Wintershall focuses on E&P as it completes Gazprom asset swap

LUDWIGSHAFEN, Germany -- BASF and Gazprom have completed an asset swap, which will allow Wintershall, a wholly owned BASF subsidiary, to focus on exploration and production while it exits the gas trading and storage business. 

Through the transaction, Wintershall receives the economic equivalent of 25.01% of Blocks IV and V in the Achimov formation of the Urengoy natural gas and condensate field in Western Siberia. The two blocks will be jointly developed by Gazprom and Wintershall.

According to the development plan confirmed by the Russian mining authority, Blocks IV and V have total hydrocarbon resources of 274 Bcm of natural gas and 74 million metric tons of condensate. This is equivalent to a total of 2.4 Bboe. An annual plateau production of at least 8 Bcm of natural gas is expected from the two blocks. Production is planned to start in 2018.

In return, Wintershall has transferred its share in the previously jointly operated natural gas trading and storage business to its long-term partner Gazprom. This includes the 50% participation in the gas trading companies WINGAS, WIEH (Wintershall Erdgas Handelshaus Berlin) and WIEE (Wintershall Erdgas Handelshaus Zug) including shares in astora, which operates the natural gas storage facilities in Rehden and Jemgum, Germany, as well as a share in the natural gas storage in Haidach, Austria.

Gazprom also received a 50% share in the activities of Wintershall Noordzee B.V., which is active in the exploration and production of oil and gas in the southern North Sea (the Netherlands, the UK and Denmark). The successful partnership with Gazprom in the area of gas transportation activities will continue.