The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Dusan Bajativic, Director General of state-owned company Srbijagas.

The parties discussed the current issues of cooperation in the oil and gas sector, paying special attention to the feasibility study development for the South Stream gas pipeline section in the Republic of Serbia, as well as agreed upon the steps aimed at creating a joint venture as part of the project. The meeting also discussed the prospects for UGS capacities development for higher efficiency of Russian gas supply to the Republic and its further transit to third countries.

Background:

Founded on October 1, 2005 by the Government of the Republic of Serbia within the reorganization of the state-owned company Naftna Industrija Srbije (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 Neft signed the Agreement on the acquisition terms for a controlling stake (51per cent) in state-owned company Naftna Industrija Srbije (NIS).

On February 25, 2008 Gazprom and Srbijagas signed the Agreement of Cooperation to implement the 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.

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