2.3 – Joint ventures and associated companies

The only material joint venture accounted for using the equity method is BASF-YPC Company Ltd., Nanjing, China, which operates the Verbund site in Nanjing together with Sinopec. BASF’s stake comprises 50%.

Non-material joint ventures accounted for using the equity method particularly comprise:

• Wintershall Noordzee B.V., Rijswijk, Netherlands, which is operated jointly with Gazprom (BASF stake: 50%)
• N.E. Chemcat Corporation, Tokyo, Japan, which is operated jointly with Sumitomo Metal Mining Co. Ltd. (BASF stake: 50%)
• Heesung Catalysts Corporation, Seoul, South Korea, which is operated jointly with Heesung (BASF stake: 50 %)

Material associated companies accounted for using the equity method particularly comprise:

• Joint Stock Company Achim Trading, Moscow, Russia (BASF stake: 18.01%, economic share: 25.01%), which together with Gazprom, will market the output from blocks IV and V of the Achimov formation. The investment value in the amount of €768 million remained unchanged in comparison with the previous year and arose from the fair value measurement as a result of the asset swap with Gazprom on September 30, 2015. The company’s economic activities will commence in 2018 with the scheduled start of production in blocks IV and V. Therefore, there is no relevant financial information to report according to IFRS 12 in 2016
• GASCADE Gastransport GmbH, Kassel, Germany (BASF stake: 49.97%, voting rights: 50.02%)

Non-material accounted for using the equity method associated companies particularly comprise:

• OAO Severneftegazprom, Krasnoselkup, Russia (BASF stake: 25%, economic share: 35%)
• Nord Stream AG, Zug, Switzerland, was classified as an associated company even though BASF only has a 15.5% share, as it exercises significant influence over the company due to the fact that its approval is required for relevant board resolutions
• NEL Gastransport GmbH, Kassel, Germany (BASF stake: 49.97%, voting rights: 50.02%)
• Wintershall AG, Kassel, Germany, which operates Libyan exploration and production activities together with Gazprom Libyen Verwaltungs GmbH (BASF stake: 51%). Despite an investment of 51%, BASF does not exercise control according to IFRS 10, as contractual arrangements with the Libyan government strictly limit influence on variable returns after income taxes

Due to the corporate governance structure of NEL Gastransport GmbH and GASCADE Gastransport GmbH – both based in Kassel, Germany – in connection with requirements of Section 10 of the Energy Management Act (EnWG), BASF only exercises significant influence over both companies, despite voting rights of over 50%.