Blue Stream Gas Pipeline Sea Section Project

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In February 1999, the Russian-Italian Blue Stream pipeline B.V. Company, a joint venture between Gazprom and ENI, entered into a memorandum of understanding with the Government of Russia and Turkey to develop the Blue Stream Gas Pipeline Project on a build-own-operate (BOO) basis. The Blue Stream Gas Pipeline project provided the Russian natural gas directly to Turkey going under the Black Sea. In October 2002, the construction of the Blue Stream Gas Pipeline, connecting offshores of Turkish and Russian Black Sea, was completed. The Blue Stream Pipeline B.V. Company was a joint venture between Gazprom of Russia and ENI of Italy where each owned a 50% stake. Under the agreement, this joint venture acted as the owner of a sea section of the gas pipeline. The land section of the gas pipeline was owned and operated by Gazprom. The Blue stream pipeline was 1213km long, and consisted of three sections: 1. Russia’s land section was 373km-long going from the town of Izobilnoye, Stavropol area, up to the settlement of Arkhipo-Osipovka, Krasnodar area, and to the Black Sea coast. 2. Marine section was 396-km-long going from the settlement of Arkhipo-Osipovka of the Krasnodar area (Russia) up to the Durusu terminal located 60 kilometers off the town of Samsun (Turkey) 3. Turkey’s land section was 444-kilometers-long going from the town of Samsun to Ankara. The total construction cost of the project was estimated at US$1.7 billion for the sea section, and the project reached financial closure in May 2001. http://www.gazprom.com/eng/