Gazprom and DESFA sign Basic Cooperation Agreement
in the framework of South Stream project implementation

Moscow, May 15 2009 19:06

Today in Sochi Gazprom CEO Alexey Miller, Chairman of DESFA S.A. Board of Directors Nikolaos Mavrommatis and Chief Executive Officer of DESFA S.A. Panagiotis Kanellopoulos signed a Basic Cooperation Agreement on implementation of the South Stream project on the territory of Greece.

The document stipulates the principles of interaction between the parties on the pre-investment stage of the project and determine the conditions and rules for the creation, as well as operation mechanisms for joint venture (JV) that will be set up on a parity basis for the design, construction and operation of the Greek section of South Stream.

The joint venture will prepare feasibility study for the gas pipeline on the territory of Greece. The study will contain detailed assessment of all technical, legal, financial, environmental and economic characteristics and indicators of the project.

Until the final investment decision is made regarding the implementation of the South Stream project, management committee and joint working group, to be created by Gazprom and DESFA, will engage in detailed design of technical assignments in the framework of feasibility study preparation for Greek pipeline section, as well as in regulating current activities of joint venture.

Background:

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

To implement the onshore section of the Project outside Russia, intergovernmental agreements were signed with Bulgaria, Serbia, Hungary and Greece.

The provisions of the above mentioned agreements stipulate establishing joint ventures responsible for the FS development, as well as for the further engineering, construction and operation of the South Stream gas pipeline in the signatory countries provided that the technical practicability and economic viability assessments are confirmed.

DESFA S.A. (Hellenic Gas Transmission System Operator) was created in 2007 and exclusively operates, develops and exploits the National Gas Transportation System in Greece.

Information Directorate, OAO Gazprom