Meeting of Coordinating Committee for strategic Cooperation between Gazprom and BASF AG held
Over 19 to 21 July, Hamburg hosted a Meeting of the Coordinating Committee for Strategic Cooperation between Gazprom and BASF, presided by Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee and Dr. John Feldmann, Member of the Board of Executive Directors of BASF AG.
The Coordinating Committee Members and Working Groups Heads presented their reports on the current state of affairs in projects and programs being implemented by Gazprom and Wintershall, a BASF 100 percent subsidiary. The Meeting highly appreciated the joint gas business development in Europe, primarily, the activities aimed at gearing up for the NEGP construction and Germany-based gas transmission infrastructure expansion for the purpose of boosting supplies to sales markets.
A focus of the meeting fell on Achimgaz (a Gazprom and Wintershall joint venture) and the development of the 1st pilot play of the Achimov deposits at the Urengoy field. The parties expressed their satisfaction with the progress achieved and stated that drilling operations were to start in 2006 at the field.
The parties also addressed the outlook of cooperation in gas geological exploration and development in Russia and other countries, the Yuzhno-Russkoye field development inclusive.
Ultimately, the Coordinating Committee discussed issues of interaction between Gazprom and Wintershall in experience sharing, personnel training and sci-tech cooperation.
BASF AG is a leading chemical corporation in the world, running business in the chemicals, synthetic materials, plant protection goods as well as oil and natural gas sectors.
Wintershall AG, a BASF 100 percent subsidiary, is operating in the power generation sector. Gazprom and Wintershall have been cooperating for so far over 13 years through their subsidiaries WINGAS (35 and 65 percent, respectively) and WIEH (50 and 50 percent, respectively).
In July 2003, Gazprom and Wintershall founded the 50/50 Achimgaz joint venture with the view of developing on a contract basis the 1st pilot play of the Achimov deposits of the Urengoy oil & gas condensate field. Over the entire development period (43 years), the companies plan to extract some 200 bcm of gas and 40 mln t of gas condensate, with 8.3 bcm of gas and 2.4 mln t of gas condensate to be produced on an annual basis during continuous production.
On 11 April 2005, Gazprom and BASF sealed a Memorandum of Understanding stipulating deeper cooperation in gas geological exploration and production in Russia and other countries, the Yuzhno-Russkoye field development, in particular. The Memorandum also fixes an agreement prescribing WINGAS’ participation in the North-European gas pipeline (NEGP) construction. WINGAS is projected to link NEGP with the German network of gas mains. At the same time, the parties agreed to jointly implement international energy projects.
The proved reserves of the Yuzhno-Russkoye field are valued at over 700 bcm. Gazprom has already started developing the field, launching seismic survey and drilling operations.
Information Directorate, OAO Gazprom