OAO Gazprom (OGZD) - Gazprom and Wintershall - agreement on asset swap
RNS Number : 2034R
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
"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
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
InformationDirectorate, OAOGazprom BASF Press contact
+7495 719-10-77 www.basf.com
This information is provided by RNS
The company news service from the London Stock Exchange
AGRBABLTMBJBMBT -0- Nov/15/2012 09:44 GMT
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