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UPDATE 1-Wintershall CEO: Ukraine crisis won't scupper Gazprom deal

Thu, 13th Mar 2014 13:31

* Says moving closer to Russia as due to gain gas fieldaccess

* Criticises EU for delaying pipeline progress

* Focuses also on new regions in Middle East

By Vera Eckert

KASSEL, Germany, March 13 (Reuters) - BASF oiland gas unit Wintershall said the Ukraine crisis would notscupper an asset-swap agreement with Gazprom whichwould give Russia greater access to gas trading and storage inGermany.

Wintershall Chief Executive Rainer Seele said on Thursdaythat the companies had all the necessary approvals and thearrangement, agreed in 2012 and approved late last year, was nowonly a matter of operational implementation.

"I see no impact from the Ukraine crisis on the process," hetold a news conference.

The deal will give Wintershall more access to Siberian gasfields as it focuses on its role as a producer rather thantransporter and trader of gas.

Board member Gerhard Koenig, in charge of trading, said:"Our customers are expecting the deal. Gazprom sees it as aspringboard for further growth in Europe and Germany."

Wintershall said it will see sales fall this year due to thedivestment in favour of Gazprom inside Germany, but that it willcompensate for that by reaping more benefits from oil and gasproduction in its core regions across the globe.

Under the swap deal, Russian state-controlled gas producerGazprom will get full control of one of Europe's leading gasstorage firms Astora and gas trader Wingas, second to E.ON in Germany's gas market, Europe's biggest.

Wintershall will gain 25 percent of the Siberian Achimov IVand V blocks, where current production is around 2 billion cubicmetres (bcm) a year and is set to quadruple to 8 bcm by 2018.

"We're getting closer to Gazprom in oil and gas, in Russiaand Europe ... We know that we are good together," Seele said.

Seele also said that Wintershall's 50 percent stake inGascade, a gas pipeline grid company which it shares withGazprom and was exempted in the swap deal, was not up for sale.

SOUTH STREAM

Board member Mario Mehren said that, notwithstandingquestions raised in Brussels over Gazprom's new South Streampipeline, work on the plan was on time and the first tranchewould be completed by the end of 2015.

Wintershall is a shareholder along with France's EDF and Italy's Eni. It is also part of the NordStream consortium which has been operating a huge pipeline forRussian gas via the Baltic Sea since 2011.

Seele criticised moves by the EU Energy Commissioner to slowprogress on an onwards link to Nord Stream, Opal, and moredelays on technical issues surrounding South Stream in thelatest sign of strains in the energy links between Moscow andthe European Union, caused by Russian forces' seizure of Crimea.

"Every pipeline is necessary as it will bring more gassecurity. (Commissioner Guenther) Oettinger needs to rethink hisstrategy," he said.

Opal, which runs to the Czech Republic and can hold 36 bcmof gas, can only be half filled due to a regulatory spat.

Seele also said an agreement to explore oil and gas in NorthAfrica with BP was agreed on March 12 but there were nodetails available. "We'll talk about it later in 2014," he said.

Wintershall gave no indication when it might resume more oilshipments from Libya where export terminal strikes have blockedtransfer of its output since July 2013, and where only itsoffshore fields are producing.

But it pegged great hopes on upcoming expansions in Norway,Argentina's unconventional gas resources, Abu Dhabi and Qatar.

More News
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*

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2 May 2024 12:02

LONDON MARKET MIDDAY: FTSE 100 shines but "mixed feelings" after Fed

(Alliance News) - London's FTSE 100 was solidly higher on Thursday, outperforming European peers, as earnings from the likes of Shell and Standard Chartered impressed.

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1 May 2024 18:30

Sector movers: Oil, Autos drag on FTSE 350

(Sharecast News) - Weakness in the oil patch and among select cyclicals dragged on the FTSE 350 in the middle of the week.

