UPDATE 2-Statkraft buys half UK wind project for $741 mln

* Utility to build windpark with 50 pct owner StatoillHydro

* Siemens picked as turbine supplier in $595 mln contract

* 315 Megawatt offshore windpark start-up seen in 2011

* StatoilHydro, Statkraft bidding for more UK windparks

(Adds quotes, details from news conference)

By Wojciech Moskwa

OSLO, April 1 (Reuters) - Norwegian state-owned utility Statkraft agreed to buy half of a British offshore wind farm project from Norway's oil and gas producer StatoilHydro (STL.OL) for 5 billion crowns ($740.5 million).

The Norwegian firms said they will jointly develop the 10 billion crown project -- the fourth largest windfarm off Britain -- and picked Siemens (SIEGn.DE) to supply the wind turbines in a 450 million euro ($594.7 million) deal.

The project will further both company's renewable energy plans, while combining StatoilHydro's offshore technology from the oil sector with Statkraft's electricity market know-how.

Hydropower-rich Statkraft is already Europe's largest generator of renewable energy, including onshore wind power with projects in Britain.

"The partnership with StatoilHydro will take us into the offshore wind industry as well -- which is in line with our core growth strategy and within the investment plans already communicated to the market," said Statkraft CEO Baard Mikkelsen.

The 315 megawatt wind farm will consist of 88 turbines located some 17-23 km (11-14 miles) off the coast from the town of Sheringham in northern Norfolk.

A gradual start-up is planned in 2011. When fully operational, its annual electricity production is expected to be around 1.1 TWh, enough energy to power around 220,000 UK homes.

A number of European utilities have in past years bought gas fields in the North Sea and elsewhere to increase the security of their supplies. Statoil has also considered plans to boost revenues from natural gas by turning it into electricity first.

"We are predominately an energy supplier and producer and we do not anticipate moving into the (area of bringing electricity to the) final customer arena, that is not our core competence," StatoilHydro CEO Helge LundLund told Reuters on the sidelines of a news conference.

"But we would like to use our offshore technology, competence and experience to develop projects like this." Lund said the financial crisis will not stop StatoilHydro's announced "gradual" push into renewables, but it might change the pace of implementing the strategy.

Siemens will build 88 turbines with capacity of 3.6 megawatt. The turbines, whose foundation will be built into the seabed, will have giant 52 metre (170 feet) blades.

Statkraft's Mikkelsen said wind energy cooperation with StatoilHydro "could have long-term potential" and that the two companies were already in the Forewind venture bidding in Britain's third licensing round.

The Forewind venture of four partners each holding a 25 percent stake includes units of British utility Scottish & Southern Energy (SSE.L) and German utility RWE (RWEG.DE). ($1=6.752 Norwegian Crown) ($1=.7567 Euro) (Additional reporting by Aasa Christine Stoltz, editing by William Hardy)