Headed by Vlada Rusakova, Member of the Gazprom Management Committee, Head of the Department of Strategic Development, a Gazprom delegation paid a working visit today to the Republic of Serbia (the city of Novi Sad).

In the course of the visit, Vlada Rusakova met with Sasa Ilic, Acting Director General of state-owned company Srbijagas.

The parties coordinated the list of benchmarks and the work schedule required to develop the feasibility study for the South Streamgas pipeline section in the Republic of Serbia, as well as discussed the possible volumes of natural gas supplies to the country.

The feasibility study will be an integral part of the comprehensive feasibility study for the entire South Stream project embracing the territory of Russia, the Black Sea and the countries of Central and Southern Europe.

The parties agreed to hold the next meeting in November this year, in Moscow.

Background:

Founded in October 1, 2005, by the Government of the Republic of Serbia within the reorganization of state-owned company Serbian Oil Industry (NIS), Srbijagas is the Serbian state-owned company dealing with natural gas transmission, distribution and storage in Serbia.

On January 25, 2008, the Umbrella Intergovernmental Agreement for the South Stream Project and the Banatski Dvor UGS project was inked. In parallel, Gazprom Neftsigned the Agreement on the acquisition terms for a controlling stake (51 per cent) in state-owned Serbian Oil Industry (NIS).

On February 25, 2008, Gazprom and Srbijagas signed the Agreement of Cooperation to implement a gas pipeline construction project for natural gas transit across the territory of the Republic of Serbia.

The Agreement envisages the establishment of a joint venture to perform a feasibility study, as well as the construction and operation of an at least 10 bcmpa gas pipeline running across Serbia within the construction of the South Stream gas pipeline system.

A Joint Working Group will develop the feasibility study until the joint venture is set up.

On June 23, 2007, Gazprom and the Italian concern ENI signed a memorandum of Understanding for the South Stream project execution.

The total length of the Black Sea gas pipeline section will be around 900 km, the total depth – over 2,000 m, the design capacity – nearly 31 bcm. The South Stream offshore section is slated for commissioning in 2013.