Gazprom May Delay Shtokman Project

MOSCOW (Dow Jones Newswires), May 28, 2009

Russian gas firm OAO Gazprom may delay development of the giant Shtokman gas condensate field depending on market conditions, the company has said in a eurobond memorandum.

Under Gazprom's original plan, it would produce 23.7 billion cubic meters of natural gas a year starting 2013 from the first development phase of the field and up to 7.5 million metric tons of liquified natural gas, or LNG, a year starting in 2014.

"This timeline may be revised accordingly to reflect natural gas market conditions," the company said in the eurobond memorandum seen by Dow Jones Newswires Tuesday.

Gazprom has seen its European exports fall by up to one third this year, due to lower demand amid an economic recession and high gas prices.

Gazprom is developing the Shtokman field located under harsh conditions in the Barents Sea together with France's Total SA and Norway's StatoilHydro, which hold 25% and 24% in the project, respectively.

Peak production at the Shtokman project may reach 95 billion cubic meters a year, Gazprom said.  

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