OREANDA-NEWS. September 16, 2011. A Shareholder Agreement for the offshore section of the South Stream project was signed today in the presence of the Russian Federation Prime Minister Vladimir Putin within the International Investment Forum “Sochi – 2011”.

The Agreement was signed by Alexey Miller, Chairman of the Gazprom Management Committee, Paolo Scaroni, Chief Executive Officer of Eni, Harald Schwager, Member of the Board of Executive Directors of BASF SE and Henri Proglio, Chairman and Chief Executive Officer of EDF.

Pursuant to the Agreement, German Wintershall Holding and French EDF each acquired a 15 per cent stake in the offshore section of the South Stream project through a 30 per cent reduction of Eni's stake.

As a result, the shareholding structure of the South Stream project's offshore section is as follows: Gazprom – 50 per cent, Eni – 20 per cent, Wintershall Holding and EDF – 15 per cent each.

“Two new shareholders from Germany and France have entered into South Stream. Accession of large energy companies to the project is a clear indication that the EU countries have acknowledged its relevance and necessity. No doubt, South Stream will not only create an additional route for safe and sustained Russian gas supplies to Europe, but also give a powerful impetus to the economic development of countries in Central and Southeastern Europe,” said Alexey Miller.

“Together with Gazprom and other European partners we have demonstrated our ability to enhance reliability of gas supplies on the example of the Nord Stream trans-Baltic gas trunkline. And now we are jointly enhancing the gas supply reliability in the countries located in Southeastern Europe where Gazprom and Wintershall have a long-standing track record of natural gas marketing,” said Harald Schwager.

“Eni is an old partner of Russia and Gazprom. It has extensive expertise in the gas industry and teamwork experience with Gazprom in the Blue Stream pipeline project. Entry of two more European companies into the South Stream project is another step towards the consolidation of partnership relations between Europe and Russia,” said Paolo Scaroni.

“Signing of this Shareholder Agreement has laid the cornerstone in the South Stream project that will fully benefit from this close cooperation with four largest global energy players, which are Gazprom, Eni, Wintershall and EDF. We work as a team to bring success to the project that will play a role in meeting the growing gas demand in Europe,” said Henri Proglio.
Background

For the purpose of diversifying natural gas export routes Gazprom is planning to construct a gas pipeline across the Black Sea to South European and Central European countries – the South Stream project.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

At present, the South Stream Consolidated Feasibility Study is being finalized including the feasibility study for the offshore section and feasibility studies for the respective gas pipelines in host countries of Southern and Central Europe.

On June 19, 2010 Gazprom, Eni and EDF entered into the trilateral Memorandum outlining the intentions of the parties in relation to the French company's entry in the shareholding structure of the joint project company.

On March 21, 2011 Gazprom and Wintershall Holding GmbH (100 per cent subsidiary of BASF) inked the Memorandum of Understanding on the South Stream project, providing for the German company's participation in constructing the project's offshore section.