Athens: Italy-based oil and gas contractor Saipem has exited the South Stream offshore pipeline project, which will connect Russia with Europe via the Black Sea.
The contract was granted a termination of convenience for its contract at the project, where its pipelaying vessel Castoro 6 (28,000 dwt, built 1978) was in the process of mooring in Russian waters to begin laying a pipeline. The specific reason for the termination was not disclosed.
“The termination for convenience is a standard contractual clause which provides for the termination of the agreement in the absence of a contractual breach, with compensation determined in accordance with the terms and conditions of the contract,” a statement from Saipem explained.
Russia’s OAO Gazprom holds a 50% stake in the South Stream project; Italy’s Eni holds a 20% stake, while France’s EDF and Germany’s Wintershall Holding (part of the BASF group) each hold 15%.
