Saipem Hit by South Stream Project Cancellation
- Business & Finance
Italian oil and gas industry contractor Saipem says it has received a “Notification of suspension of Marine Spread activities” from their client South Stream Transport B.V. for the South Stream pipeline construction contract.
Saipem says that the notification covers all vessels currently engaged in activities related to pipe laying. In the contract announcement from March 2014, Saipem said that the pipeline construction on the project would be carried out by Saipem 7000, the J-Lay vessel, and Castoro Sei, the S-lay vessel.
Saipem had been contracted by South Stream Transport B.V. for the construction of the first line of the South Stream Offshore Pipeline, from Russia to Bulgaria across the Black Sea, for a total value of approximately EUR 2 billion USD (2.47bn), as well as to provide supporting works relating to the construction of the second line of the South Stream Offshore Pipeline for a total value of approximately EUR 400 million (USD 494m).
South Stream Transport B.V. is an international joint venture between Gazprom (50%), Eni (20%), EDF (15%) and Wintershall (15%).
Earlier this week World Maritime News Staff reported that Pieter Schelte, world’s largest crane vessel, lost the South Stream contract.
Russia shelved the South Stream project because of reluctance of the EU to give the go-ahead for plans to supply southern Europe with gas via Bulgaria. Putin added that Turkey may be an alternative option for the plans.
Following the cancellation, Alexey Miller, Chairman of the Gazprom Management Committee and Mehmet Konuk, Chairman of the Board of Directors of Botas Petroleum Pipeline Corporation signed in Ankara a Memorandum of Understanding on constructing an offshore gas pipeline across the Black Sea towards Turkey.
World Maritime News Staff