MILAN, Apr 24 (Class Editori) -- The first effects of the newfound peace between Saipem and Gazprom are visible, after the out-of-court agreement that on April, 20 sanctioned the end of the legal tug of war for the termination of the South Stream contract. Saipem announced yesterday the signing of a preliminary agreement with JSC Gazprom Neft Moscow Refinery and a contract with IDC (Infrastructure Development and Construction) for a total value of approximately 500 million euros.
The preliminary agreement in Russia provides a new sulfur recovery unit within the refinery of Gazprom Neft in Moscow, a subsidiary of the Russian oil giant. The final contract is expected to be signed by the end of June, as agreed by the parties in the general terms and conditions of the contract.
The EPC contract in Serbia is on the design and construction of a gas pipeline of about 150 kilometers and the engineering of the annexed compressor station. Last summer, the Italian utility and oil engineering company had already been assigned the feasibility study for the pipeline, estimated at around 30 million euros. As for the EPC contract signed yesterday, its value is believed to be worth around 150 million euros.
On April, 18 the arbitration agreement between Saipem and Gazprom on the South Stream project was settled amicably, four years after its launch which followed the unilateral cancellation of the contract for the construction of the pipeline. The Italian contractor was entrusted with the construction of the offshore segment of the work. However, the project was shelved due to the crisis in Crimea.
The first real evidence of the rapprochement between Saipem and Gazprom dates back to last summer, when the company led by Stefano Cao was assigned the feasibility study by the Russian giant to build a new gas pipeline in Serbia. Also, the realistic approach of Gazprom favoured the agreement. The company, in fact, devalued the contract relating to South Stream for around 800 million following an impairment test, therefore taking into account a negative outcome of the arbitration.
"The negotiation opportunities that see Gazprom and its subsidiaries as counterparties are starting again," had announced the CEO of Saipem Stefano Cao, underlining that the building of a pipipeline in Serbia could have served as a compensation.
(Source:Class Editori)
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