Alexey Miller, Chairman of the Management Committee of Gazprom, had a meeting with Dr. Jurgen Hambrecht, Chairman of the Board, BASF AG, in the town of Ludwigshafen, during Gazprom's delegation visit to Germany.

The parties discussed bilateral cooperation prospects. The main issue discussed was the progress of the Achimgaz company’s business. Achimgaz is a joint venture of Gazprom and Wintershall AG (a wholly owned subsidiary of BASF AG). Alexey Miller and Jurgen Hambrecht noted that technical and engineering work is conducted according to the mutually agreed schedule. Currently Achimgaz is concluding a detailed technical research and is about to start natural gas and gas condensate production.

The cooperation prospects in another joint venture of Gazprom and Wintershall AG - Wingas GmbH - were also discussed. The representatives of Wingas GmbH are members of the working group drafting the feasibility study of the North European Gas Pipeline construction. The parties agreed to contemplate the possibility of Wingas GmbH's participation in this project's implementation.

Alexey Miller and Jurgen Hambrecht also exchanged views on the issues of future cooperation of Gazprom and BASF AG in natural gas production, gas chemicals, gas transportation infrastructure development, scientific and technical cooperation.

Reference:

BASF AG is one of the leading chemical companies in the world. BASF AG's production is concentrated in three businesses: the chemicals, synthetic materials, plants protection goods, oil and natural gas production. The company's turnover in 2003 was Euro 33 billion. BASF AG's shares are traded on stock exchanges in Frankfurt, London, New York, Paris, Zurich.

Wintershall AG is a wholly owned subsidiary of BASF AG, involved in the energy sector. Gazprom and Wintershall AG have been cooperating for more than 13 years through their daughter companies - Wingas (35% and 65% of capital), and WIEH (50% and 50% partnership). Gas supplies in 2003 amounted to 17.2 billion cubic meters.

Wingas GmbH is involved in:

• Russia-produced natural gas sales and distribution in Germany
• Purchases of natural gas from western companies
• Sales of Russian gas on the UK spot market
• Construction and operation of gas pipelines and distribution networks, construction of underground gas storage facilities
• Gas transmission within Germany.

Achimgaz was incorporated in July 2003 by Gazprom and Wintershall AG (50% and 50% partnership). The objective of the joint venture is the development the test site of Achimov deposits in the Urengoy gas, oil and condensate field on the basis of a service contract.

The deposit is planned to be developed for over 43 years, production during this period is estimated at 200 billion cubic meters of gas and 40 million tons of condensate. During the continuous phase of production, 8.3 billion cubic meters of gas and 2.8 million tons of condensate will be produced annually.

Achimov deposits are at the depths of down to 3150-3800 meters, and are geologically more complex than the currently developed Senoman and Valanzhinsk deposits. Wintershall AG has the modern technology, necessary equipment and experience of sub-horizontal drilling at extra depths and in difficult geological conditions, which is very important in developing the Urengoy's Achimov deposits. The deposits are broken into six parts, which will be developed stage by stage.

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