Total to book major gas reserves from Shtokman field – report
French oil and gas major Total is reported to have an option to purchase up to 300 billion cubic metres (Gm3) of gas from Gazprom’s, Shtokman field, according to Russian daily news service Kommersant.
The Russian news service reported that Total is in the process of agreeing to book the gas reserves from the Shtokman field in the Barents Sea. Estimated reserves for phase one of the project are around 23.7 Gm3. Kommersant further reported that under the terms of the deal, Total would have to pay cash to Gazprom. The financial amount has not been disclosed, however, reports in the Russian press estimate the cash deal at $800 million (EUR 588 million). Gazprom is set to retain full marketing and licence rights over the gas.
Total will have limited management options in the project through its 25% stake in a company set up to establish the infrastructure, through an agreement signed in July when
Total was chosen by Gazprom as a partner to develop the field (see ESGM 13.134). Shtokman holds reserves of 4.1 trillion cubic metres of gas.
The first pipeline delivery of gas from the Shtokman development is scheduled to start in 2013, according to Gazprom (see ESGM 13.133).
Total refused to comment on speculation surrounding details of the deal on Wednesday. A spokesperson for Total said an investment decision on the project will be made in 2009. DM
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