Gazprom Agrees to Buy European Partners Out of South Stream Pipeline


BERLIN, Dec 29 (Reuters) - Gazprom has agreed to buy its European partners Wintershall, EDF and Eni out of the scrapped South Stream gas pipeline project, the companies said in statements on Monday.

Russia in early December abandoned the South Stream project, which was to supply gas to southern Europe without crossing Ukraine, citing European Union objections. It instead proposed an undersea pipeline to Turkey.

Before the deals announced on Monday, Eni held 20 percent of South Stream Transport, a holding company based in the Netherlands, with BASF unit Wintershall and France's EDF each owning 15 percent.

BASF said the purchase price reimburses the company for the cash it has invested in the project. A spokeswoman declined to comment on how much it has invested.

EDF too said it would recover the capital invested to date, but like BASF said the companies had agreed not to disclose financial details.

BASF and Gazprom also 10 days ago abandoned a gas assets swap deal planned for this year as companies across Europe continue to suffer from growing tensions between Moscow and the West.

(Reporting by Victoria Bryan, James Regan and Valentina Za; Editing by Michael Urquhart)

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Executive Protection Coordinator
Expertise: Risk Management|Security
Location: TX
United States Denver: Proposals Specialist
Expertise: Business Development|Marketing|Sales
Location: Denver, CO
Project Coordinator, Pipeline Construction
Expertise: Project Management
Location: Spring, TX
search for more jobs

Brent Crude Oil : $50.56/BBL 0.15%
Light Crude Oil : $47.7/BBL 0.70%
Natural Gas : $3.05/MMBtu 1.32%
Updated in last 24 hours