OREANDA-NEWS. December 25, 2008.  The Kremlin saw the signing of the fundamental documents defining the Russian – Serbian partnership development in the energy sector in the presence of Dmitry Medvedev, President of the Russian Federation and Boris Tadic, President of the Republic of Serbia.

Alexey Miller, Chairman of the Gazprom Management Committee and Dusan Bajativic, Director General of Srbijagas state-owned company signed the Major Provisions of the Basic Cooperation Agreement on the construction of the South Stream gas pipeline and natural gas transit across Serbia, as well as the Memorandum of Understanding aimed at cooperating in the gas storage sector within the Banatski Dvor project.

The Basic Agreement forms the principles of cooperation between the parties at the pre-investment and the follow-up stages of the South Stream project. In particular, the Agreement sets the terms and the order for establishing, as well as the operating principles of the joint venture to be set up in the first quarter of 2009 in order to perform the investment rationale for the gas pipeline construction in Serbia and its subsequent operation. Gazprom will get 51 per cent in the joint venture and Srbijagas – 49 per cent.

In line with the Memorandum of Understanding aimed at cooperating in the gas storage sector the parties will perform an additional technical and economic assessment of the Banatski Dvor UGS project to lay the basis for the final investment decision to be adopted by the middle of 2009. In case positive results are obtained with the construction and operation review for the Banatski Dvor UGS facility, the parties will set up a joint venture with the following shareholding structure: Gazprom export – 51 per cent, Srbijagas – 49 per cent.

Pursuant to the accords fixed in the Intergovernmental Agreement of Cooperation in the oil and gas sector Alexander Dyukov, Chairman of the Gazprom Neft Board and Petar Skundric, Serbia’s Energy Minister signed a Purchase and Sale Agreement for a 51 per cent stake in Serbian Oil Industry (NIS).

“Serbia is one of our long-standing partners. We have been cooperating for 30 years now. Today we are facing new horizons and attractive prospects in terms of enhancing the integrated strategic cooperation.

Gazprom possesses all the resources required for upgrading the national energy complex and providing its effective functioning in the long term. By entering in NIS Gazprom will enable the Serbian oil industry not only to retain its positions, but to become the leader in the Balkan region.

The South Stream pipeline laying across the country and construction of a gas storage create extra conditions for transforming Serbia into a large European hub for natural gas transit and storage. The country will contribute significantly to securing gas supply reliability for entire Europe,” said Alexey Miller.