Russian oil giant Gazprom has finalised a deal which gives the company its first presence in the UK North Sea.
The world’s largest gas producer has taken 50% stakes in UK and Dutch gas fields operated by Wintershall, the oil and gas unit of BASF, under an asset swap deal which has now been ratified.
In return, Wintershall will increase its interest in two exploration blocks in Siberia, where the two companies are already working together.
The agreement, signed initially by the two companies in November 2012 , has now been approved by the European Commission.
In the same deal Gaz-prom gained full ownership of three oil and gas trading and storage companies supplying the majority of Europe – WINGAS, WIEH and WIEE.
“An increase of Gaz-prom’s presence in the wholesale market as well as a potential outreach to retail consumers considerably strengthen our positions not only in Germany but in other European countries, too,” said Alexey Miller, chairman of Gazprom.
“The deal with our German partners also gives us access to promising offshore projects in the North Sea. It is an excellent opportunity for the company’s growth.”
Gazprom, which is 50% state-owned, holds 18% of the world’s gas reserves and is responsible for 15% of global natural gas production.
Wintershall already operates in the North Sea, having acquired exploration rights for more than 30 blocks and part blocks in the UK, Germany, Norway, Denmark and the Netherlands since 2006. It has more than 80 overall in the North Sea, with more than 30 exploration blocks in the British sector after becoming a UK operator for the first time in 2005.
Wintershall has taken a 25% interest in Gazprom’s Achimov project for development of blocks 4A and 5A in the Urengoyskoye field. The Western Siberia prospect is estimated to hold 274billion cubic meters of natural gas and 74million tons of gas condensate.
“The asset swap will allow us to focus on profitable growth at the source in our targeted oil and gas-rich regions,” said BASF chief executive, Kurt Bock.
“Through the joint development of additional blocks, we will further expand our production of natural gas and condensate.”