At the table: Total chief executive Christophe de Margerie (left), Gazprom chief executive Alexei Miller (centre) and StatoilHydro president Helge Lund at today's signing
Shtokman trio create operating unit
Russian gas export monopoly Gazprom has signed an agreement with France’s Total and Norway’s StatoilHydro creating a joint venture to develop the Shtokman gas field in the Arctic Barents Sea.
Both companies have already signed framework contracts with Gazprom to take part in the development.
Under today’s deal, Total and StatoilHydro will hold shares of 25% and 24% respectively, while Gazprom will retain a 51% stake, the Associated Press reported.
The agreement was signed by Gazprom chief executive Alexei Miller, StatoilHydro president Helge Lund and Total chief Christophe de Margerie.
The remote field is expected to supply gas for the Nord Stream pipeline under the Baltic Sea to Western Europe and liquefied natural gas for export to the US and other countries.
First gas is expected to flow in 2013, the companies said today.
The new Swiss-based operating company will oversee planning, financing and building of the first phase of the project, which is expected to produce 11 billion cubic metres of gas per metres. The project could eventually produce up to 100 Bcm of gas per year.
In order to do so, the partners will have to overcome the challenges of producing gas in harsh conditions far offshore in the iceberg-strewn sea.