Gazprom and BASF to sign final asset swap agreement before year-end

RELEASE

Led by Alexey Miller, Chairman of the Gazprom Management Committee the Company's delegation paid today a visit to Germany.

Gazprom and BASF to sign final asset swap agreement before year-end
Gazprom and BASF to sign final asset swap agreement before year-end

Gazprom and Wintershall to sign final asset swap agreement this year

As part of the visit, Alexey Miller met with Kurt Bock, Chairman of the Board of Executive Directors of BASF.

The parties addressed the bilateral cooperation in the energy sector, particularly, as part of the Nord Stream project and the South Stream offshore section construction.

The meeting participants also highlighted the doubling of Russian gas supply via the Nord Stream gas pipeline in the first half of the current year as compared to the corresponding period of 2012.

In addition, Alexey Miller and Kurt Bock paid attention to the cooperation deepening between Gazprom and Wintershall and looked at the current asset swap deal between the companies. It was noted that the final swap agreement would be signed in 2013 and the deal would be closed in 2014.

Background

BASF is the world's leading chemical company. Its major business lines are production of chemicals, synthetic materials and plant protection products as well as extraction and transportation of hydrocarbons.

BASF and Wintershall Holding (a wholly-owned subsidiary of BASF, operating in the energy sector) are Gazprom's partners in developing the first pilot block of the Achimov deposits of the Urengoyskoye oil, gas and condensate field and the Yuzhno-Russkoye oil and gas field in Russia. The companies also set up gas trading and storage joint ventures in Europe, namely, WINGAS, WIEH and WIEE.

In November 2012 Gazprom and Wintershall signed a legally binding Basic Agreement on Asset Swap stipulating the major commercial terms and conditions for the future swap deal. As part of the deal, Wintershall will acquire 25 per cent plus one share in developing blocks 4A and 5A in the Achimov deposits of the Urengoyskoye oil, gas and condensate field. In the meantime, Gazprom will increase its stakes from 50 to 100 per cent in the assets of European gas trading and storage companies WINGAS, WIEH and WIEE, as well as receive a 50 per cent stake in WINZ, which runs oil and gas exploration and production projects in the North Sea.

 

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