Russ Oil-Gas

Nov. 13, 2008 - Kommersant - Wintershall, the hydrocarbons division of BASF, is discussing joint development projects in Eastern Siberia and the Russian Far East with Gazprom. The Russian monopoly is most interested in technical and financial support from its German partner in order to create a gas and chemical complex that will include the Kovykta gas condensate field. Gazprom chief Alexey Miller called talks with Wintershall “serious,” Interfax reports. He said that Gazprom has presented a “program to create a unified production system in Eastern Siberia and the Russian Far East” and the Germans were interested. Neither Gazprom nor BASF is commenting on the nature of their potential partnership. “We are looking for an opportunity for synergy,” Gazprom spokesman Sergey Kupriyanov commented. Gazprom and Wintershall own equal shares in Achimgaz, which is worth a total of €700 million. The Eastern Siberia gas program, which was approved by the government in September 2007, foresees the formation of new natural gas production centers in Sakhalin, Yakutsk, Irkutsk (the Kovykta field) and Krasnoyarsk. Gazprom was appointed coordinator of that project. There are a number of chemicals found in the gas filed along with the natural gas and development requires a complex approach. That requires considerable capital investment and the most modern technology. Fourteen percent is the level of foreign participation planned in the future development of the Russian gas industry, but it would be expedient and efficient to make exceptions fro individual projects.