Gazprom reassures foreign partners in Shtokman

STAVANGER, Norway Aug 27 (Reuters) - Russia's Gazprom (GAZP.MM) sought on Wednesday to reassure its foreign partners in the giant Shtokman project that their business interests will be protected.

Shtokman Development AG Chief Executive Yuri Komarov told an oil and gas conference that Russia aimed to develop a "straightforward and transparent business model with balanced interests and risk sharing among the partners" in the project.

Relations between Western countries and Russia have hit new lows after Moscow's military foray into Georgia, following a gradual cooling over years due in part to strong-arm tactics towards foreign investors aimed at installing Russian control over energy projects.

"We are capable of finding business solutions that will balance our interests with those of our partners," Komarov told the forum.

Gazprom has a 51 percent stake in Shtokman Development, while Norway's StatoilHydro (STL.OL) has 24 percent and France's Total (TOTF.PA) 25 percent.

The foreign partners will not own the gas or be able to market it but will get a pre-defined share of revenues -- which will depend on market prices, he said.

"All shareholders are fully alligned and all decisions so far have been taken unanimously," Komarov said.

The shareholders are drafting the field's development plan for Shtokman, located in the remote and icy waters of the Barents Sea, and are due to make a final investment decision in the second half of 2009.

Majority state-owned StatoilHydro said this week the political environment in Russia was becoming more demanding and that it would consider political risk when making a final investment decision. Norway's oil minister said he hoped the Shtokman project would go ahead as planned.

Komarov reaffirmed that the first phase of developing the Shtokman field, which holds an estimated 3.8 trillion cubic metres of gas, would cost "not less than $15 billion".

In the first phase due on stream in 2013, Shtokman is expected to produce 11 billion cubic metres a year. In 2014, some 7.5 MTA of liquefied natural gas (LNG) would also be shipped to Europe and the United States, Komarov said.

But Komarov's powerpoint presentation to the forum ended with the question: "Shtokman, will it be done on time and within budget? Time will show!"

(Editing by Rory Channing)