German BASF and Russian Gazprom have signed the final agreement to swap assets of equivalent value.

The transaction is to be completed in mid-2014 and is to become economically effective retroactively to April 1, 2013, according to a media statement of BASF.

The deal was approved by the European Commission at the beginning of December 2013.

Through the agreement, two additional blocks of the Achimov formation of the Urengoi natural gas and condensate field in western Siberia will be jointly developed.

Wintershall, a 100% subsidiary of BASF, receives 25% plus one share of the blocks IV and V in the Achimov formation.

In return, Wintershall will completely transfer the currently jointly operated natural gas trading and storage business to its long-term partner Gazprom.

This includes the 50% shares in the gas trading companies WINGAS, WIEH (Wintershall Erdgashandelshaus Berlin) and WIEE (Wintershall Erdgashandelshaus Zug) including shares in the natural gas storage facilities in Rehden and Jemgum, Germany, as well as Haidach, Austria, and the gas storage operator astora.

Gazprom will also receive 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).

Together these activities contributed about EUR 10 B to sales and roughly EUR 500 M to EBITDA of BASF Group in 2012. The partnership in the area of gas transportation activities will continue unchanged.

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