modulation/Viterbi Decoding) A technique that adds forward error correction to a modulation scheme by adding an additional bit to each baud. TCM is used with QAM modulation, for example. Shtokman gas field in the Russian sector of the Barents Sea. Gazprom, the owner of the field which is considered one of the largest in the world, has courted a raft of oil and gas companies in the past few months to join it in the project. It has already signed MoUs with ExxonMobil, ChevronTexaco, Royal Dutch/Shell Group and Statoil. Norsk Hydro's MoU is for the study of whether its subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". technology - currently being used at its 400 MCM (MultiChip Module or MicroChip Module) A chip package that contains several bare chips mounted close together on a substrate (base) of some kind. Ormen Lange gas field - can be used to develop Shtokman. In June, Norsk Hydro and Gazprom issued a joint press release saying the private Norwegian company "could be one of the most important partners" in the Shtokman project. Norsk Hydro's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Eivind Reiten said his company saw the MoU as "one out of many steps in Hydro's long-term commitment in Russia". Gazprom's CEO Alexey Miller said "Hydro has significant experience and technology in developing offshore oil and gas fields. Uniting the competence between Gazprom and Hydro is a basis for a successful implementation of Gazprom's large-scale plans in the Arctic shelf". Norsk Hydro said the use of its subsea technology could cut development costs by around 30%. A Norsk Hydro spokesman confirmed later in the week that Hydro was seeking a 15% stake in the project. Gazprom is likely to retain at least a 50% stake and then split the remainder between a US major - to help give it access to the world's largest gas market - and one or two European companies. Norsk Hydro's Norwegian rival, the state-controlled Statoil, has said it wants 20%. In the MoU Statoil signed, Gazprom would have access to Statoil's Cove Point LNG LNG (liquefied natural gas): see under natural gas. receiving and regasification terminal on the US East Coast and would participate in its Snoehvit LNG project in the Barents Sea. Development of Shtokman will not begin before late 2007. The final consortium for the venture and its agreement should materialise by then. Gazprom wants to export part of the gas output from Shtokman in LNG form to the US market. |
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