OAO Gazprom (OGZD) - Gazprom and Wintershall - agreement on asset swap RNS Number : 2034R OAO Gazprom 15 November 2012 RELEASE Gazprom and Wintershall sign basic agreement on asset swap November 14, 2012, 12:00 Alexey Miller, Chairman ofthe Gazprom Management Committee and Kurt Bock, Chairman ofthe BASF Board ofExecutive Directors signed atthe Gazprom headquarters today abasic agreement onasset swap. The legally binding document provides for major terms and conditions for the asset swap deal under the project for joint development ofthe Achimov deposits inthe Urengoy oil, gas and condensate field. The final agreements are expected tobemade in2013. According tothe document, Wintershall may acquire 25per cent plus one share inthe new joint venture ondeveloping blocks 4Aand 5Ainthe Achimov deposits ofthe Urengoy field. Inaddition, the Agreement provides for Gazprom toreceive a50per cent stake inWINZ, which runs natural gas exploration and production projects inthe North Sea, and increase its stakes ingas trading and storage companies ofWINGAS Group to100per cent, aswell asinWIEH and WIEE-to100per cent. "Gazprom and BASF have confirmed their common aspiration topromote the strategic partnership inthe international energy market. Byincreasing stakes ingas trading and storage companies wewill continue our successful joint efforts onsecuring reliable gas supplies toEurope. The agreements reached ingas exploration and production projects expand the geographic reach ofour mutual activities that started from production projects inRussia,"said Alexey Miller. "The asset swap deal isconsistent with our strategy toexpand the extraction and production ofcrude oil and natural gas-through organic growth and targeted acquisitions. With this step, weare further developing our more than 20year partnership: Gazprom will become more active inthe natural gas trading and storage business and wewill jointly expand the production atthe source,"said Kurt Bock. Background BASF is the world's leading petrochemical company. Its operational activities are focused on the following segments: chemicals, plastics, plant protection products as well as hydrocarbons extraction and transportation. Being a wholly owned subsidiary of BASF, Wintershall Holding operates in the power generation industry. Gazprom and Wintershall Holding set up joint ventures: WINGAS, WIEH and WIEE. Wintershall Erdgas Handelshaus Zug (WIEE) is a joint venture of Wintershall (50 per cent) and Gazprom (50 per cent). The company is focused on Russian natural gas supplies to the countries of Southeastern Europe and analysis of potential investments in the national gas markets of these countries. Wintershall Erdgas Handelshaus (WIEH) is a joint venture of Wintershall (50 per cent) and Gazprom (50 per cent). The company operates in the gas trading sector and performs natural gas purchasing, transportation, storage and marketing in various European countries. WINGAS is a joint venture of Wintershall (50 per cent plus one ordinary share) and Gazprom (50 per cent less one ordinary share). WINGAS is focused on natural gas trading. The company supplies hydrocarbons to customers in Germany, Belgium, France, the UK, the Netherlands, Austria, the Czech Republic and Denmark. WINGAS customers include municipal and regional gas suppliers, industrial enterprises and power plants. Focused on geological exploration and hydrocarbons production offshore the North Sea, Wintershall Noordzee (WINZ) is part of Wintershall Holding Group. BASF and Wintershall Holding partner Gazprom in developing the Yuzhno-Russkoye field and the Achimov deposits in the Urengoy field as well as constructing the Nord stream and the South Stream gas pipelines. The Achimov deposits lie at depths of nearly 4,000 meters and feature abnormally high formation pressures (over 600 Ata) and heavy paraffins presence. Geological exploration has proven the Achimov deposits productivity across a vast area of the Nadym-Pur-Taz region. The bulk of recoverable hydrocarbon reserves of the Achimov deposits are accumulated in the Urengoy oil, gas and condensate field with Gazprom Dobycha Urengoy (Gazprom's fully-owned subsidiary) being the subsurface user. The Achimov deposits contained in Gazprom Dobycha Urengoy owned fields alone account for more than 1 trillion cubic meters of natural gas and 200 million tons of gas condensate (category C1). In July 2003 Gazprom and Wintershall Holding (wholly-owned subsidiary of BASF) set up the Achimgaz joint venture to develop the first pilot block of the Achimov deposits in the Urengoy field. In 2008 Achimgaz brought the block into pilot operation. InformationDirectorate, OAOGazprom BASF Press contact +7495 719-10-77 www.basf.com +7495 719-90-08 firstname.lastname@example.org This information is provided by RNS The company news service from the London Stock Exchange END AGRBABLTMBJBMBT -0- Nov/15/2012 09:44 GMT
OAO Gazprom OGZD Gazprom and Wintershall - agreement on asset swap
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