Alexey Miller, Chairman of the Gazprom Management Committee and Jurgen Hambrecht, Chairman of the BASF SE Board of Executive Directors signed in the presence of Russian Prime Minister Vladimir Putin a Memorandum of Understanding on the South Stream project, providing for participation of Wintershall Holding GmbH in constructing the gas pipeline offshore section.

The document outlines the basic terms, conditions and principles for the German company to join the offshore section of the project. For instance, the Memorandum identifies that Wintershall Holding GmbH will acquire a 15 per cent stake in South Stream AG, while Gazprom will retain 50 per cent.

The Memorandum also stipulates conclusion of new long-term contracts for natural gas supply to the joint venture company Wintershall Erdgas Handelshaus Zug AG (WIEE).

“Our Company and Wintershall have a long history of partnership that overcame such challenges as joint pre-development of the Achimov deposits in the Urengoy field and the Nord Stream gas pipeline construction. The interest of European energy majors in the partnership within the South Stream project proves significance and relevance of the project for Europe,” said Alexey Miller.

“With Gazprom and other European partners we have already shown how we can increase European supply security with natural gas through the Nord Stream Baltic Sea Pipeline. Together we are now strengthening the supply security in the south eastern EU member states, where Gazprom and Wintershall have been successfully involved in gas trading for many years. As economic growth in the region increases, so does the demand for gas. In the future, we can directly and reliably supply these customers via the South Stream pipeline,” said Dr. Jürgen Hambrecht.