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. Last Updated: 07/27/2016

Total Allowed to Book Gas From Shtokman

French oil major Total will be able to book up to 300 billion cubic meters of gas reserves from its joint Shtokman project with Gazprom, Kommersant reported Wednesday.

The newspaper quoted industry sources as saying the figure represented 25 percent of reserves of phase one of Shtokman.

It also said Total would have to pay a certain cash compensation for the opportunity to book reserves.

The field holds reserves of 3.7 trillion cubic meters of gas, enough to supply the world for over a year, but only some 1.22 trillion cubic meters are slated for development in phase one.

The share of Total in Shtokman's phase one reserves would be enough to cover France's gas consumption for almost seven years. Gazprom's deal with Total has been 10 years in the making and became one of the biggest foreign deals for the Russian company as the partners prepare to invest over $15 billion in the first phase over 25 years.

Total will gain a 25 percent stake in a special purpose vehicle that will operate the field and own its infrastructure.

Gazprom will retain outright ownership over Shtokman's license and control the field's production and marketing rights, but Total has said it would be able to book some reserves.