The agreement outlines the conditions and deadlines for implementation by Gazprom and OMV on the Austrian section of South Stream, and stipulates that both parties will develop a feasibility study to evaluate all technical, legal, financial, environmental and economic parameters of the Austrian section.
Gazprom and OMV will also establish a joint engineering company which will design, finance, construct and operate the pipeline in Austria.
The South Stream Pipeline will travel 900 km under the Black Sea, transporting up to 63 Bcm/a of natural gas from Russia to South and Central Europe. The Austrian agreement follows similar intergovernmental agreements which have been signed with Bulgaria, Serbia, Hungary, Greece, Slovenia and Croatia.
Meanwhile, Russian Prime Minister Vladimir Putin has also announced that Electricite de France (EDF) will acquire a 20 per cent stake in the South Stream project. Currently Gazprom and Eni SpA each hold a 50 per cent stake in South Stream.