OAO Gazprom OGZD Gazprom and Wintershall - agreement on asset swap

  OAO Gazprom (OGZD) - Gazprom and Wintershall - agreement on asset swap

RNS Number : 2034R
OAO Gazprom
15 November 2012


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 

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 

"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.


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


                     This information is provided by RNS
           The company news service from the London Stock Exchange


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