BASF, Gazprom swap Urengoi, gas assets

BASF AG and Gazprom have agreed to an asset swap covering two blocks in Urengoi gas and condensate field in Russia and gas trading and storage businesses in Europe.

BASF subsidiary Wintershall will receive 25% plus one share of Blocks 4 and 5 covering the Jurassic Achimov formation of Urengoi field in West Siberia, plus the option to increase the interests to 50% (OGJ Online, Mar. 10, 2011).

The start of production from the blocks, with total resources estimated at 274 billion cu m of natural gas and 74 million tonnes of condensate, is planned for 2016. Plateau production of at least 8 billion cu m/year is expected.

Wintershall will transfer 50% shares in the European gas trading and storage businesses it operates jointly with Gazprom to the Russian partner.

Gazprom thus will receive Wintershall’s shares of the gas-trading companies WINGAS, WIEH, and WIEE, including shares in gas storage facilities in Rehden and Jemgum, Germany, and Haidach, Austria, and the gas storage operator astora. Gazprom also will receive a 50% share in activities of Wintershall Norzee BV, which has exploration and production interests in the Dutch, UK, and Danish sectors of the North Sea.

With the swap, BASF exits the gas trading and storage business.

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