High Costs Force Gazprom To Shelve Arctic Gas Project

Law360, New York (August 29, 2012, 7:52 PM EDT) -- Russian gas company OAO Gazprom has shelved indefinitely the development of its Shtokman gas field in the Arctic Sea, citing excessive costs, the Wall Street Journal reported Wednesday.

The Shtokman gas field is an ambitious joint project between Gazprom and French and Norwegian oil and gas giants Total SA and Statoil ASA that had been in the works for more than a decade. The latest delay due to financing concerns throws into question the future viability of a massive natural gas development in the Barents Sea,...
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