Supplementary Information on the Oil & Gas Segment

(Unaudited)

The following tables provide supplemental information on the Exploration & Production business sector of the Oil & Gas segment. In the absence of detailed disclosure rules in this area under IFRS, the Group has elected to voluntarily disclose the following information, which would have been required under SFAS No. 69 (Disclosure of Oil and Gas Producing Activities) and by the Securities and Exchange Commission. In order to present economically meaningful reporting of the cooperation with Gazprom in the Yuzhno Russkoye and Achimgaz projects, several modifications have been made to SFAS 69. BASF has an interest of 35% in the economic rewards of the Yuzhno Russkoye field through OAO Severneftegazprom (SNG), the company which holds the production license. SNG is accounted for using the equity method. A project company, which is fully consolidated, was established for these operations. For the Achimgaz project, in which BASF has an interest of 50%, full field development was begun after the successful completion of the pilot phase in 2011.

In the following overviews, BASF’s stake in both projects is included under “Russia.” In addition, the values for SNG, which is accounted for using the equity method, are presented separately.

All fully consolidated subsidiaries are included with 100%. As a result of the application of IFRS 10, the Wintershall subsidiary, which was fully consolidated in the previous year, and holds the production and exploration rights to the Libyan onshore concessions 96 and 97, on which BASF holds a 51% share, is now accounted for using the equity method as associated company according to IAS 28. The stake which was part of the asset swap with Gazprom in 2007 is no longer taken into account.

The following table provides an overview of the most important differences between the information given for the Exploration & Production business sector in the Consolidated Financial Statement of the BASF Group and the supplemental information for the Oil & Gas segment.

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BASF reporting

Supplementary information on Oil & Gas

Other activities in Exploration & Production
(e.g., trading business and joint venture services)

included

not included

Activities accounted for using the equity method (Severneftegazprom, Wolgodeminoil and Wintershall AG)

earnings from the equity method included in EBIT

included on a proportional basis

Corporate overhead costs and financing costs

included

not included

The regions include the following countries with operating activities:

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Region

Exploration & Production

Exploration

Russia

Russia

 

Rest of Europe

United Kingdom, the Netherlands, Norway

Denmark

North Africa/Middle East

Libya

Abu Dhabi, Qatar

South America

Argentina

Chile

Statistical information on the concession areas or the number of wells is not given due to its limited informative value.