Russia's OAO Gazprom (GAZP.RS) extended a formal invitation to the Romanian authorities to join the South Stream pipeline project and to expand natural-gas cooperation beyond Romania's borders, Economy Minister Adriean Videanu said Friday, news agency Mediafax reports.

"Gazprom's Deputy Chairman Alexander Medvedev has handed me the invitation to join the South Stream project, an invitation that was also forwarded to [pipeline operator] Transgaz (TGN.RO)," Videanu told a news conference.

A Gazprom delegation met the Romanian authorities in Bucharest Wednesday.

Videanu said Romania will analyze Gazprom's offer with "great interest" and the Russian company was given pertinent data for their studies in the sector.

The Russian-backed South Stream pipeline project is regarded as the main rival of the Nabucco project, in which Romania has already pledged to participate.

After completion, South Stream will transport Russian gas to the Black Sea area via Bulgaria and further to Italy and Austria.

On the other hand, Nabucco is expected to help Europe break free from Russia's influence in the natural-gas sector. The pipeline is scheduled to deliver approximately 31 billion cubic meters of gas annually from the Caspian Sea to Central Europe via Turkey and Romania, bypassing Russia.

Both projects are due for completion sometime in 2015.

"The Russian delegation was willing to discuss about South Stream while fully aware that Nabucco is our priority. They've assured us that South Stream is not Nabucco's rival in any way, but a complementary project," Videanu said.

He added a delegation of Russian experts will come to Bucharest in March to finalize the talks.

Gazprom is also interested in working with Romania's gas producer Romgaz Medias to explore for natural-gas deposits outside Romania, including on Russian territory, Videanu said.

The minister said Gazprom could deliver natural gas to Romania directly via Romgaz, without third-party distributors.

"The company officials were open to start negotiations, once the agreements with Imex Oil and WIEE expire in 2012," Videanu said.

Currently, Gazprom delivers natural gas to Romania solely via the two intermediaries.

Another discussion topic between Gazprom and Romanian officials was the cooperation between the Russian company and Romgaz to build gas-storage facilities in Romania with a total capacity of between 2 billion cubic meters and 6 billion cubic meters.

"The talks are ongoing," Videanu said.

Agency Web site: http://www.mediafax.ro