Russia OKs Oil Deal With Norway Company

StatoilHydro ASA Will Help Russian Gas Monopoly Gazprom Develop Huge Shtokman Gas Field

(AP)  State-controlled gas monopoly Gazprom said Thursday it has agreed with Norway's StatoilHydro ASA on a deal to help develop Russia's huge Shtokman gas field, a key source of energy for Europe and North America.

StatoilHydro joined Total SA of France in taking a stake in the operating company that will plan, finance and build the first stage of the technically challenging Arctic project.

OAO Gazprom refused to give details.

StatoilHydro, formed this month when Norsk Hydro sold its oil and gas division to its larger Norwegian rival Statoil, said in a statement that it will take a 24 percent stake in the operating company.

Gazprom agreed in July to give Total a 25 percent stake in the operating company and said one or several other foreign partners could get a further 24 percent in the future.

Gazprom also had been in talks with U.S.-based ConocoPhillips, which Thursday appeared to have been shut out of the project. Gazprom has said it will keep a controlling 51 percent stake in the operating company.

Gazprom also has said it will retain ownership of all of Shtokman's reserves, estimated at 3.7 trillion cubic meters of gas -- enough to meet U.S. demand for six years.

This is in line with an unwritten policy that has emerged under President Vladimir Putin whereby state energy companies have control of strategic deposits.

The agreement with StatoilHydro was announced by the Kremlin press service, which said Putin had discussed it Thursday with Norwegian Prime Minister Jens Stoltenberg.

Putin was to travel later Thursday to Portugal, where on Friday he was to meet with leaders of EU-member countries. Russia's energy policy, especially the reliability of supplies and the intentions of Gazprom, has long been of deep concern to many European countries. Russia provides 30 percent of EU energy imports, including 44 percent of natural gas imports.

The Shtokman field, located under the icy waters of the Barents Sea, is seen as key to reinvigorating Gazprom's stagnant gas output.

Gazprom CEO Alexei Miller said in July that pipeline deliveries from the field would begin in 2013 and the project would produce its first liquefied natural gas in 2014. The first phase envisages annual production of 23.7 billion cubic meters of gas per year, Miller said.