Alexei Miller, Chairman of the Management Committee of OAO Gazprom, and Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, have signed a legally binding basic agreement detailing key terms and conditions on swapping assets within the framework of the joint project to develop the Achimov formation of the Urengoi oil and gas condensate field. The final agreement is expected to be signed in 2013.
The document stipulates that Wintershall share in the new development project on the blocks IVA und VA of the Achimov formation of the Urengoi field could amount to 25% plus one share.
The document also stipulates that Gazprom may receive 50% shares in the WINZ company involved in exploration and production of gas in the North Sea, and increase to 100% its share in WINGAS, WIEH (Wintershall Erdgashandelshaus Berlin) and WIEE (Wintershall Erdgashandelshaus Zug) involved in gas trade and storage.
"Through the agreement, Gazprom and BASF are confirming their strategic partnership on the international energy market. By increasing our share in the gas trading and storage business, we are continuing our successful activities to secure the supply of gas for Europe. The agreement on exploration and production extends the geographic dimension of our cooperation, which has already successfully started with production projects in Russia," said Alexei Miller.
"The asset swap is consistent with our strategy to expand the exploration and production of crude oil and natural gas – through organic growth and targeted acquisitions. With this step, we are further developing our more than 20 year partnership: Gazprom will become more active in the natural gas trading and storage business and we will jointly expand the production at the source," said Dr. Kurt Bock.