The flagship project for development of the Shtokman gas condensate field has been shelved, a Gazprom’s official said, Reuters reports.
Vsevolod Cherepanov, head of Gazprom's production department, said that Gazprom agreed with France's Total and Norway's Statoil that costs are too high for the project to be implemented at the moment.
"All parties have come to the conclusion that the financing is to high to be able to do it for the time being," he said.
"We are collecting new data... We have extensive gas resources. We shouldn't take hasty decisions."
The partners have been unable to kick-start the remote project in the Barents Sea due to a number of challenges such as high tax bills and nasty weather conditions.