2nd UPDATE:Gazprom May Delay Shtokman Project On Market Conditions

Russian gas firm OAO Gazprom (GAZP.RS) says it may delay development of the giant Shtokman gas condensate field depending on market conditions, the company has said in a eurobond memorandum.

The news comes after state-controlled Gazprom announced last month it would postpone the launch of another major field, Bovanenkovo, on the remote Yamal peninsula, as the global recession cuts demand for its natural gas in Russia and Europe.

Under Gazprom's original plan to develop phase one the Shtokman field, it would produce 23.7 billion cubic meters of natural gas a year starting 2013 and up to 7.5 million metric tons of liquefied natural gas, or LNG, a year starting in 2014.

"This timeline may be revised accordingly to reflect natural gas market conditions," the company said in the eurobond memorandum seen by Dow Jones Newswires Tuesday.

Gazprom's European exports fell by almost one third in the first half of the year to 60.4 billion cubic meters from 89.1 billion a year earlier, due to high gas prices and lower demand due to the recession, the company said in the memorandum.

Gazprom is developing Shtokman, in icy waters of the Barents Sea 650 kilometers northeast of Murmansk, together with France's Total SA (TOT) and Norway's StatoilHydro (STO). They each hold 25% and 24%, respectively, in the company developing the first stage of the field.

Putin said last month, Total is being considered as a partner to develop the second stage of Shtokman. A Total spokesman declined to comment on the possible delay.

A Statoil spokesman said the Shtokman Development Company is where decisions about the schedule of the project are made, and there has been no decision from them about possible postponement.

However, majority owner Gazprom has in the past announced decisions for the development company. Gazprom is the sole holder of the gas-field license. Gazprom said peak production at the Shtokman project may reach 95 billion cubic meters a year.

Company Web site: www.gazprom.ru

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; [phone]; [e-mail]

(Adam Mitchell in Paris contributed to this story)