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BASF Oil & Gas Rainer Seele CEO Wintershall and President BASF Oil & Gas Division Roadshow Chicago & Toronto October 6-7, 2014

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Page 1: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas

Rainer Seele CEO Wintershall and President BASF Oil & Gas Division

Roadshow Chicago & Toronto October 6-7, 2014

Page 2: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 2

This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and BASF does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

Cautionary note regarding forward-looking statements

Page 3: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 3 3

1 | Overview & Strategy

2 | Exploration & Production

3 | Natural Gas Transportation

4 | Summary & Outlook

Horsehead pump in Germany

Page 4: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

2009

2013

2009-2013: – Oil & Gas: Solid profit

contributor to BASF Group – Oil & Gas accounted for

~30% of BASF Group capex

Oil & Gas will remain a significant contributor to BASF’s total EBITDA

Capex share of Oil & Gas business in BASF’s portfolio will decline

Key facts

Cumulative capex** 2009-2013 (billion €)

BASF Group w/o Oil & Gas

7.4 (76%)

BASF Group w/o Oil & Gas

14.5 (69%)

Oil & Gas 2.3 (24%)

Oil & Gas 6.4 (31%)

2009

2013 -

-

4

* Excluding non-deductible oil taxes; restated figures from 2012 onwards in accordance with changes in IFRS ** Including additions to property, plant, equipment resulting from acquisitions, capitalized exploration, restoration obligations

and IT investments; restated figures from 2012 onwards in accordance with changes in IFRS

Share of Oil & