Big Asset Swap in Oil & Gas BASF Subsidiary Wintershall to Exit Gas Trading Business
BASF subsidiary Wintershall wants to focus on oil and gas exploration and production and exit gas trading business. Now the company complete together with Gazprom the swap of assets.
Ludwigshafen/Germany – In the process of the swap of assets with equivalent value signed in December 2013 receives Wintershall the economic equivalent of 25% plus one share of the 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 billion cubic meters of natural gas and 74 million metric tons of condensate. This is equivalent to a total of 2.4 billion barrels of oil equivalent (boe). An annual plateau production of at least 8 billion cubic meters of natural gas is expected from the two blocks. Production is planned to start in 2018.
Gazprom Takes Over BASF's Gas Trading Business
In return, Wintershall will transfer its share in the currently 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 will also receive a 50% share in the activities of Wintershall Noordzee, which is active in the exploration and production of oil and gas in the southern North Sea (Netherlands, UK and Denmark). Together these activities contributed about €12.2 billion to sales and around €260 million to EBITDA of BASF Group in 2014 and about €7.2 billion to sales and around €240 million to EBITDA of BASF Group in the first half of 2015. The partnership in the area of gas transportation activities will continue.