Gazprom and Bulgarian Energy Holding EAD sign Shareholders’ Agreement and Articles of Association for joint project company South Stream Bulgaria AD
RELEASE
Release
Today, in Sofia (Bulgaria) in the presence of Russian Prime Minister Vladimir Putin and Bulgarian Prime Minister Boyko Borisov, Alexey Miller, Chairman of Gazprom's Management Committee, and Maya Hristova and Jordan Georgiev, Executive Directors of Bulgarian Energy Holding EAD, signed the Shareholders’ Agreement and the Articles of Association for the South Stream Bulgaria AD joint project company established on a parity basis for the South Stream project implementation in the Republic of Bulgaria. The formal registration of the company will be completed before the end of November 2010.
Alexey Miller and Maya Hristova sign Shareholders’ Agreement for joint project company South Stream Bulgaria AD in presence of Vladimir Putin and Boyko Borisov. Photo by RIA Novosti
South Stream Bulgaria AD will engage in implementing the pre-investment stage of the project as well as financing, constructing and operating the gas pipeline on the Bulgarian territory.
“Today's signing of the documents with our Bulgarian partners confirms the mutual interest of the parties in meeting the growing needs of continental Europe for natural gas. Participation of Bulgaria in the South Stream project proves it is timely and necessary to create additional infrastructure of a trans-European scale,” Alexey Miller noted.
“South Stream project is of utmost importance for Bulgaria as well as for the European energy market in view of route diversification for natural gas supplies and increase of European energy security. The project itself with no doubt will have a positive effect on end users not only in Bulgaria but in Europe as well,” said Maya Hristova, Executive Director of Bulgarian Energy Holding.
“By the signed today Agreement for the South Stream project an important step has been taken towards the project execution and heading towards the intensive development phase. The project will precondition energy security increase, will ensure reliability and continuity of energy supplies to Europe and Bulgaria in particular,” said Jordan Georgiev, Executive Director of Bulgarian Energy Holding.
Background
Russian natural gas has been exported to Bulgaria since 1974 with 2.2 billion cubic meters supplied by Gazprom in 2009. At present, Gazprom is the only gas exporter to Bulgaria.
Gazprom transits gas to Turkey, Greece and Macedonia via Bulgaria. In December 2006 the existing Transit Contract between Gazprom еxport and Bulgargaz was extended from 2010 to 2030.
In January 2008 Russia and Bulgaria signed the Intergovernmental Agreement on Bulgaria's involvеment in the South Stream project.
On May 15, 2009 Gazprom and Bulgarian Energy Holding EAD signed the Agreement of Cooperation during the gas pipeline construction to transit natural gas across the Republic of Bulgaria as part of the South Stream project. The document sets the basic principles of interaction between the parties at the pre-investment stage of the project.
In July 2010 Russia and Bulgaria signed the Roadmap to perform the feasibility study for the Bulgarian section of the South Stream project. The Roadmap is a plan of top priority actions needed for the project implementation in Bulgaria.
In pursuance of the Roadmap, on October 25 Gazprom and Bulgarian Energy Holding EAD signed the Agreement on the feasibility study for the Bulgarian section of the South Stream project. On November 5, 2010 the parties initiated the open tender procedure for selecting a contractor to perform the feasibility study.
Bulgarian Energy Holding EAD was established in 2008 during reorganization of the state-run Bulgargaz Holding EAD. The company is fully state-owned.
Bulgarian Energy Holding manages assets of the companies engaged in power generation as well as production, transmission, storage and distribution of natural gas and other energy carriers.