Background

South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic meters across the Black Sea to Southern and Central Europe for the purpose of diversifying the natural gas export routes and eliminating transit risks. The first gas will be supplied via South Stream in late 2015. The gas pipeline will reach its full capacity in 2018.

The offshore section of the South Stream gas pipeline will consist of four parallel lines, each longer than 930 kilometers, across the Black Sea from the Russian coast to the Varna Port in Bulgaria. Each line will be made up of over 75 thousand 12-meter pipes.

South Stream Transport B.V. is responsible for constructing the offshore section of the South Stream gas pipeline. The company's shareholding is split among Gazprom (50 per cent), Italian Eni (20 per cent), German Wintershall and French EDF (15 per cent each).

In January and March 2014 South Stream Transport signed contracts and placed orders with Russian, German and Japanese pipe plants for the supply of more than 150 thousand 12-meter pipes with a diameter of 813 millimeters (32 inches) for the first and second strings of gas pipeline's offshore section.

In March 2014 Italian Saipem was awarded a contract for laying the first string and developing landfall and shallow water sections for all four strings of the gas pipeline.

Allseas Group S.A. is a global leader in laying offshore pipelines and building underwater structures. The company is engaged in comprehensive projects implementation, including designing, supplies of materials and machinery, construction and start-up operations.

Saipem S.p.A. is a subsidiary of Italian oil and gas concern Eni and one of the world's largest oil and gas industry contractors having large fleet for conducting marine operations and laying offshore gas pipelines with various diameters at a range of depths.