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 in accordance with SFAS 69 (Disclosure of Oil and Gas Producing Activities) and 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 Severneftegazprom (SNG), the company which holds the production license. SNG is accounted for using the equity method. Marketing of the natural gas is carried out by a separate, fully consolidated company. For the Achimgaz project, in which BASF has an interest of 50%, full field development was started 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%. The German Wintershall subsidiary with production and exploration rights to the Libyan onshore concessions 96 and 97, in which BASF has an interest of 51%, is accounted for as associated company for using the equity method as per IAS 28.

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.

 

 

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)

 

equity-accounted income 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:

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.