"The choice of France's Total, a company not new to the Russian fuel and energy industry, demonstrates once again that Russia is ready for profound cooperation with international energy companies. We hope that this decision will send the right message to the international investment community," the ministry said.
Gazprom CEO Alexei Miller said earlier Thursday the first stage of the project in the Russian sector of the Barents Sea aims to produce 23.7 billion cubic meters of natural gas annually by 2013, and to start production and delivery of liquefied natural gas in 2014.
He said a new operating company will be set up to organize project funding, design, and construction, in which Gazprom will hold a 75% stake, and Total the remaining 25%. Gazprom could reduce its share in the future, offering other foreign partners an aggregate stake of 24%, ensuring that Gazprom retains at least 51%.
Miller said Gazprom would retain full ownership of the license-holding company, thus controlling the entire output. Total confirmed the deal, saying an agreement would be signed on Friday.
The deposit in the Barents Sea, where Gazprom plans to build a liquefied natural gas plant, holds an estimated 3.7 trillion cubic meters of natural gas reserves, and 31 million metric tons of gas condensate. The first phase, with production starting in 2011, may cost some $12-14 billion.
The deposit is the only major source of natural gas for the ambitious Nord Stream gas pipeline that will run under the Baltic Sea from Russia to Germany.
The decision to involve a foreign company comes in spite of the Russian energy giant's announcement last October that it would develop the Shtokman deposit on its own. The company had previously short-listed U.S. majors Chevron and ConocoPhillips, Norway's Statoil and Norsk Hydro and Total to develop the field.
Gazprom previously said it would only attract partners with expertise in liquefying natural gas and development in "severe weather conditions" as contractors.
