The massive, $40 billion South Stream pipeline project which was designed to supply Europe with Russian gas through the Black sea, has been cancelled.

Russia’s decision against the construction of the offshore pipeline citing a lack of commitment of Bulgaria/EU, has impacted the suppliers.

Saipem has seen its shares fall following the decision, despite the company claiming the project would still move on. Saipem had signed contracts worth hundreds of million of U.S. dollars for the pipe laying work at the project.

This also means that one of the most interesting vessels in the world this year, the colossal ‘Pieter Schelte’, has lost its contract to lay the second line of the South Stream offshore pipeline.

Under the contract signed in April, the 382 m long and 124 m wide multi-purpose heavy-lift and pipeline installation vessel, would start laying almost 900 km of offshore pipe for the second line of the pipeline in the summer of 2015 while Saipem would be responsible for Line 1.

Swiss-based firm and the owner of the ‘Pieter Schelte’, was asked for comment on the South Stream cancellation news.

Allseas replied: “The loss of the South Stream line 2 contract is unfortunate and means that Allseas will now start searching for new work for that period.”

The ‘Pieter Schelte’, recently delivered by Daewoo in South Korea, in November set sail towards Rotterdam for the final outfitting. The vessel will be used to decommission several oil platforms in the North Sea.

Source: www.offshoreenergytoday.com

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