25 – Other Financial Obligations

The figures listed below are stated at nominal value:

Other financial obligations (Million €)

 

December 31,
2020

December 31,
2019

Bills of exchange

2

6

Guarantees

347

447

Warranties

79

65

Collateral granted on behalf of third-party liabilities

1

Initiated investment projects

3,921

4,331

of which purchase commitments

1,052

1,093

for the purchase of intangible assets

15

25

Payment and loan commitments and other financial obligations

75

80

BASF SE provides a guarantee to Abu Dhabi National Oil Corporation covering all obligations of Wintershall Dea Middle East GmbH related to the Ghasha concession in the United Arab Emirates. Furthermore, BASF SE assumed guarantees to the Danish Energy Agency covering all obligations of Wintershall Dea International GmbH and Wintershall Noordzee B.V. related to licenses for exploration and production of hydrocarbons in the Danish concession area. In addition, BASF SE provides guarantees for restoration obligations of Wintershall Dea Norge AS related to various oil and gas facilities acquired from Equinor. The guarantees do not stipulate a maximum amount. The risk of a claim being exercised against the guarantees is classified as low.

The decline in liabilities from initiated investment projects is mainly attributable to the completion of various large-scale projects in 2020.

Obligations arising from purchase contracts

Obligations arising from purchase contracts resulted primarily from long-term purchase obligations for raw materials. Firm purchase obligations as of December 31, 2020, were as follows:

Obligations arising from purchase contracts (Million €)

2021

8,003

2022

5,347

2023

3,419

2024

1,317

2025

1,238

2026 and maturities beyond this year

4,165

Total

23,489