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Gazprom meets with Norway's Hydro on Shtokman project

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MOSCOW, April 4 (RIA Novosti) - Russian energy giant Gazprom said Tuesday it had held talks with Norwegian oil and gas major Norsk Hydro on the project to develop a major natural gas field off Russia's Arctic coast.

Gazprom CEO Alexei Miller met with Hydro President and CEO Eivind Reiten following yesterday's meetings with senior representatives of the companies on the shortlist for the project's first stage, which includes the construction of a liquefied natural gas plant.

Monday's negotiations to develop the giant Shtokman deposit in the Russian part of the Barents Sea involved the president of Norway's Statoil, Helge Lund, and the chief executive of U.S. oil giant ChevronTexaco, David O'Reilly.

Other companies vying for the Shtokman project include U.S. giant ConocoPhilips and France's Total.

Gazprom said Monday its potential partners in the Shtokman development project had until the end of the week to amend their proposals. The company said it would choose two or three partners for a consortium to run the project.

Gazprom is expected to unveil its choice of partner before April 15.

The Gazprom-operated Shtokman natural gas field is estimated to contain 3.2 trillion cu m of natural gas and 31 million metric tons of gas condensate.

According to the Russian Economic Development and Trade Ministry, natural gas production at the Shtokman field on terms of a product sharing agreement may start in 2010.

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