Development company for Russia’s largest gas field formed

Russia's Gazprom, France's Total and StatoilHydro of Norway have signed an agreement to create a joint company to develop the Shtokman gas field in the Barents Sea. Russia’s largest field is to provide gas to European customers through the Nord Stream pip

The newly-created company, Shtokman Development, is owned by three companies, with a 51 per cent stake under Gazprom’s control. The board will have five representatives from Gazprom and two each from Total and StatoilHydro.

After production at the Shtokman field is launched in 2013, the company is to deliver 23.7 billion cubic metres of gas to Europe yearly.

It will produce natural gas for 25 years, after which the Russian giant will buy out Total’s and StatoilHydro’s stakes in the project.

The reserves of the Shtokman gas field are 3.8 trillion cubic metres of natural gas and about 27 million tonnes of condensate.