The Gazprom Headquarters hosted today a working meeting of Alexey Miller, Chairman of the Company’s Management Committee, Dimitar Gogov, Executive Director of Bulgargaz and Galina Tosheva, Member of the Board of Directors and Executive Director of Bulgarian Energy Holding.

The parties discussed the progress with the Russian-Bulgarian cooperation in the petroleum sector. Special emphasis was placed on the measures of further enhancing the security and safety of Russian gas export to Bulgaria and other European countries.

In this context the parties paid special attention to the project of the South Stream gas trunkline construction. A common opinion was expressed regarding the necessity to boost the implementation pace of the project, particularly its Bulgarian section.

The meeting also deliberated on the creation concept and operation mechanism for a joint venture between Gazprom and Bulgarian Energy Holding within the preparation of the Feasibility Study for the South Stream construction in Bulgaria.

Consideration was also given to the opening of negotiations on switching to direct contractual relations when supplying Russian gas to Bulgaria.

Background

Russian natural gas has been exported to Bulgaria since 1974. In 2007 the gas supply volume by Gazprom export accounted for 2.8 billion cubic meters. At present, Gazprom is the only gas exporter to Bulgaria.

Gazprom transports gas to Turkey, Greece and Macedonia via Bulgaria.

Based on the Agreement of April 27, 1998 Gazprom export and Bulgargaz have signed the relevant Transit Contract. In December 2006 the Contract was extended from 2010 until 2030.

On June 23, 2007 Gazprom and the Italian concern ENI signed the Memorandum of Understanding for the South Stream project execution.

The total length of the Black Sea section will be around 900 km, with the maximum depth exceeding 2,000 m and design capacity averaging 31 billion cubic meters. The section is planned for commissioning in 2013.

In January 2008 Russia and Bulgaria signed the intergovernmental agreement stipulating Bulgaria’s entry in the South Stream project.