PRZOOM - /newswire/ -
Ludwigshafen, Germany, 2011/10/28 - Today a framework agreement has been signed in Ludwigshafen by Alexey Miller, Chairman of the Management Committee of OAO Gazprom, and Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE - BASF.com. DE000BASF111
• Joint natural gas production from the Achimov formation of the Urengoy field to be expanded to blocks IV and V;
• Gazprom to receive working interests in fields in the British and Dutch North Sea.
Today a framework agreement which sets out the terms for the planned asset swap to further expand the successful cooperation has been signed in Ludwigshafen by Alexey Miller, Chairman of the Management Committee of OAO Gazprom, and Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE. According to the agreement, two further blocks of the Achimov formation of the Urengoy field in western Siberia will be developed by the two companies. Wintershall, a wholly owned subsidiary of BASF SE, will initially hold a working interest of 25 percent plus one share in the development of blocks IV and V. Wintershall retains the option of increasing this shareholding to 50 percent. The framework agreement stipulates that Gazprom will receive interests of equal value in selected exploration and production projects by Wintershall in the North Sea (Netherlands, UK). Gazprom will ultimately receive half of Wintershall’s shares in these concessions.
“The joint production between our oil and gas subsidiary Wintershall and Gazprom from the Achimov deposit is an impressive example of our long-standing success model: cooperation in the spirit of partnership and complementing each other’s strengths along the entire value adding chain. Further expanding our shared production is an important step in our partnership with Gazprom, which stretches back over 20 years,” said Dr. Kurt Bock. “The constructive partnership between Gazprom and BASF/Wintershall enables us to tackle technically complex and ambitious projects. Together with Wintershall, we want to expand gas production from the Achimov layers of the Urengoy deposit and cooperate in E&P projects in the southern North Sea, where Wintershall has been operating successfully for decades, for our mutual benefit,” said Alexey Miller.
The cooperation between BASF subsidiary Wintershall, Germany’s largest producer of crude oil and natural gas, and Gazprom, the world’s largest producer of natural gas extends from the exploration and production of natural gas in West Siberia to transportation through the Nord Stream pipeline and the sale of the natural gas in Germany and Europe by the jointly owned natural gas trading company WINGAS. With the existing Siberian production operations in Novy Urengoy and Yuzhno Russkoye, BASF and Gazprom already help to secure Europe’s energy supply together.
Michael Sasse - Wintershall
P: +49 561 301-3301 / F: +49 561 301-1321 / E: presse[.]wintershall.com.
P: +7 (495) 719-10-77; +7 (495) 719-49-37 or +7 (495) 719-47-36 / E: pr[.]gazprom.ru
BASF (basf.com) is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals as well as oil and gas. As a reliable partner BASF helps its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. In 2010 BASF posted sales of approx. € 63.9 billion and employed around 109,000 staff at year end. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).
About OAO Gazprom
OAO Gazprom (gazprom.com) is the world's leading natural gas company specializing in the exploration, production, transport, storage, processing and marketing of natural gas and other hydrocarbons as well as energy generation. Gazprom's gas reserves are estimated at 29 TCM, i.e. around 70% of Russia's and 18% of the world's gas reserves. Gazprom is responsible for around 80% of Russian and 15% of global natural gas production. Gazprom has a 26% share of gas supplies on the European market and exports to 31 countries.
Wintershall Holding GmbH (wintershall.com), based in Kassel, Germany, is a wholly-owned subsidiary of BASF in Ludwigshafen. The company has been active in the exploration and production of crude oil and natural gas for over 75 years. Wintershall deliberately focuses on selected core regions, where the company has built up a high level of regional and technological expertise. These are Europe, North Africa, South America, as well as Russia and the Caspian Sea region. In addition, these operations are complemented by the company's growing exploration activities in the Arabian Gulf. The company employs more than 2,000 staff from 35 nations and is now Germany's largest crude oil and natural gas producer. With its jointly owned subsidiaries with Russia's Gazprom, WINGAS and WINGAS TRANSPORT, the BASF subsidiary is also an important gas supplier on the German and European market.
Forward-looking statements and forecasts
This press release contains forward-looking statements based on current expectations, assumptions and forecasts by the board of executive directors, as well as on the information currently available to that board. Forward-looking statements are not deemed to be guarantees of the future developments and results set out therein. Future developments and results are in fact dependent on a large number of factors; they contain different risks and imponderables and are based on assumptions that may not be accurate. We do not assume any obligation to update the forward-looking statements made in this press release.