25 – Contingent liabilities and other financial obligations

The contingent liabilities listed below are stated at nominal value:

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Contingent liabilities (million €)

 

2013

2012

Bills of exchange

8

4

Guarantees

61

73

Thereof to associated companies

8

8

Warranties

47

63

Thereof to associated companies

20

36

Collateral granted on behalf of third-party liabilities

3

4

Total

119

144

BASF has a stake of 15.5% in the project company Nord Stream AG, Zug, Switzerland, whose purpose is to construct and operate a natural gas pipeline through the Baltic Sea from Vyborg, Russia, to Greifswald, Germany. The construction of the second pipeline was completed in 2012. The Nord Stream pipeline has thus attained its full transport capacity of 55 billion cubic meters of natural gas per year.

In conjunction with the project financing, the lending banks were issued two guarantees which were limited to BASF’s proportional stake in the project. BASF was released from the first guarantee in 2012. It is assumed that no claims will be made against the outstanding guarantee.

In accordance with the provisions of Section 17 of the Republic of Ireland Companies (Amendments) Act 1986, BASF SE gives irrevocable guarantees with respect to the liabilities, as referred to in Section 5(c)(ii) of that Act, of the subsidiary company BASF Ireland Ltd., Dublin, Republic of Ireland. As of December 31, 2013, the liabilities of BASF Ireland Ltd. totaled €22 million and €19 million as of December 31, 2012.

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Other financial obligations (million €)

 

2013

2012

Construction in progress

5,921

6,618

Thereof purchase commitments

2,056

2,164

for the purchase of intangible assets

14

10

Obligation arising from long-term leases (excluding finance leases)

1,397

1,239

Payment and loan commitments and other financial obligations

82

126

Total

7,400

7,983

Assets used under long-term leases

Assets used under long-term leases primarily concern buildings and IT infrastructure.

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Obligations arising from long-term leases (Excluding finance leases) (million €)

2014

326

2015

276

2016

198

2017

150

2018

113

2019 and thereafter

334

Total

1,397

Purchase obligations from long-term natural gas and raw material supply contracts

The Company has entered into long-term purchase contracts for natural gas in the Natural Gas Trading business sector which are subject to continual price adjustments. These purchase obligations mainly relate to long-term supply contracts with natural gas purchasers with terms between one and 19 years.

The Company purchases raw materials via long-term contracts and on spot markets. The fixed purchase obligations of long-term purchase contracts with a remaining term of at least one year as of December 31, 2013, are as follows:

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Purchase obligations from natural gas and raw material supply contracts (million €)

BASF Group excluding
the disposal group

Disposal group

2014

8,118

8,411

2015

5,245

6,535

2016

3,908

6,462

2017

2,940

6,555

2018

2,676

6,960

2019 and thereafter

7,933

98,666

Total

30,820

133,589

The purchase obligations from natural gas and raw material supply contracts of the natural gas trading disposal group are separately reported in the above table on account of their importance.