Gazprom suspents contract for offshore section of Turkish Stream

Gazprom subsidiary South Stream Transport BV has suspended a contract with Italy’s Saipem SpA for the construction of the first line of the offshore section of the Turkish Stream gas pipeline, Gazprom announced in a release.

According to the release, the cancellation notice sent to the Italian oil and gas industry contractor cited the failure to reach agreement on a number of issues related to the implementation of the Turkish Stream project.

- Other activities related to the implementation of the project continue, with South Stream Transport BV set to begin talks soon with potential contractors for the laying of the first line of the Turkish Stream pipeline - Gazprom's release reads.

The contract with Saipem for the construction of offshore section of the gas pipeline was signed in 2014 as part of the South Stream gas pipeline project. The value of this contract was USD 2.2 billion.

Russian President Vladimir Putin announced in December 2014 the decision to quit the South Stream pipeline project due to clashes with EU law. Gazprom decided to redirect the pipeline to Turkey.