Italy’s Saipem, a company which was supposed to carry out a giant part of the South Stream pipeline work in the Black Sea, has sounded out again regarding the cancellation of the project.

In today’s statement Saipem has revealed it has received a “Notification of suspension of Marine Spread activities” from the client, South Stream Transport, a consortium of OAO Gazprom, Eni S.p.A., EDF, and Wintershall Holding GmbH – a BASF subsidiary.

According to Saipem’s press release, the notification covers all its vessels currently engaged in activities related to pipe laying at the South Stream pipeline project which was supposed to carry Russian gas to Europe through the Black Sea.

To remind, Russian President Vladimir Putin said at the beginning of this week that Russia would not proceed with the construction of South Stream pipeline. However, at that point, while noting the statement of Vladimir Putin, Saipem said the work on the project would continue as the company had not received a formal notice of contract termination.

Saipem has today said: “At present it is not possible to determine the economic impact of the suspension on Saipem’s business, as both the duration of the suspension and the client’s ultimate decision on the project are unknown.”

Source: www.offshoreenergytoday.com

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