BASF and Gazprom agree to assets exchange
The Head of the German concern BASF, Kurt Bock and the Head of the Russian gas monopolist Gazprom, Alexei Miller have signed a legally binding framework agreement on assets exchange, the German company reports.
Wintershall (100% subsidiary of BASF) will receive 25% plus 1 share in the 4th and 5th blocks of the Achimov deposits of the Urengoi field in Western Siberia, the RIA Novosti reports.
Gazprom will receive 100% in the present joint ventures with Wintershall on trade (Wingas/WIEH) and storage of gas and 50% in the company Wintershall Noordzee B.V.
On the assumption of receiving of all necessary approvals it is supposed that the deal will be concluded by the end of 2013.
In June of this year, it became known that the German company offered Gazprom its new assets for the exchange; before, the framework agreement on assets interchange, defined in October of 2011, provided for the 25% participation of Wintershall in the development of the 4th and 5th sites with earn-in during the second stage up to 50%. It was supposed that in exchange for this Gazprom would receive 50% share in oil and gas projects, implemented by Wintershall in the North Sea.
The German company notes that it seeks the further increase of the oil and gas production and withdrawal from the gas trade and storage business. As a result of the assets interchange, Wintershall will leave the joint (with Gazprom) trade companies - Wingas, WIEH (Wintershall Erdgashandelshaus Berlin) and WIEE (Wintershall Erdgashandelshaus Zug), and also the operator of gas storages – Astora, which owns underground gas storages Rehden and Emgum in Germany, as well as Haidach in Austria. Gazprom will also receive 50% in Wintershall Noordzee BV, which is engaged in the exploration and production of oil and gas in the Southern North Sea (the Netherlands, UK and Denmark).
Last year, these assets had 8.6 billion euros of BASF’s sales volumes and 350 million euros of the operational profit. The German company notes that the partnership with Gazprom in the field of the construction and operation of gas pipelines will continues without changes.
Wintershall will receive 25% plus 1 share in the 4th and 5th blocks of the Achimov deposits and earn-in up to 50%. In accordance with the development plan, the resources of these blocks make up 274 billion cubic meters and 74 million tons of gas condensate. The total annual production in peak period will be about 8 billion cubic meters. The start of the production is scheduled in 2016.
http://www.oilcapital.ru/company/185660.html
Translated by Svetlana Kyrzhaly
