The asset swap BASF and Gazprom first announced in 2012 is now set to be completed by the end of 2015, a year behind the initial schedule. The deal approved by the European Commission at the beginning of December 2013 was put on ice at the end of 2014 as tension over Ukraine reached its height.

With the swap, BASF will exit the gas trading and storage business while expanding its production of oil and gas. As before, the transaction will be financially retroactive to Apr. 1, 2013. Terms foresee Wintershall, a wholly BASF subsidiary, receiving the economic equivalent of 25% plus one share of two blocks of the Achimov formation of the Urengoy natural gas and condensate field in western Siberia.

The two blocks have total hydrocarbon resources of 274 billion cbm of natural gas and 74 million t of condensate, equal to 2.4 billion barrels of oil equivalent (boe). From 2018, an annual plateau production of at least 8 billion cbm of gas is expected.

In return for the exploration asssets, Wintershall will transfer its share in the currently jointly operated natural gas trading and storage business to Gazprom, including its 50% share of gas trading companies Wingas, Wintershall Erdgas Handelshaus Berlin (WIEH) and Wintershall Erdgas Handelshaus Zug (WIEE).

The swap also includes shares in Astora, which operates the natural gas storage facilities in Rehden and Jemgum, Germany, as well as a share in the natural gas storage in Haidach, Austria.

Gazprom will also take a 50% share in the activities of Wintershall Noordzee, which is active in the exploration and production of oil and gas in the southern North Sea (Netherlands, UK and Denmark). Together the activities contributed around €12.2 billion to sales and around €260 million to EBITDA of BASF group in 2014 and about €7.2 billion and €240 million respectively in the first half of 2015. The gas transportation activities will continue.

The world’s largest chemical producer and Russia’s largest gas producer began their collaboration in 1990.