BASF announced Thursday that its Wintershall subsidiary has completed an asset swap with Russia's Gazprom that will enable the German firm to focus solely on oil and gas exploration and production.
The deal will see BASF exit the gas trading and storage business. Meanwhile, it will gain the economic equivalent of 25 percent of Blocks IV and V in the Achimov formation of the Urengoy natural gas and condensate field in Western Siberia. The blocks will be jointly developed by Gazprom and Wintershall.
BASF said that 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, which is equivalent to a total of 2.4 billion barrels of oil equivalent.
BASF expects production to hit 8 billion cubic meters (283 billion cubic feet) of natural gas annually. Production is scheduled to start in 2018.
In return, Gazprom will receive Wintershall's share in the previously jointly-operated natural gas trading and storage business. This includes the 50-percent participation in the gas trading companies WINGAS, WIEH and WIEE.
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