Today, as part of the Eastern Economic Forum in Vladivostok, Chairman of the Gazprom Management Committee Alexey Miller and BASF SE Chairman of the Board of Executive Directors Kurt Bock signed an agreement to close the asset swap deal between PJSC Gazprom and Wintershall Holding GmbH.
Under the transaction, Gazprom will take full control of the jointly operated companies involved in the trading and storage of gas in Europe – WINGAS, WIEH and WIEE – and will receive a 50% share in WINZ, an industry leader in the exploration and production of hydrocarbons in the North Sea.
In return, Wintershall will receive a 25.01% stake in the project of exploration and production at blocks 4A and 5A of the Achimov formation of the Urengoy gas and condensate field.
"This year we'll mark the 25th anniversary of our successful cooperation with Wintershall. Today's signing represents yet another shining example of its development, and will open new horizons for large-scale projects for our companies," said Alexey Miller.
"We shall continue to implement our strategy in the oil and gas industry, concentrating on profitable growth in our core regions, which are rich in oil and gas. And we are pleased at the further expansion of the joint production of natural gas and condensate in Western Siberia with our partner, Gazprom," said Kurt Bock.
In December 2013, Gazprom and Wintershall Holding GmbH signed a Master Agreement on the asset swap.
Wintershall Holding GmbH is a wholly owned subsidiary of the BASF SE concern, with over 80 years of experience in the exploration and production of oil and gas. WINGAS, WIEH and WIEE are joint ventures of Gazprom and Wintershall.
WINGAS GmbH (WINGAS) is a joint venture of Wintershall (50.02%) and Gazprom (49.98%). The primary area of activity of WINGAS is the wholesale trade and storage of natural gas. The company supplies hydrocarbons to its clients in Germany, where the company enjoys a market share of over 20%, and also in Belgium, the Netherlands, Great Britain, Austria, the Czech Republic and elsewhere. WINGAS includes urban and regional gas suppliers, industrial enterprises and power plants among its clients.
Wintershall Erdgas Handelshaus GmbH & Co. KG (WIEH) is a joint venture between Wintershall (50%) and Gazprom (50%). The company is responsible for the purchase and sale of natural gas in Germany.
Wintershall Erdgas Handelshaus Zug AG (WIEE) is a joint venture between Wintershall (50%) and Gazprom (50%). The company`s principal activity is the sale of natural gas in South-Eastern Europe.
Wintershall Noordzee B.V. (WINZ) is a company within the Wintershall Holding GmbH Group, and its activities include the exploration and production of hydrocarbons in the North Sea.
The Achimov deposits lie at great depths, (about 4,000 m) with abnormally high formation pressure (over 600 Ata), and are loaded with heavy paraffins, which significantly complicates their development and exploitation. Geological exploration has demonstrated the productivity of the Achimov deposits over a vast area of the Nadym-Pur-Taz region. Basic recoverable hydrocarbon reserves of the Achimov deposits are concentrated in the Urengoy oil, gas and condensate field, for which Gazprom Dobycha Urengoy, a wholly owned Gazprom subsidiary, is the license holder. The accumulated volume of production in blocks 4A and 5A of the Achimov deposits is estimated at about 274 billion cubic meters of natural gas and 74 million tons of condensate.
In July 2003, Gazprom and Wintershall Holding GmbH established a joint venture on a parity basis – Achimgaz – to develop the first test block of the Achimov deposits in the Urengoy field. In 2008, Achimgaz started up initial commercial production at the block.
Wintershall Holding GmbH and Gazprom are also partners in the development of the Yuzhno-Russkoye field and in the implementation of the Nord Stream project.