Kuala Lumpur(Malaysia) hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Marcel Kramer, Chief Executive Officer of South Stream Transport AG. The meeting was held as part of the 25th World Gas Conference.

The parties discussed the progress with the South Stream project as well as the action plan for its implementation before the year end.

In particular, Alexey Miller and Marcel Kramer reviewed the results of the action plan aimed at adopting the final investment decision on the project by mid-November 2012.

It was noted that great efforts were being actively made within the project progressing according to the approved schedule.

Based on the meeting results, Alexey Miller and Marcel Kramer agreed to proceed with preparations for the second meeting of South Stream Transport AG Board of Directors due in the next month.

Background

With a view to diversify the natural gas export routes Gazprom is implementing the project for construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

On September 16, 2011 the South Stream Transport shareholders signed the Agreement for the offshore section of the project. Pursuant to the Agreement, the stakes in the offshore gas pipeline project are distributed as follows: Gazprom – 50 per cent, Italian Eni – 20 per cent, German Wintershall Holding and French EDF – 15 per cent each.

In the third quarter of 2011 the Consolidated Feasibility Study of South Stream was finalized and included the feasibility study of the offshore section and feasibility studies of the respective gas pipelines in the host countries of Southern and Central Europe.

On December 30, 2011 Vladimir Putin, Prime Minister of the Russian Federation authorized Gazprom to speed up the launch of the South Stream project and to start its construction in 2012.

On January 20, 2012 Alexey Miller, Chairman of the Gazprom Management Committee approved a detailed action plan that would make it possible to start construction of the South Stream gas pipeline's offshore section in December 2012.

On April 12, 2012 Gazprom's foreign partners on South Stream Transport AG finally joined the project company.

First pipeline gas supplies are slated for the late 2015.