Saipem exits South Stream pipeline project

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%.


Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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