Russian gas giant Gazprom has reportedly cancelled the Turkish Stream pipeline construction contract it had with Italian oilfield services contractor Saipem.

According to Russian Tass news agency, Gazprom, through its South Stream Transport BV subsidiary sent the cancellation notice to Saipem, citing inability to reach agreement on many working and commercial matters of the Turkish Stream project.

South Stream Transport did not immediately reply to an e-mail seeking confirmation, sent by Offshore Energy Today.

According to Bloomberg, this cancellation means that Saipem has lost a $2.2 billion contract.

Saipem had had contracts for pipe laying of the controversial South Stream pipeline contract in the Black Sea, which was supposed to carry Russian gas through the sea and make a landfall in Bulgaria.

The project was cancelled due to opposition from the EU. Gazprom then decided to redirect the pipeline and send its gas to Turkey.

In May this year, Saipem said that South Stream Transport BV was lifting the suspension of work under the contracts, and that Saipem “should commence works on the offshore pipeline in the Black Sea.”

Source: www.offshoreenergytoday.com

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