Gazprom in counter action against Saipem over S Stream termination

MOSCOW, Apr 7 (PRIME) -- Italy’s Saipem has received a 737 million euro counter- action from Russian gas giant Gazprom because of the cancellation the South Stream gas pipeline construction, Saipem said in an annual report on Friday.

”On March 10, 2017, South Stream Transport B.V., submitted a counter-memorandum, in which it demanded, apart from cancellation of accusations by Saipem, for a compensation amounting to approximately 541 million euros for an alleged information distortion which motivated the defendant to sign the contract with Saipem,” the company said referring to operator of the project controlled by Gazprom.

Gazprom also asked for an additional or alternative 196 million euro compensation for its losses in payments envisaged by the contract, arrears and assumed damage to the pipelines.

Saipem, part of Italy’s Eni group, said earlier in April that there is no reason for Gazprom to present a counter-claim.

In December 2014, Russia decided to construct Turkish Stream, a gas pipeline that could run to the Turkey–Greece border to replace South Stream, cancelled partially on E.U. demands, which was supposed to carry Russian gas to Europe bypassing Ukraine.

After Gazprom’s decision to focus on Turkish Stream, Saipem announced changes in the deal conditions which allow it to build the Turkish Stream sea part, but in July 2015, Gazprom terminated its contract with Saipem as the partners failed to agree on a range of issues.

Saipem submitted a 760 million euro lawsuit against South Stream Transport to the International Chamber of Commerce and later reduced the claim to 679 million euros.

End