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BASF, Gazprom Exchange Assets Worth USD 10.9 Billion
16 November 2012 , 09:41Neftegaz.RU1890
Yesterday German chemical company BASF said yesterday that it has signed a deal to swap assets with Russia’s Gazprom worth equivalent values of about USD 10.9 billion.
BASF said the transaction allows it to expand its oil and gas production and exit the gas trading and storage business.
Through the agreement, two additional blocks of the Achimov formation in the Urengoi natural gas and condensate field in western Siberia will be jointly developed. BASF subsidiary Wintershall will receive 25% of the Achimov blocks, with an option to increase to 50%.
The Russian mining authority said the two blocks hold a hydrocarbon resource of 274 billion m3 and 74 million metric tons of condensate. Total annual production of at least 8 billion m3 of natural gas is expected from the two blocks. Production is planned to begin in 2016.
In return, Wintershall will transfer entirely what is currently a jointly operated gas trading and storage business to partner Gazprom. This includes its 50% holdings in the gas trading companies Wingas, Wintershall Erdgashandelshaus Berlin, and Wintershall Erdgashandelshaus Zug and its shares in the gas storage facilities in Rehden and Jemgum, Germany, and Haidach, Austria, as well as storage operator Astora.
Gazprom also will receive a 50% share in the activities of Wintershall Noordzee, which is active in the exploration and production of oil and gas in the southern North Sea.
Wintershall and Gazprom will continue their partnership in construction, operation, and marketing of gas pipelines.
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