Both the companies had signed the deal in December 2013 and originally intended to be completed by the end of 2014.
BASF’s wholly-owned subsidiary Wintershall has received 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. Gazprom and Wintershall are jointly developing the two blocks.
The Russian mining authority estimates the blocks IV and V have total hydrocarbon resources of 274 billion cubic meters of natural gas and 74 million metric tons of condensate, based on development plan.
Planned to commence production in 2018, the two blocks are expected to have an annual plateau production of at least 8 billion cubic meters of natural gas.
The deal is a part of BASF’s plan to expand its production of oil and gas.
With the completion of assets swap, BASF has exited the gas trading and storage business by transferring its share to Gazprom.
Wintershall’s gas trading and storage business includes the 50% stake in the gas trading companies WINGAS, Wintershall Erdgas Handelshaus Berlin (WIEH) and Wintershall Erdgas Handelshaus Zug and (WIEE).
The company also transferred its stake 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.
Additionally, Gazprom secured 50% stake in the activities of Wintershall Noordzee, which is active in the exploration and production of oil and gas in the southern North Sea.
BASF chairman of the board of executive directors Dr Kurt Bock recently said: "In Oil & Gas, we are continuing our strategy of focusing on profitable growth at the source in our targeted oil and gas-rich regions."
Image: BASF plan to focus on expanding its oil and gas production. Photo: courtesy of Wintershall Holding.
