BASF SE / Key word(s): Miscellaneous
14.11.2012 08:27
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
BASF and Gazprom agree on asset swap
- BASF to increase oil and gas production and exit gas trading and
storage business
- BASF Group company Wintershall to receive 25% plus one share in the
blocks IV und V in the Achimov formation of the Urengoi field in
western Siberia
- Gazprom to take over 100% of the currently jointly run natural gas
trading and storage business as well as 50% of Wintershall Noordzee
B.V.
Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, and
Alexej Miller, Chairman of the Management Committee of OAO Gazprom, today
(November 14, 2012) signed a legally binding basic agreement to swap assets
of equivalent value. Through the swap, BASF aims to further expand its
production of oil and gas and to exit the gas trading and storage business.
Subject to the approval by the relevant authorities, the transaction is to
be completed by the end of 2013 and financially retroactive to April 1,
2013.
Through the agreement, two additional blocks of the Achimov formation of
the Urengoi natural gas and condensate field in western Siberia will be
jointly developed. Wintershall, a 100% subsidiary of BASF, will receive 25%
plus one share of the blocks IV and V in the Achimov formation together
with the option to increase the share in the two gas and condensate
deposits to 50%. 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 barrel of oil
equivalent. A total annual plateau production of at least 8 billion cubic
meters of natural gas is expected from the two blocks. Start of production
is planned for 2016.
In return, Wintershall will completely transfer the currently jointly
operated natural gas trading and storage business to its long-term partner
Gazprom. This includes the 50% shares in the gas trading companies WINGAS,
WIEH (Wintershall Erdgashandelshaus Berlin) and WIEE (Wintershall
Erdgashandelshaus Zug) including shares in the natural gas storage
facilities in Rehden and Jemgum, Germany, as well as Haidach, Austria, and
the gas storage operator astora. Gazprom will also receive a 50% share in
the activities of Wintershall Noordzee B.V., which is active in the
exploration and production of oil and gas in the southern North Sea
(Netherlands, UK and Denmark). Together the activities to be divested
contributed EUR8.6 billion to sales and EUR350 million to income from
operations (EBIT) of the BASF Group in 2011. The partnership in the area of
the construction, operation and marketing of natural gas pipelines will
continue unchanged.
The asset swap is consistent with BASF's strategy to expand the exploration
and production of crude oil and natural gas - through organic growth and
targeted acquisitions. The traditional natural gas trading business,
however, offers Wintershall little possibility for differentiation.
Wintershall has been the preferred partner of Gazprom for many years in the
production of natural gas in Russia. With the projects Yuzhno Russkoye and
Achimgaz, Wintershall and Gazprom already jointly produce gas. Since 2000,
Wintershall's production of crude oil and natural gas has increased from 80
million barrels of oil equivalent (boe) to an expected around 140 million
boe in 2012. This is an average increase of 5% per year. By 2015, the
company plans to increase production to at least 160 million boe.
Especially the production of oil and gas in Russia and the northern North
Sea is to be expanded.
Jennifer Moore-Braun
Phone: +49 621 60-99123
Fax: +49 621 60-92693
jennifer.moore-braun@basf.com
Contact:
Jennifer Moore-Braun
Head of Corporate Media Relations BASF Group
Phone: +49 621 60-99123
Mobile: +49 173 3478718
Fax: +49 621 60-92693
E-Mail: jennifer.moore-braun@basf.com
Postal Address: BASF SE, ZOA/CM - C100, 67056 Ludwigshafen, Germany
14.11.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: BASF SE
Carl-Bosch-StraÃe 38
67056 Ludwigshafen
Germany
Phone: +49 (0)621 60-0
Fax: +49 (0)621 60-4 25 25
E-mail: info.service@basf.com
Internet: www.basf.com
ISIN: DE000BASF111, DE000A0JRFB0, Börse Dublin, Frankfurter
Wertpapierbörse, DE000A0JRFA2, Börse Dublin, Frankfurter
Wertpapierbörse, DE000A0JQF26, Börse Dublin, Frankfurter
Wertpapierbörse, DE000A0EUB86, Frankfurter Wertpapierbörse,
DE0008846718, Frankfurter Wertpapierbörse, DE000A0XFK16,
Börse Luxemburg, Frankfurter Wertpapierbörse, XS0420401779,
Börse Luxemburg, XS0412154378, Börse Luxemburg, Frankfurter
Börse, DE000A0T4DU7,Börse Luxemburg, Frankfurter Börse,
CH0039943292, Swiss Exchange (SWX), CH0039943383, Swiss
Exchange (SWX), DE000A0TKBM, Börse Luxemburg, Frankfurter
Börse, XS0414672070, Börse Luxemburg, ,
WKN: BASF11, WKN A0JRFB, Börse Dublin, Frankfurter Wertpapierbörse,
, WKN A0JRFA, Börse Dublin, Frankfurter Wertpapierbörse, , WKN A0JQF2, Börse
Dublin, Frankfurter Wertpapierbörse, , WKN A0EUB8, Frankfurter
Wertpapierbörse, , WKN 884671, Frankfurter Wertpapierbörse, , WKN A0XFK1,
Börse Luxemburg, Frankfurter Wertpapierbörse, , WKN A0XFHJ, Börse Luxemburg,
, WKN A0T6EG, Börse Luxemburg, Frankfurter Wertpapierbörse, , WKN A0T4DU,
Börse Luxemburg, Frankfurter Wertpapierbörse, , WKN 3994329, Swiss Exchange
(SWX), , WKN 3994338, Swiss Exchange (SWX), , WKN A0TKBM, Börse Luxemburg,
Frankfurter Wertpapierbörse, , WKN A0T65R, Börse Luxemburg,
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse
EUREX; London, SIX
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: BASF SE: BASF and Gazprom agree on asset swap
| Source: EQS Group AG