(MENAFN- Arab News) MILAN: Italian oil contractor Saipem has been asked by Gazprom to start work on a pipeline under the Black Sea months after being forced to halt work on another project for the Russian energy giant.
Saipem won contracts from Gazprom last year worth 2.4 billion euros ($2.7 billion) to build a stretch of the South Stream pipeline to carry gas from Russia to Bulgaria.
But it had to stop work when the project was shelved in the face of objections from the European Union which imposed sanctions on Moscow for its annexation of Crimea and its role in the conflict in eastern Ukraine.
Gazprom has since said it will build an alternative pipeline called Turkish Stream that will carry Russian gas under the Black Sea to Turkey.
'Saipem ... has received notice from the client South Stream Transport BV that suspension of the work has been lifted' the oil contractor said in a brief statement.
South Stream Transport BV is controlled by Gazprom.
Earlier on Friday the head of Gazprom said a decision had been taken to start building the Turkish Stream pipeline and that preparations were under way to build the undersea stretch of the pipeline.
Sources told Reuters in April that Saipem was in pole position to also win contracts on the Turkish Stream project if it went through.
Gazprom plans to supply up to 63 billion cubic meters of gas per year via Turkish Stream and create a gas hub on the Turkish border with Greece.
Shares in Saipem 43 percent owned by Italian oil major Eni ENI.MI fell sharply in December after news the South Stream project had been suspended.
Also in December Eni put plans to sell down its stake in its subsidiary on hold due to unfavorable market conditions.