Russia: Gazprom, Eni Executives Discuss South Stream Progress

Eni, Gazprom Executives Discuss South Stream Progress

The Gazprom headquarters hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Paolo Scaroni, Chief Executive Officer of Eni.

The parties discussed the joint projects in the energy sector, in particular, the progress with the South Stream project. It was stressed that the project was being implemented according to schedule.

Paolo Scaroni expressed his contentment with a mutually beneficial partnership in the Russian market.

The meeting participants focused on preparation of an agreement on delivery of natural gas produced by Arcticgaz from the Samburgsky licensed block to the Unified Gas Supply System of Russia.

Following the meeting results, Alexey Miller and Paolo Scaroni confirmed their intention to continue the constructive dialog in the key areas of bilateral cooperation as part of the joint projects between Gazprom and Eni in the Russian and international energy markets.

In November 2006 Gazprom and Eni entered into the Strategic Partnership Agreement. Under the Agreement, the existing contracts for Russian gas supplies to Italy were extended until 2035. Moreover, Gazprom began to directly supply the Italian market with Russian gas in the amount of up to 3 billion cubic meters a year starting from 2007 and was entitled to acquire stakes in Eni’s international assets.

With a view to diversify the natural gas export routes Gazprom is implementing the project for constructing a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

On September 16, 2011 Gazprom, Eni, Wintershall Holding and EDF sighed the Shareholder Agreement for the offshore section of the South Stream project. Pursuant to the Agreement, the stakes in the South Stream project offshore section were distributed as follows: Gazprom – 50 per cent, Eni – 20 per cent, Wintershall Holding and EDF – 15 per cent each.

Offshore Energy Today Staff, December 7, 2011; Image: Gazprom

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