<a href=Saipem Vessel” height=”199″ src=”https://www.offshore-technology.com/wp-content/uploads/image-digitalinsightresearch/Archive/nri/offshore/news/Feb%2016/Saipem%20Vessel.jpg” style=”padding: 10px” width=”301″ />

Italy-based pipe-laying company Saipem has filed a €759m ($823m) arbitration claim against Russian company Gazprom for cancelling a contract to lay a natural-gas pipeline under the Black Sea.

The company initially filed the claim against Gazprom’s subsidiary South Stream Transport before the International Chamber of Commerce in Paris in November 2015, with documents outlining this released last month.

In 2014, plans to build the South Stream link to Bulgaria were scrapped by Russian President Vladimir Putin as the EU opposed the project.

An alternative route to Turkey, known as the Turkish Stream, was proposed and cancelled in 2015 after the two countries took opposing positions in the Syrian conflict. Relations soured further after Turkey was accused of shooting down a Russian military aircraft.

Saipem secured two contracts valued €2.4bn to work on the South Stream pipeline project.

"The first gas was initially expected to be supplied through the South Stream in late-2015."

A €2bn agreement was later transferred to the Turkish Stream pipeline and then cancelled by Gazprom.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

During the past three years, Gazprom reportedly invested around $20bn in the project, including on expanding gas network in Russia in order to feed the link.

South Stream is Gazprom’s global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic metres across the Black Sea to Southern and Central Europe.

The first gas was initially expected to be supplied through South Stream in late-2015 with full capacity scheduled for 2018.

Construction on the South Stream gas pipeline started near Anapa in December 2012 in the Krasnodar Territory.


Image: Saipem 7000 pipe-laying vessel. Photo: courtesy of Gazprom.