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. Last Updated: 07/27/2016

$700M Set for Far North Oil

Gazprom and state-owned oil firm Rosneft will invest up to $700 million in an offshore oil project in the Far North over the next three years, Rosneft's spokesman said.

The two agreed in September to set up a joint venture to develop Prirazlomnoye oil field after German Wintershall stopped investment in it the same month.

"As we will have an equal partnership in the joint venture, we will have to put in an equal investment share of $350 million," Rosneft's spokesman said.

He added the money would be used mainly to build an offshore platform in Severodvinsk. Gazprom has already invested up to $150 million in the platform.

Wintershall, part of the BASF group, said it halted plans to develop Prirazlomnoye for at least a year after failing to agree on a production-sharing agreement for the $1 billion project.