Chevron, Conoco And Three Firms More To Develop Giant Russian Deposit

Russia?s natural gas monopoly Gazprom revealed on Friday the shortlist of oil companies, claiming for the development of the giant Barents Sea?s Shtokman gas deposit. The list includes two US oil majors Chevron and ConocoPhillips, two Norwegian firms Norsk Hydro and Statoil, and France?s Total.

The Shtokman deposit contains reserves of 3.2 trillion cubic meters of natural gas and 31 million tons of gas condensate, more than the world?s total annual gas consumption. The project is estimated to cost $10 billion.

Production is scheduled to start in 2010, and reach full capacity two years later. The United States and Europe will be the main recipients of liquefied natural gas, with the U.S. receiving 25 percent of the LNG from the deposit. ?North America will be the main destination for gas supplies from the Shtokman deposit,? said Gazprom ?s head Alexei Miller.

Miller also said that Gazprom would hold the controlling stake of 51 percent in the project. The share of other companies short-listed for the tender is yet to be determined. Gazprom?s chief executive also expressed a desire to develop the Shtokman field under product sharing agreements (PSA).

?This project can be developed under product sharing agreements,? Alexei Miller told journalists.