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Norway joy: as StatoilHydro joins Shtokman

Shtokman berth for StatoilHydro

Russian gas giant Gazprom will take on Norway's StatoilHydro as its second foreign partner at the massive Shtokman development in the Barents Sea, the Kremlin said.

The news came in a statement released by the Russian government this morning.

Gazprom has already chosen France's Total as its first partner to help develop the project's $15 billion to $20 billion first phase.

StatoilHydro confirmed the Kremlin's statement, saying: "The agreement gives StatoilHydro a 24% equity interest in Shtokman Development Company where Gazprom (51%) and Total (25%) are the two other partners."

The Shtokman field, located in the Russian sector of the Barents Sea, is the world's largest undeveloped offshore gas field with gas initially in place of around 3.7 billion cubic metres.

Annual production is estimated to at 23.7 Bcm for the first phase. The basis for phase 1 includes both liquefied natural gas and piped gas.

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