Gazprom, BASF not to conclude asset swap
MOSCOW. Dec 19 (Interfax) - BASF and Gazprom have agreed that they will not complete the asset swap, which was planned for the end of the year, BASF said in a press release.
"We regret that the asset swap will not be concluded. We will continue our cooperation of over 20 years with Gazprom in our existing joint ventures," said Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.
"Our strategy in the oil and gas business remains unchanged: We will continue focusing on profitable growth at the source in our targeted oil and gas-rich regions in Europe, North Africa, Russia, South America, and the Middle East," Bock said
The natural gas trading business will continue to operate as a 50-50 joint venture between Gazprom and BASF Group company Wintershall. Wintershall Noordzee B.V. will remain a 100% BASF Group company. At the end of 2012, the assets and liabilities of the natural gas trading business were classified as a disposal group in the financial statements.
In the asset swap, it was originally planned that two additional blocks of the Achimov formation of the Urengoi natural gas and condensate field in western Siberia would be jointly developed by Gazprom and Wintershall, a 100% subsidiary of BASF. In return, Wintershall would have transferred the jointly operated natural gas trading and storage business to Gazprom. Gazprom would have also received 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).
The deal had to be completed by the end of this year, otherwise it would be canceled, reports have said.
Gazprom CEO Alexei Miller said a month ago that the deal with BASF was still on the agenda.
