Gazprom acquires Argentinian gas fields in an asset-swap with BASF

Gazprom headquarters in Moscow
Source: DollarPhotoClub

Gazprom will take over Argentinian gas assets from Germany’s Wintershall during President Vladimir Putin’s visit to Buenos Aires on July 12-13, Russian press agency ITAR-TASS reported yesterday. In return, BASF, the owner of the German company, will become a shareholder in a gas field in western Siberia.

Wintershall has interests in fifteen oil and gas fields in Argentina, with a total annual production of 26 million barrels of oil equivalent. The company is also the operator of two license blocks in the province of Mendoza, where the presence of shale gas and oil has been confirmed.

Negotiations between Gazprom and Wintershall regarding South American assets have been continuing since 2013. The agreement is a part of an asset swap between Gazprom and BASF, which owns the Wintershall. In 2012, Gazprom and Wintershall signed a framework agreement regarding the exchange of assets held by both companies. According to the agreement, Wintershall will receive 25 percent of shares in the fourth and fifth block of the Urengoiskoye gas field in western Siberia, with the ability to increase the share to 50 percent at a later date. Gazprom, in turn, will increase its stake in joint trading, storing and extracting assets in the EU.

Image: Gazprom headquarters in Moscow.

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