Oil & Gas
Home / Issue Archive / 2007 / November #11 / Gazprom and BASF Place Yuzhno-Russkoe field in Operation
№ 11 (November 2007)
Gazprom and BASF Place Yuzhno-Russkoe field in Operation
On 18 December at 10.00 AM the Yuzhno-Russkoe (South Russian) field located in the Yamal-Nenetsk Autonomous District was officially placed in operation
Under the terms of the assets exchange deal, the German company Wintershall, subsidiary of BASF, got a 25% minus one share in the capital of Severneftegazprom, the holder of the license for South Russian oil and gas field in Western Siberia. Besides, Wintershall got one non-voting preference share in the authorized capital of Severneftegazprom. All in all, BASF’s share is 35%. The share of Gazprom in the distribution company Wingas increased from 35% to 50% minus one share; Gazprom also got a 49% share in the associated company of Wintershall with production in Lybia. E.ON Ruhrgas, which offered Gazprom some power generation and undergound gas storage assets in exchange for participation, also prepares to enter the project.
“It is - 40°C here but we, the team of Severneftegazprom and our colleagues journalists, feel warm thanks to this significant event”, said the participants of the TV-bridge with Yamal that accompanied the official ceremony at Gazprom’s headquarters in Nametkina str., 16. When Dmitry Medvedev, Chairman of the Board of directors at Gazprom, hit the symbolic button together with Frank-Walter Steinmeier, the Minister of Foreign Affairs of Germany, a flambeau light shot up in the sky 3,500 km away from Moscow.
By 2009 the field will reach the estimated capacity of 25 bln cubic meters of gas annually. 34 wells have been prepared for operation so far. Next year about 15 bln cubic meters of gas supplies will be pumped in the main pipeline. The cost of development project is estimated as €2 bln.