WAFF | World's Armed Forces Forum: French want to join the South Stream project! (Ehm Mistral :) )

UPDATE 1-EDF says in talks to join South Stream pipeline
Wed Sep 16, 2009 4:48pm IST

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* CEO sees no agreement likely soon

* Confirms 5 billion euro asset sales by end 2010

(Adds detail on South Stream and asset sales)

By Marie Maitre

PARIS, Sept 16 (Reuters) - French power group EDF (EDF.PA: Quote, Profile, Research) is in talks to join Russian Gazprom's (GAZP.MM: Quote, Profile, Research) South Stream pipeline but does not expect an agreement to be reached soon, Chief Executive Pierre Gadonneix said on Wednesday.

South Stream will be built under the Black Sea and is seen as the main competitor to the EU- and U.S.-backed Nabucco pipeline, which aims to reduce Europe's energy dependence on Russia by securing gas from the Caspian region.

Russia, which supplies a quarter of Europe's natural gas, wants to build gas supply routes quickly to bypass Ukraine and other ex-Soviet states after disputes with Kiev over transit payments in recent years disrupted flows.

Italian oil group ENI (ENI.MI: Quote, Profile, Research) is already involved in the South Stream project.

"The idea that we could be with the Italians on the sides of Gazprom in a southern project is very good news for th

"We are very far from it (an agreement). This is a project but clearly we have had discussions on this for a while, and this is good news for France and EDF," he said.

Russian newspaper Kommersant reported on Tuesday that EDF could take a 10 percent stake in the project and that Gazprom and EDF would soon sign a memorandum of understanding.

Another French company, GDF Suez (GSZ.PA: Quote, Profile, Research), is planning to take a 9 percent stake in Russia's Nord Stream, a pipeline which will go to Germany under the Baltic Sea.

"It would be good for France to be present both in the northern and the southern projects," Gadonneix said referring to Nord Stream and South Stream pipelines.

Gadonneix also told French members of parliament that EDF would meet a target to divest 5 billion euros ($7.34 billion) worth of assets by the end of 2010 as expected.

"The asset sale programme is ongoing. We are working in a very precise manner on divestments, be it in France or abroad. We will be meeting the 5 billion programme over two years," Gadonneix said.

The group's debt stood at 24.5 billion euros at the end of 2008, up from 16.3 billion a year earlier following the acquisition of British Energy. (Editing by Lin Noueihed) ($1 = 0.6810 euro)

http://in.reuters.com/article/oilRpt/idINLG9540520090916?pageNumber=2&virtualBrandChannel=0

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French want to join the South Stream project! (Ehm Mistral :) )

Re: French want to join the South Stream project! (Ehm Mistral :) )

@Landos)