RIA Novosti reported that Russia United Shipbuilding Corporation intends to create a joint venture with Italy Saipem to design ships for offshore oil and gas production.

The source was quoted as saying that the USC board is expected to approve the deal in March to April. The joint venture will be set up and start operating this year

Saipem was not available for comment while USC President Mr Roman Trotsenko confirmed the company's intention to set up the joint venture, without specifying the JV's ownership structure.

Mr Trotsenko said the venture would be a small engineering company with a staff of about 60 people working in Moscow and St Petersburg.

Milan based Saipem, which operates in 35 countries, designs underwater pipelines and platforms for offshore work and drilling rigs. The company is one of the contractors for the Nord Stream pipeline intended to deliver Russian natural gas under the Baltic Sea to Europe and the Sakhalin-II oil and gas project in Russia Far East.

Mr Mikhail Pak from Aton investment group was quoted as saying that partnership with Saipem will help USC regain its lost engineering potential.

(Sourced from RIA Novosti)