Saipem Hits South Stream with €759M Claim

Italian oilfield services player, Saipem, has filed a €759 million claim against Gazprom after Russia decided to scrap the South Stream project resulting in the termination of a major contract related to the pipe laying activities under the Black Sea.

Namely, in the company’s prospectus of January 25, Saipem informed that on November 10, 2015 it served a request for arbitration against Gazprom-owned South Stream Transport B.V. at the ICC of Paris. The company’s claim amounted to approximately €759 million. Saipem’s notice to the ICC of the request for to South Stream Transport BV took place on December 15, 2015.

In July last year, Gazprom terminated the deal after failing to reach an agreement with the Milan-based company on the Turkish Stream project.

Russian gas giant Gazprom, has through its South Stream Transport BV, informed Saipem to terminate the contract for the construction of the first line of the offshore section of the pipeline, signed in the framework of the project South Stream in 2014.

South Stream Transport BV spokesperson has confirmed that: “Saipem S.p.A. has filed a request for arbitration in a dispute over a contract with South Stream Transport B.V.”

“South Stream Transport has sought to resolve this dispute amicably with Saipem, and regrets that Saipem has chosen to resort to arbitration. South Stream Transport will defend the claim in its entirety,” the spokesperson added.

South Stream Transport was unable to provide further details at the moment, given the legal nature of this matter.

Subsea World News Staff