Gazprom and BASF have signed a basic agreement to swap assets of equivalent value. The transaction is to be completed by the end of 2013.
As a result, BASF will expand its production of oil and gas to exit the gas trading and storage business.
Also companies are looking forward joint development of two additional blocks of the Achimov formation of the Urengoy natural gas and condensate field in western Siberia. Wintershall, a 100% subsidiary of BASF, will receive 25% plus one share of the blocks IV and V in the Achimov formation with the ability to increase the share up to 50%.
In return, Gazprom will receive shares of Wintershall’s natural gas trading and storage business, it includes the 50% shares in the gas trading companies WINGAS, WIEH (Wintershall Erdgashandelshaus Berlin) and WIEE (Wintershall Erdgashandelshaus Zug), and it also includes shares in the natural gas storage facilities in Rehden and Jemgum (Germany), Haidach (Austria) and the gas storage operator astora GmbH & Co., which is the subsidiary of WINGAS.
Gazprom will receive other 50% in Wintershall Noordzee B.V., which is active in the exploration and production of oil and gas in the southern North Sea (Netherlands, UK and Denmark). Together the activities to be divested contributed 8.6 billion euro to sales and 350 million euro to income from operations of BASF Group in 2011.
“The asset swap is consistent with our strategy to expand the exploration and production of crude oil and natural gas – through organic growth and targeted acquisitions. With this step, we are further developing our more than 20 year partnership: Gazprom will become more active in the natural gas trading and storage business and we will jointly expand the production at the source”, – commented the agreement on asset swap Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.
“Through the agreement, Gazprom and BASF are confirming their strategic partnership on the international energy market. By increasing our share in the gas trading and storage business, we are continuing our successful activities to secure the supply of gas for Europe. The agreement on exploration and production extends the geographic dimension of our cooperation, which has already successfully started with production projects in Russia”, - Alexei Miller said.
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