Alexander Medvedev, deputy chairman of the Gazprom management committee, said total investment in the deposit, which went into operation on Tuesday, would total 2 billion euros (about $2.9 billion).
The deposit launch ceremony was attended by First Deputy Chairman of the Russian Government and Chairman of the Gazprom Board of Directors Dmitry Medvedev, Chairman of the Gazprom Management Committee Alexei Miller and German Foreign Minister Frank-Walter Steinmeier.
The deposit, for which Gazprom subsidiary Severneftegazprom holds a license, has 805 billion cubic meters of proven gas reserves, and 5.7 million tons (42 million barrels) of proven oil reserves.
The Yuzhno-Russkoye deposit is expected to produce 1.4 billion cubic meters of gas in the fourth quarter of 2007 and reach its design capacity of 25 billion cubic meters per year in 2009.
Gazprom on Monday closed a deal with BASF AG on the German chemical company's participation in the project, and also drew up a list of assets to be swapped with Germany's E.ON to enable it to join the west Siberian gas field project as well.
Under an asset swap agreement between Gazprom and Germany's BASF AG, signed earlier this year, the German energy concern bought a 25% minus one ordinary share and one privileged share without a voting right in Severneftegazprom.