On December 11-12 Kronberg (Germany) saw a Coordination Committee Meeting for strategic cooperation between Gazprom and BASF AG headed by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and John Feldmann, Member of the BASF Board of Executive Directors.

The members of the Coordination Committee and heads of the working groups delivered reports on current status of the projects and measures being implemented by Gazprom and BASF/Wintershall.

In particular, the parties were satisfied with the observation of the bargain conditions providing for the exchange of BASF assets for the Gazprom share in Severneftegazprom authorized capital as well as the progress with the project development of Section 1A of the Achimov deposits of the Urengoy gas field by Achimgaz.

In the course of the meeting it was noted that Achimgaz was accomplishing the development of the first pilot area and going to commence the commercial operation of the field in 2008.

The parties also noted the successful development of the R&D cooperation between the companies during 15 years in 9 fields and 32 highly-specialized directions – from the automation of production processes to the environmental protection and safety.

Additionally, in the frames of the Coordination Committee Meeting the participants heard the reports on cooperation between Gazprom and Wintershall in gas business, in the sector of gas chemistry, experience communication and personnel training.

Reference:

BASF AG is a leading gas and oil chemical corporation in the world, running business in the chemicals, synthetic materials, plant protection goods as well as hydrocarbon production and transportation.

Wintershall AG, a Wintershall Holding AG 100 per cent subsidiary, which operates in the energy sector. Gazprom and Wintershall AG have been cooperating more than 13 years. The companies set up joint ventures including WINGAS and WIEH.

Achimgaz was set up on a parity basis of Gazprom and Wintershall AG in July 2003. The joint venture was set up in the aim of developing first pilot area of the Achimov deposits of the Urengoy oil and gas field. During the development period of said area (43 years) the parties plan to produce nearly 200 bcm of gas and 40 mln tons of condensate. During the period of constant production nearly 8.3 bcm of gas and 2.4 mln tons of gas condensate is planned to be produced per annum.

BASF AG is a Gazprom partner in developing the Yuzhno-Russkoye field and constructing the Nord Stream gas pipeline.