9/4/2015, 11:26 AM (Source: TeleTrader)
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Abandoned asset swap deal between BASF and Gazprom to be completed by the end of 2015

German BASF, the biggest chemical company in the world by revenue, and Russian Gazprom, the biggest extractor of natural gas in the world, decided to continue with their asset swap deal, which had been agreed in December 2013 and approved by the European Commission at the same time, but was disrupted by sanctions against Russia last year due to the Ukrainian crisis. Under the deal, BASF will get to further expand its oil and gas production by having its 100% subsidiary Wintershall develop two blocks of a natural gas field in western Siberia together with Gazprom. In return, Wintershall will have to give up its share in the jointly operated natural gas trading and storage business and transfer it to its 25-year partner Gazprom. The deal is expected to be completed by the end of 2015 and production is scheduled for 2018. The blocks are estimated to produce a total of 2.4bn barrels of oil equivalent.

Breaking the News / AM