Saipem wins 1 bln euro Nord Stream contract

MILAN, June 24 Tue Jun 24, 2008 8:33am BST

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MILAN, June 24 (Reuters) - Italian oilfield services company Saipem SpA (SPMI.MI) has won a contract worth more than 1 billion euros ($1.55 billion) to lay the Nord Stream gas pipeline, the company said on Tuesday.

The Nord Stream project will comprise two parallel 1,220 km (760 mile) pipelines that will link Vyborg, Russia, with Greifswald, Germany, across the Baltic Sea, Saipem said in a statement.

Each pipeline will have the capacity to carry about 27.5 billion cubic metres of gas a year.

Saipem will begin work in the first months of 2010. It expects to complete the first pipeline in the first half of 2011.

Laying of the second pipeline will take place in 2011 and 2012.

Nord Stream is a joint venture of Russia's Gazprom OAO (GAZP.MM), Germany's BASF/Wintershall BASF.DE, E.ON Ruhrgas AG EONG.DE and Dutch state pipeline operator Nederlandse Gasunie.

Saipem is 43 percent owned by Italian oil company Eni SpA (ENI.MI). (Reporting by Ian Simpson; Editing by Quentin Bryar)