On working meeting between Alexander Ananenkov and Reiner Zwintserloot
Gazprom’s Headquarters has hosted a meeting between Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee & Deputy Chairman of the Supervisory Board of Wintershall AG and Reinier Zwitserloot, Chairman of Wintershall AG’s Board of Executive Directors.
The meeting dealt with Wintershall AG’s operating results for 2004 and the 1st quarter of 2005. Among other things, Mr. Zwitserloot touched upon Wintershall’s worldwide hydrocarbon exploration and production activities.
Simultaneously, the parties addressed matters in connection with gas trading in Europe, pointing to the increase in Russian natural gas sales effected over 2004 by the Wingas and WIEH joint ventures. The companies keep improving joint production capacities, including through the construction of new underground gas storage facilities in Austria and the Great Britain.
A. Ananenkov and R. Zwitserloot exchanged opinions on the Achimgaz company founded to develop the Achimov deposits of the Urengoy field. The parties expressed mutual satisfaction with the progress in the construction works to be immediately followed by first drilling operations.
In the parties’ opinion, Gazprom and Wintershall’s interaction over 2004 to 2005 lays strong foundations for further cooperation deepening within the Hannover Memorandum of understanding signed by the companies in April 2005.
Wintershall AG, a BASF AG 100% 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%, respectively) and WIEH (50% and 50%, respectively).
On 11 April 2005, Gazprom and BASF sealed a Memorandum of understanding emphasizing, in particular, joint development of the Yuzhno-Russkoye field. To implement said project, the parties will set up a joint venture on the platform of Severneftegazprom being the Yuzhno-Russkoye field development licensee. BASF will obtain a 50% stake excluding 1 share in the new joint venture and Gazprom will increase its Wingas’ stake from 35% to 50% excluding 1 share. The Memorandum also stipulates potential involvement of other West European companies capable to make a substantial contribution into the project implementation. At the same time, the Memorandum fixes a mutual agreement prescribing Wingas’ participation in the North-European gas pipeline (NEGP) construction. Wingas is projected to link NEGP with the German gas pipeline network. Additionally, the parties agreed to jointly implement international energy projects.
Wingas constructed the Germany-based 323-km-long 8 bcm/y STEGAL and 642-km-long 13 bcm/y MIDAL gas trunk lines providing direct access to the German gas market. In 1998, Wingas brought on stream the 294-km-long VEDAL gas pipeline linking the Wingas-controlled gas transmission network with the Belgian gas system stretching to the Interconnector gas line. The 1999 commissioning of the 336-km-long YAGAL gas pipeline linked the Yamal-Europe line (in the vicinity of Frankfurt-on-Oder) with the STEGAL network (south of Leipzig). Wingas is operator of the largest German underground gas storage facility Rehden.
Founded in July 2003 as a 50/50 joint venture of Gazprom and Wintershall, Achimgaz is focused on developing the 1st pilot play of the Achimov deposits of the Urengoy oil and gas condensate field.
Over the entire development period (43 years), the companies plan to extract some 200 bcm of gas and 40 million tons of condensate, with 8.3 bcm of gas and 2.4 million tons of condensate to be yearly produced during continuous production.
Information Directorate, OAO Gazprom