Wintershall to invest €100 mln into gas and condensate production in Russia in 2011

The German oil and gas company Wintershall (gas subdivision of BASF concern) in 2011 plans to invest €100 mln into the gas and condensate production projects in Russia, the managing director of Wintershall Russland Gmbh M. Hoffman told RIA Novostri.
Earlier the chairman of Wintershall R. Seele said that the company plans to invest into the development of the Urengoi gas deposit in Russia €1 bln.
M. Hoffman said that the total amount of the investment of Wintershall in Russia might increase taking into account the new Russian projects of the company. According to her, it is about the 2 joint projects with Gazprom – expansion of works on the development of the Achimovsky layers at the Urengoi deposit and cooperation on the South Stream. She said that the news on this issue might appear closer to the end of the year.
Gazprom and Wintershall signed on March 10th a memorandum presupposing the possibility of the German company’s participation in the development on the parity basis with the Russian holding of 2 additional sites at the Urengoi deposit. In its turn, Gazprom will obtain a stake in the projects of Wintershall on geological exploration and production in the North Sea.
It was reported that Wintershall plans to produce at the Urengoi deposit 8 bln cubic meters of gas a year taking into account the new blocks. The operator of the development is Achimgas CJSC, a JV of Gazprom and Wintershall founded on the parity basis in July 2003.
At the present time the South Stream is being realized by Gazprom and Eni that have founded on the parity basis the company South Stream AG to construct the sea part of the gas pipeline. In March the head of Gazprom A. Miller and the chairman of BASF SE J. Hambrecht signed a memorandum of understanding presupposing the joining of Wintershall with the 15% stake to the realization of the project’s sea part. Gazprom will keep its 50% stake in the project. BASF is expected to join the stakeholders by the end of the year, Mr. Miller says.  
Moreover, Wintershall and Gazprom agreed to prepare by the end of the year the contracts on gas supply by the South Stream. By these contracts Wintershall plans to strengthen its positions in Europe, Mr. Seele said earlier.
The project South Stream is being realized aimed at the diversification of natural gas supply routes to the European consumers and presupposes the construction of a gas pipeline via the water area of the Black Sea to the countries of South and Central Europe. The total project capacity of the sea part of the South Stream is 63 bln cubic meters a year. The about 900 km long sea site is planned to go by the bottom of the Black Sea from the compressor station Russkaya on the Russia’s coast to the coast of Bulgaria. The sea site construction’s cost might amount to €15.5 bln.

http://www.rosinvest.com/news/803781/
Translated by Galiya Davletgareeva