On Thursday, 5 October 2017, Vitaly Markelov and Alexander Medvedev, Deputy Chairmen of Gazprom's Management Committee, held a working meeting with Hans-Ulrich Engel and Mario Mehren, Senior Managers of German Concern BASF and Wintershall Holding GmbH, during the 7th St. Petersburg International Gas Forum. Gazprom International was represented by Andrey Fick, Managing Director and CEO.
The meeting participants highly appreciated the partnership for the hydrocarbon production in Russia and international cooperation of the companies. In particular, the parties discussed the status and outlook of cooperation between the companies on the joint projects in the British, Danish and Dutch sectors of the North Sea.
A special topic of the negotiations was the resumption of operations of Gazprom and Wintershall in Libya. Wintershall AG, a joint venture between Gazprom International and Wintershall Holding GmbH, has been involved in the production within oil concessions C96 and C97 since 2007. In February 2011, the production was suspended due to difficult situation in the country and resumed periodically as the circumstances permitted.
Currently the parties intend to reach the pre-crisis production rates.
BASF SE portfolio includes oil and gas, chemicals, synthetics, and petroleum derivatives.
BASF and Wintershall Holding GmbH, a wholly-owned subsidiary of BASF, are Gazprom’s partners in Nord Stream and Nord Stream 2 projects and the development of the Yuzhno-Russkoye oil, gas and condensate field and Blocks 1A, 4A and 5A in the Achimov reservoirs of the Urengoyskoye oil, gas and condensate field.
In 2015, Gazprom and BASF/Wintershall closed the asset swap deal, according to which Gazprom increased its share in WINGAS, WIEH, and WIEE to 100%, as well as received a 50% stake in WINZ, a company involved in hydrocarbon exploration and production in the North Sea. Wintershall, in its turn, obtained 25.01% in the project for developing Blocks 4A and 5A in the Achimov deposits of the Urengoyskoye field.
Gazprom International, as the sole foreign operator for implementing Gazprom's projects for prospecting, exploration and development of oil and gas fields, owns its share in WINZ (the North Sea projects) and Wintershall AG (oil concessions C96 and C97 in Libya).
C96 and C97 are among the oldest oil concessions in Libya. The contracts for them were signed in 1966 for a term of 50 years and later extended until 2026. The production started in 1970s. 9 fields were discovered within these blocks. The biggest one, As-Sarah (C96), was brought into production in 1988.