Gazprom and BASF AG Sign Agreement on Assets Exchange

During Russian-German consultations in Tomsk, in the presence of Vladimir Putin, RF President, and Angela Merkel, FRG Federal Chancellor, Alexey Miller, Chairman of Gazprom's Management Committee and Jurgen Hambrecht, Chairman of the Board of Executive Directors, BASF AG, have signed an Agreement on assets exchange in gas production and natural gas trade.

According to the Agreement, Gazprom will increase its part in the Russian-German joint venture Wingas GmbH up to 50% minus one share. Besides, Gazprom will get its share in the capital of one of Wintershall AG group companies owing shares in geological and production assets in Lybia.

In its turn, BASF/Wintershall will acquire 25% minus one share and 10% non-voting shares in the company Severneftegazprom.

Besides, Gazprom and BASF AG will establish the joint venture Wingas Europa on a par to sell natural gas in European countries.

"The concluded agreement testifies that Russia and Germany trust each other. This promotes further development of stable and reliable partnership between Gazprom and BASF", declared Jurgen Hambrecht.

"The reached agreements determine equal and corresponding to both companies strategic interests exchange by gas production and sale assets. All the treaties needed to put the legal dot in this Agreement have been already worked out and to be signed this year.

Our cooperation with the concern BASF is unique and include the whole cost chain from geological exploration and natural gas production in West Siberia and its transmission through the North-European gas pipeline up to distribution in joint pipeline grid in Germany and other European countries. This opens additional possibilities for the Russian gas long-term and reliable supply to Europe on competitive basis", underlined Alexey Miller.

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Posted 03/05/06

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