Gazprom and ENI sign memorandum of understanding

Oil&Gas Materials 4 December 2009 11:50 (UTC +04:00)

Gazprom Chief Alexei Miller and ENI General Manager Paolo Scaroni signed a memorandum of understanding on the South Stream project today, RBC reported.

The document was signed as part of Russian President Dmitry Medvedev's visit to Italy.

The details of the document have not been disclosed, but the sides are said to have agreed on the French company Electricite de France (EdF) joining the project.

Gazprom official Sergei Kupriyanov explained to journalists that the document addresses EdF's joining South Stream.

"The agreement states that Gazprom and ENI support the French company joining the project, and agreed to process the deal as soon as possible," Kupriyanov said. He added that a trilateral agreement may be concluded within the next three months and EdF's participation has not been stated in the memorandum.

When asked what share EdF will receive in the project, he refrained from delving into details.

"It is better to refer these statements to the French company's representatives now," Kupriyanov said, noting that earlier EdF said 10 percent of the South Stream project will be transferred to the company from ENI's share.

On Nov. 27 Gazprom and EdF have reached agreements according which EdF will receive a 10-percent stake in the offshore segment of South Stream.