MOSCOW, January 20. /TASS/. The agreement on the South Stream gas pipeline project has been dissolved, Gazprom reported on Wednesday.

The South Stream project worth 15.5 bln euro implied annual supplies of 67 bln cubic meters of gas to Europe. Gazprom’s subsidiary company South Stream Transport B.V. was project operator.

According to the report, Gazprom board of directors approved the agreements concluded by Gazprom with South Stream Transport B.V. on termination of the contract of suretyship regarding obligations of Gazprom Export on the gas transportation agreement from October 2, 2013.

South Stream Transport B.V. agreed to free Gazprom from all obligations under the contract of suretyship regarding obligations of Gazprom Export on the gas transportation agreement from October 2, 2013, and dissolve the contract, the report said.

Earlier Bulgarian newspaper Standart reported that the works on the South Stream project will be resumed within a few weeks as wrote that "Moscow is returning to the "South Stream" pipeline, Bulgarian Prime Minister Boyko Borisov told his immediate surroundings." The project on construction of the natural gas pipeline is likely to be one of the items on the agenda of the upcoming meeting of the Russian-Bulgarian intergovernmental commission on commercial and economic and scientific and technological cooperation, which is due to be held in Sofia in end-January after a 5-year break, Standart reported.

However, Russia’s Energy Minister Alexander Novak said the construction project has been halted and no negotiations are currently underway.

On December 1, 2014 President Vladimir Putin said Russia will not implement the South Stream project amid current environment. Chairman of Gazprom's Management Committee Alexey Miller said the project was no longer relevant.

In December 2014, Saipem, a subsidiary of Italian energy company ENI, said it had received a notice on suspension of the South Stream.

South Stream Transport B.V. was set up for the construction of the offshore gas pipeline. However, after Gazprom decided to terminate the project it acquired the stakes of Eni, EdF and Wintershall in the project.

It was implied that part of assets of South Stream Transport could be used for construction of the Turkish Stream.