Gazprom in South Stream Buyout

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Gazprom has signed an agreement for the acquisition of the remaining 50% stake in the South Stream gas pipeline project (South Stream Transport BV).

South Stream Transport was owned by Gazprom with a share of 50%, by Eni with a share of 20%, and Wintershall and EDF with a share of 15% each. The company was established to build the offshore section of the South Stream gas pipeline.

On December 1st, President of Russia, Vladimir Putin, stated that they won’t pursue the South Stream pipeline project for gas from the Black Sea to Europe. Soon after that, Italian company Saipem was notified to suspend all ongoing operations on the project, while Allseas, the owner of the world’s largest vessel Pieter Schelte, confirmed that their 2015 South Stream deal went south.

Following the transaction, EDF, Eni and Wintershall will recover the capital invested to date, calculated coherently with existing agreements.

The companies agreed not to disclose the purchase price.

Source

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