OAO Gazprom, and of BASF SE have signed a framework agreement which sets out the terms for the planned asset swap to further expand the successful cooperation.
Two further blocks of the Achimov formation of the Urengoy field in western Siberia will be developed by the two companies. Wintershall, a wholly owned subsidiary of BASF SE, will initially hold a working interest of 25% plus one share in the development of blocks IV and V. Wintershall retains the option of increasing this shareholding to 50%. The framework agreement stipulates that Gazprom will receive interests of equal value in selected exploration and production projects by Wintershall in the North Sea (Netherlands, UK). Gazprom will ultimately receive half of Wintershall’s shares in these concessions.
“The constructive partnership between Gazprom and BASF/Wintershall enables us to tackle technically complex and ambitious projects. Together with Wintershall, we want to expand gas production from the Achimov layers of the Urengoy deposit and cooperate in E&P projects in the southern North Sea, where Wintershall has been operating successfully for decades, for our mutual benefit,” said Alexey Miller, Chairman of the Management Committee of OAO Gazprom.
The cooperation between Wintershall and Gazprom extends from the exploration and production of natural gas in West Siberia to transportation through the Nord Stream pipeline and the sale of the natural gas in Germany and Europe by the jointly owned natural gas trading company WINGAS. With the existing Siberian production operations in Novy Urengoy and Yuzhno Russkoye, BASF and Gazprom already help to secure Europe’s energy supply together.