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Sunday, 20 July, 2008, 02:50 GMT | more prices >>

Shtokman company 'off the blocks'

By Upstream staff

Russian gas monopoly Gazprom looks set to set up a company to handle the first phase development of the gigantic Shtokman gas field, in the Barents Sea.

The move, expected tomorrow, follows a two-month delay.

Gazprom said today that company boss Alexei Miller is due to meet Christophe de Margerie, Total's chief, and StatoilHydro chief executive Helge Lund, a Reuters report said.

Total and StatoilHydro are Gazprom's partners in Shtokman's first development stage.

The operating company was meant to be operational by 20 December last year, but was hit by delays that caused concerns among Gazprom's Western partners.

Gazprom will own 51% of the new company, Total 25% and StatoilHydro the remainder.

Gazprom wants to develop Shtokman, which has reserves estimated at 3.8 trillion cubic metres of gas and about 37 million tonnes of gas condensate, in four stages.

The first stage is expected to cost $15 billion.

The project is expected to start producing between 23 billion and 24 billion cubic metres of natural gas per year by 2013, while liquefied natural gas deliveries are seen starting in 2014, a Reuters report said.