Russ Oil-Gas

Dec. 19, 2007 - Kommersant - Russia’s Gazprom and German BASF have completed the deal on the asset swap under the Yuzhno-Russkoe project without waiting for E.On to join the undertaking. As a result, Gazprom got 50 percent in German Wingas gas trader and 49 percent in Wintershall that produces hydrocarbon in Libya. BASF is forecasted to annually generate $2 billion from its share in Yuzhno-Russkoe starting from 2009. From the Moscow headquarters of Gazprom, Russia’s First Deputy Prime Minister and Gazprom BOD Chairman Dmitry Medvedev and German Vice Chancellor, Foreign Minister Frank-Walter Steinmeier inaugurated December 18, 2007 Yuzhno-Russkoe field of gas condensate in Yamal-Nenets Autonomous District of Russia. Yuzhno-Russkoe reserves are estimated at 1 trillion cu meters of gas. In the next effort, Gazprom CEO Alexei Miller and BASF CEO Juergen Hambrecht inked the certificate on the asset swap in the Yuzhno-Russkoe project. Far back in the spring of 2006, the parties entered into the agreement, which provided for Gazprom’s extension in Wingas GmbH to 50 percent less a stock. In the end, the monopoly also got 49 percent in Wintershall AG. BASF received 25 percent less a common stock in Severneftegazprom (license holder for Yuzhno-Russkoe development) and a preferred stock, which has no voting right but equals to 10 percent in the project. Therefore, BASF may add roughly 35 percent of Yuzhno-Russkoe reserves to the balance. German E.On was expected to emerge as the third partner, but the parties failed to agree on the deal.