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13 January 2014

Alexander Medvedev addressed the meeting of German WINGAS company employees

Today, in Kassel (Germany), Deputy Chairman of the Gazprom Management Committee, Director General of Gazprom Export Alexander Medvedev addressed the annual meeting of the employees of the German company WINGAS, with 50% of its shares being owned by Gazprom Group.

The speech delivered by Mr. Medvedev was focused on the future incorporation of WINGAS, which specializes in trade and storage of natural gas in Europe, into Gazprom Group.

On 23 December, a master agreement to swap assets between Gazprom and Wintershall Holding GmbH (Wintershall) was signed in Moscow. As a result of the deal, Gazprom will increase its stakes in European gas trading and storage companies WINGAS, WIEH and WIEE to 100 per cent as well as receive a 50 per cent stake in WINZ involved in hydrocarbon exploration and production in the North Sea. In its turn, Wintershall will obtain a 25.01 per cent share in the project for developing blocks 4A and 5A in the Achimov deposits of the Urengoyskoye oil, gas and condensate field.

On December 4, 2013 the asset swap deal was approved by the European Commission.

“In the near future WINGAS will become part of the Gazprom family, and we shall be able to capitalize on our mutual enormous potential. We shall accelerate our growth in many areas, notably in ‘blue fuel’ extraction, transportation, storage and trade. The assets swap opens new vistas for all of us,” Mr. Medvedev said in his speech to the employees and top management of the German company.

 

Background

In November 2012 Gazprom and Wintershall Holding signed a binding Heads of Agreement to swap assets.

Wintershall Holding GmbH, headquartered in Kassel, Germany, is a wholly-owned subsidiary of BASF. The company has been focused on oil and gas exploration and production for over 80 years. WINGAS, WIEH and WIEE are joint ventures of Gazprom and Wintershall Holding.

WINGAS is a joint venture of Wintershall (50.02 per cent) and Gazprom (49.98 per cent). WINGAS is mainly focused on natural gas wholesale trade and storage. The company supplies hydrocarbons to customers in Germany, where it occupies over 20 per cent of the market, as well as to Belgium, the Netherlands, the UK, Austria, the Czech Republic and other countries. WINGAS customers include urban and regional gas utilities, industrial companies and power plants. In 2012 WINGAS sold some 40 billion cubic meters of natural gas.

Wintershall Erdgas Handelshaus (WIEH) is a joint venture of Wintershall (50 per cent) and Gazprom (50 per cent). The company purchases and sells natural gas in Germany.

Wintershall Erdgas Handelshaus Zug (WIEE) is a joint venture of Wintershall (50 per cent) and Gazprom (50 per cent). The company is mainly focused on natural gas sales in Southeastern Europe.

Engaged in geological exploration and hydrocarbon production offshore the North Sea, Wintershall Noordzee (WINZ) is part of Wintershall Holding Group.

The Achimov deposits lie at big depths (nearly 4,000 meters) and feature abnormally high formation pressures (over 600 Ata) and heavy paraffins presence, which considerably complicates their development and exploitation. Geological exploration has proven the Achimov deposits productivity across a vast area of the Nadym-Pur-Taz region. The bulk of recoverable hydrocarbon reserves of the Achimov deposits are accumulated in the Urengoyskoye oil, gas and condensate field, with Gazprom Dobycha Urengoy (Gazprom’s fully-owned subsidiary) being the subsurface user. The aggregate production volume in blocks 4A and 5A of the Achimov deposits is estimated at some 274 billion cubic meters of natural gas and 74 million tons of gas condensate through to 2039.

In July 2003 Gazprom and Wintershall Holding set up on a parity basis a joint venture — Achimgaz — for developing the first pilot block of the Achimov deposits in the Urengoyskoye field. In 2008 Achimgaz brought the block into pilot operation.

Wintershall Holding also partners up with Gazprom in developing the Yuzhno-Russkoye field development as well as in implementing the Nord Stream and South Stream projects.
 

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