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Nabucco project partners sign Association and Subscription Agreement in Bucharest

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The partners in the Nabucco gas pipeline project signed on Tuesday, May 21, the Association and Subscription Agreement for potential investors to join the project, Minister-delegate for Energy Constantin Nita told a press conference.

'The meeting in Bucharest is the fifth of the Nabucco Committee and the last before the Shah Deniz Consortium makes its final decision. The European Energy Council meeting is due tomorrow [on Wednesday] in Brussels. Important decisions will be taken there too on the future of energy in the European Union. The freshly signed Association and Subscription Agreement is the underlying document for the operation of the Nabucco International Company after the Shah Deniz Consortium gives its assent. We thus also sent a message on the regional importance of the Nabucco project. The third point of the meeting was to affirm the partners' support for the project,' Constantin Nita declared.

The agreement signed in Bucharest sets forth the terms under which other investors can join and subscribe with the project.

The agreement sets the foundation for investors' getting involved in the Nabucco project. We established the terms under which investors can participate in the association and stock subscription. The entire groundwork is now in place in the event that Shah Deniz picks it as the preferred gas shipment route. This is an important step for the selection of the final route, which will take place at the end of June 2013. If Nabucco West is selected, the potential investors can acquire 50% of the shares. Today we succeeded in making a decision on the governance of this company. All the conditions are now in place for Nabucco West to be carried out efficiently, successfully, and on time, said Nabucco Steering Committee chairman Hans-Peter Floren.

The Nabucco project is aimed at enabling access to natural gas in the second development phase of the Shah Deniz deposit and shipping it to the European market. Romania is actively participating in the implementation of the project through National Gas Transmission Company Transgaz SA, as well as on a governmental level, by the signing of the Intergovernmental Agreement on the Nabucco Project Development on July 13, 2009 and of the Project Support Agreement on June 8, 2011.

The Nabucco pipeline is the shortest route to access the markets of South Eastern Europe. The Nabucco Company has officially submitted its offer for the gas resources in the Shah Deniz deposit's second development stage. The Shah Deniz Consortium, which operates Azerbaijan's largest offshore gas field, was to conduct the final evaluation of the transportation options received and make an informed decision on the preferred export route to Europe. The final decision on the European pipeline is expected to be made by end of June 2013.

 

 

Ponta: Nabucco West must be supported for interests in the area and for EU development interest

 

Romania firmly supports the building of the Nabucco pipeline although, when compared with other countries in the area, this country's dependence on the gas that would be carried through this project is lower, Premier Victor Ponta told the meeting of the Nabucco Committee that was held in Bucharest.

'We are only a day away from the European Council, the one in which strategic decisions must be made on Europe's strategic future and, in this context, the Nabucco West project is, from Romania's point of view - and I am here today to say this once again very clearly - is a strategic project, which implies economic development for all the beneficiary countries and for the region, which is an important opportunity for Romania, but also for all the countries involved in this project, which is also a sustainable project from an economic point of view as I think that the economic sustainability of a project is as important as the strategic interest,' said Victor Ponta.

He appreciated that carrying out this project is a development chance for the entire region and the possibility to diminish the dependence on Russian gas.

'Romania has been involved and still is, through the agency of Transgaz, is one of the countries firmly supporting the carrying out of this project even if, when compared with other countries in the region, our dependence on the gas that would be carried through this project is lower, but on a medium and long term, for Romania, for the region, as, look, this year we shall have the possibility to carry gas to other countries in the region too - and I am first referring to the Republic of Moldova - therefore for the entire region the carrying out of this project is a chance for development and energy safety: diminishing the dependence from one single producer. Certainly, for Romania and for the entire region, for Europe, it is a major strategic interest,' said the Premier.

In context he made an appeal to all the countries and companies involved to prove determination and a clear decision to support the project.

'Today in Romania's Parliament, in the Chamber of Deputies, which is the decision-making chamber, they will cast the final vote on the Romanian special law on the Nabucco project and I think that this political message from Romania, doubled by the message all participants will surely convey today, will be clearly received as a common outlook on the project. Even if tomorrow, during the European Council, there are countries that support the Nabucco project and there are countries that, let us say, have reserves to this route, I think it is the duty of the EU to support a correct outlook and a sustainable outlook and the Nabucco West project is such a project and it must certainly be supported, not only for the interests of the countries in the area, but also for the development interest of the EU,' said Ponta.

Attending the meeting will be senior officials from Romania, Austria, Hungary, Bulgaria and Turkey, representatives of the Nabucco shareholding companies and of some international financial institutions.

The Bucharest meeting planed to mark the progress made in developing Nabucco and reconfirmed the political support the project benefits from the partner states, at a crucial stage in the assignment of the natural gas volumes from the Shah Deniz field.

T ucco International Company and the Shah Deniz Consortium aimed at achieving the two projects without delay and the Nabucco Company's putting forward the official tender for the resources relating the second phase of the Shah Deniz deposit exploitation. A final decision of the Shah Deniz Consortium is expected in in June 2013.

After the meeting in Kayseri, Turkey, in 2011, in which the Nabucco Committee was set up in line with the Nabucco Intergovernmental Agreement's Article No 12, the committee held meetings in Vienna (2012), Sofia and Budapest (2013).

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