Russia partnership with tradition
Wintershall Dea has been active in Russia for more than 25 years. Together with our Russian partners, we have been able to establish a successful gas and oil production. This production is the most important pillar in Wintershall Dea's portfolio. Natural gas production secures energy supply for households in Europe. In the joint ventures Achimgaz, Achim Development, Severneftegazprom and Volgodeminoil we continue to work on the future of natural gas and crude oil production.
In 1990, the BASF subsidiary Wintershall signs a long-term agreement with the world's largest producer of natural gas, Gazprom, for the marketing of Russian natural gas in Germany and other European countries. In Berlin, Wintershall Erdgas Handelshaus GmbH is founded as a joint venture between Wintershall and Gazprom.
In 1992, the Volgodeminoil joint venture is founded. Wintershall Dea and RITEK, a subsidiary of LUKOIL, each hold a 50 per cent stake in the joint venture. It is the first Western European-Russian joint venture in the oil and gas industry. North of the city of Volgograd, Volgodeminoil produces crude oil and natural gas from three licence areas with a size of more than 13,600 square kilometres.
Wintershall and Gazprom establish the WINGAS joint venture, which ensures more competition on the German natural gas trading market. The STEGAL (Sachsen-Thüringen-Erdgas-Anbindungsleitung) and MIDAL (Mitte-Deutschland-Anbindungs-Leitung) gas pipelines are completed. Western Europe's largest natural gas storage facility in Rehden goes into operation.
Over the last 25 years, we've done a lot together. Starting with gas trading in 1990, we have now established cooperation along the entire value chain. Our mutual success is based on trust.
Wintershall and Gazprom establish the Achimgaz joint venture to develop Block 1A of the Achimov Formation in the Urengoy field. Achimgaz starts production in 2008 and can produce up to 29 million cubic metres of natural gas and 12,000 tonnes of condensate every day. Over the next few years, the number of wells is set to increase to 110 in order to produce more than 8 billion cubic metres of gas annually.
Wintershall and Gazprom start the production of natural gas from the Yuzhno-Russkoye field 3,500 kilometres northeast of Moscow. The Severneftegazprom joint venture produces around 70 million cubic metres of gas per day. By spring 2019, total production from the Yuzhno-Russkoye field amounted to around 270 billion cubic metres of gas.
The first gas flows through Nord Stream, Europe's largest energy infrastructure project, with Gazprom and BASF/Wintershall as shareholders. The 1220-km-long natural gas pipeline connects the Siberian gas reserves directly with Germany and has a transport capacity of up to 55 billion cubic meters of natural gas per year.
Wintershall grows at the source and acquires shares in blocks 4A and 5A in the Achimov Formation in Western Siberia. At the same time, the gas trading and storage business is fully transferred to Gazprom. In addition, it is agreed to extend the Nord Stream pipeline with two additional strings. This will increase the total capacity of the two transport pipelines in future to 110 billion cubic metre of natural gas.
Even after the merger of Wintershall and DEA, Russia remains the region with the largest planned increase in production. Achim Development, currently the latest joint venture between Wintershall Dea and Gazprom, plans to begin development of blocks 4A and 5A in the Achimov Formation in the Urengoy field as planned. In future, 15.5 billion cubic metres of natural gas are set to be produced here at plateau level.