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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
6 Feb 2024 12:10

LONDON MARKET MIDDAY: BP tops FTSE 100 index on buyback promise

(Alliance News) - The FTSE 100 was higher at midday Tuesday, despite lingering unease in equity markets on US interest rate worries, while BP led the way among London's large-caps as it announced a buyback plan.

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6 Feb 2024 09:04

TOP NEWS: BP promises buybacks and hikes dividend despite profit fall

(Alliance News) - BP PLC on Tuesday reaffirmed it is sticking to its commitment to share buybacks despite reporting a profit decline amid a fall in oil prices.

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6 Feb 2024 08:53

LONDON MARKET OPEN: BP jumps after unveiling share buyback

(Alliance News) - The FTSE 100 in London opened higher on Tuesday, with oil major BP at the top of the index, thanks to its new share buyback programme.

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6 Feb 2024 07:47

LONDON BRIEFING: BP promises buyback despite drop in profit

(Alliance News) - Stocks in London are called to open higher, ahead of a slew of construction purchasing managers' index readings from the eurozone, the UK and Germany.

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6 Feb 2024 07:02

BP unveils $1.75bn buyback as 2023 profits halve on weaker oil price

(Sharecast News) - Shares in BP surged on Tuesday as the energy giant announced a $1.75bn share buyback despite a slump in annual profits as oil prices fell during 2023 from the spike caused by Russia's invasion of Ukraine.

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2 Feb 2024 17:12

LONDON MARKET CLOSE: Stocks mixed as US jobs data dashes rate cut hope

(Alliance News) - Stock prices in London closed mixed, after hotter-than-expected US jobs data hit already precarious investor sentiment and all but ensured the Federal Reserve will not be cutting interest rates next month.

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2 Feb 2024 13:14

BP appoints Kate Thomson as its permanent finance chief

(Sharecast News) - BP announced the appointment of Kate Thomson as its new, permanent chief financial officer on Friday, effective immediately.

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2 Feb 2024 12:27

TOP NEWS: BP promotes Kate Thomson as permanent finance chief

(Alliance News) - BP PLC on Friday named Kate Thomson as its permanent chief financial officer, after being in the interim role since September.

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2 Feb 2024 12:09

LONDON MARKET MIDDAY: Airlines up but oil falls on Middle East talks

(Alliance News) - Stock prices in London were higher at midday Friday, ahead of the afternoon's US jobs data, as earnings from tech behemoths overnight lifted investor morale.

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2 Feb 2024 08:54

LONDON MARKET OPEN: European stocks lifted on Wall Street's gains

(Alliance News) - Stock prices in London opened higher on Friday, closing of a busy week of monetary policy decisions.

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1 Feb 2024 17:03

LONDON MARKET CLOSE: Stocks down on hawkish BoE interest rates hold

(Alliance News) - Stock prices in London closed down on Thursday after the Bank of England left interest rates on hold in a split decision that was hawkish on expectations of rate cuts.

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1 Feb 2024 12:22

LONDON MARKET MIDDAY: BoE keeps bank rate on hold in split decision

(Alliance News) - London's FTSE 100 was on the up on Thursday afternoon after the Bank of England left interest rates on hold on Thursday, in a split decision.

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1 Feb 2024 10:06

New UK oil and gas exploration licences approved in the North Sea

(Alliance News) - The UK's oil and gas regulator has awarded 24 new exploration licences to 17 separate companies in a move that has been welcomed by a trade body but condemned by climate campaigners.

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1 Feb 2024 08:50

LONDON MARKET OPEN: Shells begins USD3.5 billion buyback; eyes on BoE

(Alliance News) - Stock prices in London opened mixed, ahead of the Bank of England's first interest rate decision of the year.

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30 Jan 2024 15:28

UK earnings, trading statements calendar - next 7 days

Wednesday 31 January 
Aberforth Smaller Companies Trust PLCFull Year Results
abrdn Private Equity Opportunities Trust PLCFull Year Results
Ecora Resources PLCTrading Statement
GSK PLCFull Year Results
ITM Power PLCHalf Year Results
NWF Group PLCHalf Year Results
Thursday 1 February 
Airtel Africa PLCTrading Statement
AG Barr PLCTrading Statement
BT Group PLCTrading Statement
Cranswick PLCTrading Statement
Gem Diamonds LtdTrading Statement
Glencore PLCTrading Statement
JTC PLCTrading Statement
Rank Group PLCHalf Year Results
Shell PLCFull Year Results
TClarke PLCTrading Statement
Friday 2 February 
YouGov PLCTrading Statement
Monday 5 February 
Home REIT PLCTrading Statement
Porvair PLCFull Year Results
Trident Royalties PLCTrading Statement
Vodafone Group PLCTrading Statement
Tuesday 6 February 
Alumasc Group PLCHalf Year Results
BP PLCFull Year Results
Filtronic PLCHalf Year Results
Mattioli Woods PLCHalf Year Results
Renishaw PLCHalf Year Results
Virgin Money UK PLCTrading Statement
  
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