Gazprom and Wintershall intend to expand gas production of Achimov deposits of the Urengoy field

Kassel, (PresseBox) - Today, Alexander Medvedev, Deputy Chairman of the Management Committee of OAO Gazprom, and Dr. Hans-Ulrich Engel, Board member of BASF, responsible for the Oil & Gas Division, signed in St. Petersburg a Memorandum which foresees possible development on a parity basis of two additional sites of the Achimov deposits of the Urengoy field. The document stipulates Gazprom will receive equivalent stakes in Wintershall's exploration and production projects in the North Sea.

"Constructive partnership between Gazprom and Wintershall allows us to embark on projects most ambitious from the technological point of view. Together with our German colleagues, we are ready to expand gas production at Achimov deposits of the Urengoy field, and also cooperate in Wintershall's production projects for a common benefit", Alexander Medvedev said. "The joint production by Wintershall and Gazprom from the Achimov deposit is an impressive example of our long-standing and successful cooperation model of working together in partnership and complementing each other's strengths along the entire value-added chain", Dr. Hans-Ulrich Engel explained.

Background Information

The cooperation between BASF/Wintershall, Germany's largest producer of crude oil and natural gas, and Gazprom, the world's largest producer of natural gas, today extends from the exploration and production of natural gas in West Siberia to construction of the Nord Stream pipeline to the sale of natural gas in Germany and Europe via the joint natural gas trading company WINGAS.

With the existing production in Siberia in Novy Urengoy and Yuzhno Russkoye, BASF and Gazprom are already helping to secure Europe's natural gas supply

ZAO Achimgaz, a joint venture of OAO Gazprom (50 %) and the wholly owned BASF subsidiary Wintershall (50 %), produces natural gas and condensate in Novy Urengoy, which lies about 3,500 kilometers north-east of Moscow, from Block 1A of the Achimov horizon.

Achimgaz plans to produce up to 200 billion cubic meters of natural gas and 40 million tons of condensate from the deposit over a period of more than 40 years. The joint venture aims to produce up to 8 billion cubic meters of natural gas per year during the plateau phase. Achimgaz is currently producing around 3.5 million cubic meters of gas and 1,600 tons of condensate daily from six pilot wells in a subsection of the Achimov horizon in the Urengoy field. The partners are currently putting together the concept for the field's further development.

The natural gas field Yuzhno Russkoye is the second major natural gas production project between Gazprom and the BASF subsidiary in Siberia. This natural gas deposit was already commissioned in 2007. Wintershall has a 35 percent share in the commercial success of the field via OAO Severneftegazprom. The field already reached plateau production of 25 billion cubic meters of natural gas per year in the middle of 2009. All 142 production wells are in operation. Around 75 million cubic meters of natural gas are produced there every day. The Yuzhno Russkoye field in West Siberia, which was discovered in 1969, has recoverable reserves of more than 600 billion cubic meters of natural gas.

One of the routes the Russian gas will take will be through the Nord Stream pipeline in the Baltic Sea, which has been under construction since April 2010. This pipeline connects the Siberian gas reserves at a length of 1,220 km with two parallel legs directly with Germany. Over 1,000 kilometers of the first pipeline leg have already been laid. The first leg of the pipeline is scheduled to come on stream in October 2011. Gazprom and the wholly owned BASF subsidiary Wintershall have already been active in natural gas trading in Germany and other European countries since 1990 via the German-Russian joint ventures WIEH, WIEE and WINGAS. This makes Wintershall and WINGAS two of the largest German importers of Russian natural gas. The joint natural gas trading company WINGAS alone has sold more than 250 billion cubic meters of natural gas since it was founded.

About BASF

BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and agricultural products to oil and gas. As a reliable partner BASF creates chemistry to help its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of about €63.9 billion in 2010 and had approximately 109,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com or in its Social Media Newsroom at newsroom.basf.com.

About OAO Gazprom

OAO Gazprom is the world's leading natural gas company specializing in the exploration, production, transport, storage, processing and marketing of natural gas and other hydrocarbons as well as energy generation. Gazprom's gas reserves are estimated at 29 TCM, i.e. around 70% of Russia's and 18% of the world's gas reserves. Gazprom is responsible for around 80% of Russian and 15% of global natural gas production. Gazprom has a 26% share of gas supplies on the European market and exports to 31 countries. Further information is available on the Internet www,gazprom.com

Wintershall Holding GmbH

Wintershall, based in Kassel, Germany, is a wholly-owned subsidiary of BASF in Ludwigshafen. The company has been active in the exploration and production of crude oil and natural gas for over 75 years.

Wintershall deliberately focuses on selected core regions, where the company has built up a high level of regional and technological expertise. These are Europe, North Africa, South America, as well as Russia and the Caspian Sea region. In addition, these operations are complemented by the company's growing exploration activities in the Arabian Gulf. The company employs more than 2,000 staff from 35 nations and is now Germany's largest crude oil and natural gas producer. With its jointly owned subsidiaries with Russia's Gazprom, WINGAS and WINGAS TRANSPORT, the BASF subsidiary is also an important gas supplier on the German and European market. Further information on Wintershall is available on the Internet at www.wintershall.com.

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