Christopher E. Smith
Pipeline Editor
HOUSTON, Jan. 22 -- Serbia was reported Jan. 22 as having agreed to sell OAO Gazprom a controlling interest in state oil company NIS. Terms of the deal were not disclosed, but Gazprom in December 2007 offered €400 million for a 51% stake in the company. At the time, Gazprom also promised an additional €500 million of investment and that it would route the South Stream pipeline through Serbia.
South Stream is a €10 billion gas pipeline project, running 558 miles under the Black Sea via Bulgaria to Italy. Gazprom and Italy's ENI SPA reached commercial terms on the project in December. Feasibility and marketing studies on the 30 billion cu m/year project are under way, to be completed by yearend. Initial plans call for construction to begin in 2009, with an in-service date of 2013.
Contact Christopher E. Smith at [email protected].