Standardized measure of discounted future net cash flows relating to proven oil and gas reserves (SMOG)

The following information has been prepared in accordance with SFAS 69 and the regulations of the Securities and Exchange Commission, which require the standardized measure of discounted future cash flows based on sales prices, costs and statutory interest rates. The proven reserves are valued at the average price calculated from the prices on the first day of the month. The values calculated in this way are subject to a 10% annual discount rate.

The projection should not be viewed as a realistic estimate of future cash flows. It does not take into account planned transactions such as the asset swaps with Statoil and Gazprom agreed upon for 2013. BASF will receive the producing fields Brage, Gjøa and Vega from Statoil. In return, Statoil will receive a share in the Edvard Grieg development project as well as financial compensation. From Gazprom, we will receive 25% plus a share in two additional Achimov Formation blocks in the Urengoy Field in Western Siberia, subject to approval by the appropriate authorities. Gazprom will receive the entire natural gas trading and storage business – which was previously jointly operated – as well as a share of 50% in Wintershall Noordzee B.V. Furthermore, the total value of future net cash flows should not be interpreted as representing the current enterprise value.

Material revisions of estimates of proven reserves may occur in the future, development and production of the reserves may not occur in the period assumed, actual prices realized are expected to vary significantly from those used and actual costs may also vary.

The company’s investment and operating decisions are not based on the information presented below, but on a wide range of reserve estimates, and on different price and cost assumptions from those reflected in this information.

Beyond the above considerations, the “standardized measure of future net cash flows” is also not directly comparable with asset balances appearing elsewhere in the Consolidated Financial Statements because any such comparison would require a reconciling adjustment.

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Standardized measure of discounted future cash flows 2012 (million €)

 

Germany

Rest of Europe

Russia, Caspian Sea region

North Africa, Middle East

South America

Total

Future revenues

4,667

2,386

9,661

19,011

2,125

37,850

Future production/development costs

1,997

2,134

1,862

3,677

1,094

10,764

Future income taxes

625

131

1,295

12,782

245

15,078

Future net cash flows

2,045

121

6,504

2,552

786

12,008

Discounted to present value at a 10% annual rate

742

96

2,472

850

332

4,492

Standardized measures of discounted future cash flows

1,303

25

4,032

1,702

454

7,516

Minority interests

704

704

Standardized measures of discounted future cash flows after minority interests

1,303

25

4,032

998

454

6,812

Thereof at-equity companies

933

933

Standardized measures of discounted future cash flows after minority interests and at-equity companies

1,303

25

3,099

998

454

5,879

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Standardized measure of discounted future cash flows 2011 (million €)

 

Germany

Rest of Europe

Russia, Caspian Sea region

North Africa, Middle East

South America

Total

Future revenues

4,671

1,519

7,989

19,765

1,985

35,929

Future production/development costs

1,914

1,127

1,260

3,320

989

8,610

Future income taxes

666

255

1,062

13,780

109

15,872

Future net cash flows

2,091

137

5,667

2,665

887

11,447

Discounted to present value at a 10% annual rate

764

(18)

2,223

892

339

4,200

Standardized measures of discounted future cash flows

1,327

155

3,444

1,773

548

7,247

Minority interests

738

738

Standardized measures of discounted future cash flows after minority interests

1,327

155

3,444

1,035

548

6,509

Thereof at-equity companies

832

832

Standardized measures of discounted future cash flows after minority interests and at-equity companies

1,327

155

2,612

1,035

548

5,677

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Summary of changes in standardized measure of discounted future net cash flows 2012 (million €)

 

Germany

Rest of Europe

Russia, Caspian Sea region

North Africa, Middle East

South America

Total

Balance as of January 1

1,327

155

3,444

1,773

548

7,247

Sales and transfers of oil and gas produced, net of production costs

(448)

(305)

(865)

(2,609)

(196)

(4,423)

Net changes in price and in development and production costs

140

120

971

996

(50)

2,177

Extension, discoveries and improved recovery, less related costs

(133)

37

(96)

Revisions of previous quantity estimates

89

131

332

(46)

236

742

Development costs incurred during the period

78

171

117

35

37

438

Changes in estimated future development costs

(62)

(187)

(235)

(46)

(83)

(613)

Purchase/sale reserves

Net change in income taxes

21

50

(144)

564

(94)

397

Accretion of discounts

159

28

375

1,035

56

1,653

Other

(1)

(5)

(6)

Balance as of December 31

1,303

25

4,032

1,702

454

7,516

Minority interests

704

704

Standardized measures of discounted future cash flows (SMOG) after minority interests

1,303

25

4,032

998

454

6,812

Thereof at-equity companies

933

933

Standardized measure of discounted future cash flows after minority interests and at-equity companies

1,303

25

3,099

998

454

5,879

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Summary of changes in standardized measure of discounted future net cash flows 2011 (million €)

 

Germany

Rest of Europe

Russia, Caspian Sea region

North Africa, Middle East

South America

Total

Balance as of January 1

786

61

2,821

1,800

535

6,003

Sales and transfers of oil and gas produced, net of production costs

(432)

(249)

(784)

(710)

(214)

(2,389)

Net changes in price and in development and production costs

600

195

956

2,667

163

4,581

Extension, discoveries and improved recovery, less related costs

6

6

Revisions of previous quantity estimates

413

250

31

25

61

780

Development costs incurred during the period

83

153

36

8

28

308

Changes in estimated future development costs

(19)

(132)

(31)

7

(80)

(255)

Purchase/sale reserves

395

395

Net change in income taxes

(196)

(135)

(206)

(2,504)

1

(3,040)

Accretion of discounts

93

6

226

480

54

859

Other

(1)

(1)

Balance as of December 31

1,327

155

3,444

1,773

548

7,247

Minority interests

738

738

Standardized measures of discounted future cash flows (SMOG) after minority interests

1,327

155

3,444

1,035

548

6,509

Thereof at-equity companies

832

832

Standardized measure of discounted future cash flows after minority interests and at-equity companies

1,327

155

2,612

1,035

548

5,677