Gazprom Closer to Shtokman Deal

Gazprom is "very close" to a deal to develop the vast Shtokman gas field in Russia, making a concession to international energy groups by allowing foreign companies to be partners in the project, the Financial Times reports.

International companies Gazprom, Statoil, Norsk Hydro, Total and ConocoPhillips have been involved in talks over the project estimated to be worth $20 billion to $30 billion.

Gazprom's deputy chief executive Mr Medvedev told the Financial Times that Gazprom was in talks with foreign companies about a "new model" of co-operation that would "allow foreign partners to share in the economic benefits of the project, share the management, and take on a share of the industrial, commercial and financial risks".

Shtokman lies more than 500km off Russia's north coast, in 350m of water with reserves estimated at 3,200bn to 3,700bn cubic metres of gas. Artic conditions create some of the most inhospitable oil fields in the world, explaining Gazprom's concession for foreign assistance.

The project is expected to produce its first supply of gas in 2013 and begin shipments of liquefied natural gas in 2014.