September 4, 2015 / 5:47 AM / 2 years ago

BASF, Gazprom revive gas-asset swap in surprise deal

FRANKFURT, Sept 4 (Reuters) - German chemicals group BASF and Gazprom agreed to revive a deal that collapsed in late 2014 to swap gas assets that will see BASF exit gas trading and storage and the Russian energy giant expanding into Western Europe, BASF said on Friday.

BASF said the surprise deal would be based on conditions already agreed to by the two firms in 2013 and would conclude by the end of 2015.

The two firms abandoned the swap agreement in late 2014 after companies across Europe suffered under tensions between Moscow and the West, particularly due to the conflict in Ukraine.

The swap deal gives Russia greater access to gas trading and storage in Germany, in return for BASF’s oil and gas unit Wintershall getting more stakes in Siberian gas fields.

Wintershall will transfer a jointly operated natural gas trading and storage business fully to Russian state-controlled gas producer Gazprom. Gazprom will receive a 50 percent share in Wintershall Noordzee B.V., which explores for and produces oil and gas in the North Sea.

Reporting by Thomas Atkins; Editing by Biju Dwarakanath

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