The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Dimitar Gogov, Executive Director of Bulgargaz.

The meeting participants discussed the crucial issues of the bilateral cooperation as well as the prospects for the Bulgarian gas market development through Russia's presence in it. A focus was placed on the terms and conditions for the Russian gas supply to Bulgaria this year.

In addition, Alexey Miller and Dimitar Gogov considered the South Stream project status. It was highlighted that on March 23, 2012 the tender procedure would be completed by selection of the contractor to carry out spatial planning, environmental impact assessment and prepare project documents for the gas pipeline section in Bulgaria. The parties also confirmed their intent to adopt the final investment decision for the Bulgarian section of South Stream by this November.

Background

Russian natural gas has been exported to Bulgaria since 1974. In 2011 Gazprom Export supplied the country with 2.81 billion cubic meters of gas.

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.

In July 2010 Russia and Bulgaria inked the Roadmap to perform the feasibility study for the Bulgarian section of the South Stream project.

In pursuance of the Roadmap, on October 25, 2010 Gazprom and Bulgarian Energy Holding signed the Agreement on the feasibility study for the Bulgarian section of the South Stream project.

On November 13, 2010 Gazprom and Bulgarian Energy Holding signed the Shareholders Agreement and the Articles of Association for the South Stream Bulgaria AD joint project company (JPC) established on a parity basis for the South Stream project implementation in Bulgaria. The JPC was registered in December 2010.

On December 16, 2011 Gazprom and Bulgarian Energy Holding completed the legal procedures related to the feasibility study done by the contractor for the Bulgarian section of the South Stream gas pipeline.

Bulgargaz is a wholly-owned subsidiary of Bulgarian Energy Holding.