BASF and Gazprom have completed the swap of assets with equivalent value effective at the end of September 30, 2015, financially retroactive to April 1, 2013.
With the swap, BASF is further expanding its production of oil and gas and has exited the gas trading and storage business.
Through the transaction, Wintershall, a 100% subsidiary of BASF, receives the economic equivalent of 25.01% 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.
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 October 1, 2015.