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Reuters: Gazprom: No foreign help for major Arctic fields

Fri Nov 30, 2007 12:50 AM GMT

NEW YORK (Reuters) – Russia’s Gazprom OAO (GAZP.MM: Quote, Profile , Research) said on Thursday it is not looking for foreign investment into two major Arctic projects on the Yamal Peninsula, but said it might welcome foreign oil companies at other fields there.

Gazprom, the world’s largest natural gas producer has said it plans to spend more than $1 billion (484 million pounds) at the Bovanenkov and Kharasavei fields in the Arctic peninsula as it speeds up exploration to replace declining Siberian production.

Vlada Rusakova, head of the company’s department of strategic development, said Gazprom will work independently at those fields.

“If there are some interesting proposals — some interesting technologies offered to develop some other fields — we will consider those offers,” she said.

As Yamal is in Northwest Siberia, the company will need tens of billions of dollars to bring gas from remote deposits into its trunk gas pipeline system.

It plans to produce the first 15 billion cubic meters of gas at Bovanenkov in 2011, gradually bringing output to 250 billion cubic meters a year.

Industry analysts say Yamal’s development will dwarf Shtokman, another giant deposit, which is located in the stormy Barents Sea and will need at least $20 billion in investment.

Royal Dutch Shell (RDSa.L: Quote, Profile , Research) has expressed interest in getting involved in a major project on the Yamal peninsula.

(Reporting by Michael Erman; Editing by Jeffrey Benkoe)

© Reuters 2007. All Rights Reserved.

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