Gazprom and Wintershall complete asset swap
Gazprom and Wintershall Holding completed the asset swap.
As a result of the deal, Gazprom increased its share in European gas trading and storage companies WINGAS, WIEH and WIEE to 100 per cent as well as received a 50 per cent stake in WINZ involved in hydrocarbon exploration and production in the North Sea.
In its turn, Wintershall obtained 25.01 per cent in the project for developing Blocks 4A and 5A in the Achimov deposits of the Urengoy oil, gas and condensate field.
“For over 40 years Gazprom has been a reliable supplier to Europe. Strengthening the Company’s positions in the European gas storage and sales segment guarantees uninterrupted gas supplies to consumers,” pointed out Alexey Miller, Chairman of the Gazprom Management Committee.
“Following our long-term partnership in the gas trading and storage business, we have transferred it to our partner and are convinced that Gazprom will continue to successfully develop the business.
We look forward to further expanding the joint production of natural gas and condensate with Gazprom in Western Siberia,” said Kurt Bock, Chairman of the BASF Board of Executive Directors.
Wintershall Holding GmbH is a wholly-owned subsidiary of BASF. The company has been focused on oil and gas exploration and production for over 80 years.
WINGAS is mainly engaged in natural gas wholesale trade and storage. The company supplies hydrocarbons to customers in Germany, where it occupies over 20 per cent of the market, as well as to Austria, Belgium, the Czech Republic, the Netherlands, the UK and other countries. WINGAS customers are urban and regional gas utilities, industrial companies and power plants.
WIEH (Wintershall Erdgas Handelshaus GmbH & Co. KG) purchases and sells natural gas in Germany.
WIEE (Wintershall Erdgas Handelshaus Zug AG) is mainly focused on natural gas sales in Southeastern Europe.
The activities of WINZ (Wintershall Noordzee B.V.) include geological exploration and hydrocarbon production offshore the North Sea.
The Achimov deposits lie at big depths (nearly 4,000 meters) and feature abnormally high formation pressures (over 600 Ata) and heavy paraffins presence, which considerably complicates their development and exploitation. Geological exploration has proven the Achimov deposits productivity across a vast area of the Nadym-Pur-Taz region. The bulk of recoverable hydrocarbon reserves of the Achimov deposits are accumulated in the Urengoy oil, gas and condensate field. The aggregate production volume in blocks 4A and 5A of the Achimov deposits is estimated at some 274 billion cubic meters of natural gas and 74 million tons of gas condensate.
In 2008 Achimgaz (joint venture of Gazprom and Wintershall established on a par) brought into test operation the first pilot block of the Achimov deposits at the Urengoy field.