BASF AG and Gazprom have established Gazprom YRGM Trading within the Agreement on Share Swap between BASF and Gazprom in the authorized capital of Severneftegazprom.
Gazprom YRGM Trading will purchase gas produced in the Yuzhno-Russkoye field from Sevmorneftegaz and sell it in amount, which is proportional to a BASF AG stake in the field development project.
Pursuant to the Agreement on Share Swap Gazprom owns a 100 percent of ordinary shares in Gazprom YRGM Trading, BASF AG holds one preferred share.
The Board of Directors includes three representatives of Gazprom and BASF, accordingly. Stanislav Tsygankov, Head Gazprom International Business Department was elected to the post of the Board of Directors Chairman of Gazprom YRGM Trading.
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.
The Agreement on Share Swap between Gazprom and BASF AG was signed in 2007. According to the Agreement, Gazprom increased its stake in the authorized capital of Wingas GmbH up to 50 percent minus one share. In its turn, BASF AG acquired a 25 percent stake minus one voting share and one share without voting rights, which is an equivalent to a 10 percent stake in the project's economy.
During the deal closing specified by the Agreement, Gazprom Group will receive a 49 percent stake in Wintershall AG authorized capital. Wintershall AG holds licenses to develop and produce hydrocarbons in the frames of the concessional agreements in Libya).
Severneftegazprom, Gazprom's 100 percent subsidiary, is the license owner for hydrocarbon exploration, development and production of the Yuzhno-Russkoye gas condensate field.
The proven natural gas reserves of the Yuzhno-Russkoye gas field exceed 600 bcm. The start-up complex was put into operation in October 2007.