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Shell may join Russia's Arctic gas project

25th May 2012

Shell may join Russia's Arctic Shtokman gas project, with Gazprom keeping its majority stake.

Talks regarding Shell's participation in Shtokman are under way, according to reports.
There are different project configurations under discussion now but Gazprom will keep a 51 per cent stake," a source close to the consortium told Reuters.

Gazprom sources said earlier this week that there could be a departure from Shtokman, where the Russian gas giant has partnered with Statoil of Norway and Total of France.

Citing its owns sources, Russia's Kommersant daily newspaper said on Friday that Statoil might leave the project, which has been mired in prolonged and painstaking talks over investments, timing and configuration.

According to the newspaper, the issue of a possible new Shtokman's structure will be discussed at the meeting chaired by Russia's President Vladimir Putin later on Friday, with Gazprom's and Statoil's chief executives attending.

Total owns 25 per cent, Statoil 24 per cent and Gazprom the remainder of Shtokman, one of the world's largest gas fields with reserves of 3.7 trillion cubic metres located 550 km (340 miles) offshore in the freezing waters of the Barents Sea.

The consortium in its present form was established in 2008 with a view to producing 23.7 billion cubic metres of natural gas per year.

Shell and Gazprom are already partners at Sakhalin-2, Russia's sole liquefied natural gas plant.

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