Gazprom cuts 2008 Shtokman capex, ups Yamal -Ifax

MOSCOW, July 31 (Reuters) - Russia's Gazprom (GAZP.MM) will spend around 10 percent less on its giant Shtokman gas field in 2008 than earlier planned and raise investment in the Yamal project in northwest Siberia, Interfax reported on Thursday.

Gazprom, the world's largest gas producer, now plans to invest 14.7 billion roubles ($627.1 million) in Shtokman compared with an earlier planned 16.2 billion roubles, the news agency cited a Gazprom's memorandum as saying.

But the gas giant will increase investments in the giant Yamal project, which includes construction of a railway and a pipeline, by 10 billion roubles to around 105 billion roubles.

Gazprom's state-controlled board of directors last week approved a $2.2 billion increase in 2008 capital expenditure to speed up development of new fields and pipelines.

Total spending will amount to 821.66 billion roubles, including 531.2 billion roubles for capital expenditure. The budget for long-term financial investments increased by 59.75 billion roubles to 290.46 billion roubles.

Yamal holds potential gas reserves of 50 trillion cubic metres, the largest in Russia, and Gazprom views it as its key source of future gas output as production is falling at mature deposits in West Siberia.

Shtokman, in the Barents Sea, is expected to begin producing 23.7 bcm of natural gas in 2013, and will begin liquefied natural gas (LNG) production in 2014.

Gazprom (GAZP.MM) owns a 51 percent stake in Shtokman, which has recoverable reserves of 3.8 trillion cubic metres (tcm), making it one of the world's biggest gas fields.

France's Total (TOTF.PA) has a 25 percent stake, while Norway's StatoilHydro (STL.OL) holds the balance. (Reporting by Maria Kiselyova; Editing by Erica Billingham)