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30 Apr 2024 14:38

UK earnings, trading statements calendar - next 7 days

Wednesday 1 May 
Anexo Group PLCFull Year Results
Cambridge Cognition Holdings PLCFull Year Results
Computacenter PLCTrading Statement
Georgia Capital PLCQ1 Results
GSK PLCQ1 Results
Haleon PLCTrading Statement
HSS Hire Group PLCFull Year Results
Intelligent Ultrasound Group PLCFull Year Results
Maintel Holdings PLCFull Year Results
Next PLCTrading Statement
Smith & Nephew PLCTrading Statement
Thursday 2 May 
Endeavour Mining PLCQ1 Results
First Tin PLCTrading Statement
Hiscox LtdTrading Statement
International Personal Finance PLCTrading Statement
Kerry Group PLCTrading Statement
Lancashire Holdings LtdTrading Statement
Melrose Industries PLCTrading Statement
NAHL Group PLCFull Year Results
Reach PLCTrading Statement
Shell PLCQ1 Results
Smiths News PLCHalf Year Results
Smurfit Kappa Group PLCTrading Statement
Spectris PLCTrading Statement
Standard Chartered PLCQ1 Results
TI Fluid Systems PLCQ1 Results
Friday 3 May 
InterContinental Hotels Group PLCTrading Statement
Mondi PLCTrading Statement
Trainline PLCFull Year Results
Monday 6 May 
no events scheduled 
Tuesday 7 May 
Arecor Therapeutics PLCFull Year Results
BP PLCQ1 Results
Ebiquity PLCFull Year Results
IWG PLCTrading Statement
Kosmos Energy LtdQ1 Results
MaxCyte IncQ1 Results
Trident Royalties PLCTrading Statement
Vaalco Energy IncQ1 Results
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

Read more
29 Apr 2024 14:21

Norway's wealth fund falls short on climate ambitions, NGO says

OSLO, April 29 (Reuters) - Norway's $1.6 trillion sovereign wealth fund, the world's largest, is falling short on its climate ambitions by failing to back multiple shareholder proposals pushing oil companies to cut their greenhouse gas emissions, a non-governmental organization said in a report said on Monday.

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24 Apr 2024 19:30

Trans Mountain oil shippers raise concerns about risk of delay to full service

April 23 (Reuters) - Some shippers on Canada's Trans Mountain expansion project are raising concerns that the long-delayed oil pipeline will not be fully in service by its projected start date of May 1, according to a letter to the Canada Energy Regulator on Tuesday.

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24 Apr 2024 13:24

Pressure on gas and LNG prices to help switch from coal, says J.P. Morgan

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24 Apr 2024 09:58

Aker BP Q1 beats forecast as costs fall, Tyrving to start sooner

OSLO, April 24 (Reuters) - Norwegian independent oil company Aker BP on Wednesday posted higher-than-expected net profit for the first quarter as costs fell, and said its Tyrving field development could start production sooner than previously planned.

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24 Apr 2024 05:38

Aker BP Q1 beats forecast on record output, lower cost

OSLO, April 24 (Reuters) - Norwegian independent oil company Aker BP on Wednesday posted a higher-than-expected net profit for the first quarter as production hit a record while costs fell.

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18 Apr 2024 14:45

BP's gas and renewables boss steps down, as CEO shrinks leadership

LONDON, April 18 (Reuters) - BP said on Thursday its head of natural gas and low carbon energy Anja-Isabel Dotzenrath will step down after just over two years, while CEO Murray Auchincloss announced plans to simplify its management structure.

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18 Apr 2024 14:12

UK shareholder meetings calendar - next 7 days

Friday 19 April 
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Travis Perkins PLCAGM
Tuesday 23 April 
AIQ LtdAGM
NatWest Group PLCAGM
Taylor Wimpey PLCAGM
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abrdn PLCAGM
abrdn Equity Income Trust PLCAGM
AssetCo PLCAGM
Breedon Group PLCAGM
British American Tobacco PLCAGM
Bunzl PLCAGM
Coro Energy PLCAGM
Croda International PLCAGM
Entain PLCAGM
Greencoat UK Wind PLCAGM
Primary Health Properties PLCAGM
Serco Group PLCAGM
Synectics PLCAGM
Thursday 25 April 
AFC Energy PLCAGM
Admiral Group PLCAGM
Beazley PLCAGM
BP PLCAGM
CLS Holdings PLCAGM
CRH PLCAGM
Dalata Hotel Group PLCAGM
Develop North PLCAGM
Drax Group PLCAGM
Everest Global PLCAGM
Greencoat Renewables PLCAGM
Hammerson PLCAGM
Helios Towers PLCAGM
Hikma Pharmaceuticals PLCAGM
International Biotechnology Trust PLCAGM
London Stock Exchange Group PLCAGM
Manx Financial Group PLCAGM
Mattioli Woods PLCGM re Pollen Street Capital Ltd takeover
Persimmon PLCAGM
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Schroders PLCAGM
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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

Read more
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LONDON MARKET MIDDAY: FTSE 100 up despite hawkish Fed rates outlook

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18 Apr 2024 09:04

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BP cuts size of executive team, shakes up structure

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Shell urges investors to reject shareholder group's climate demands

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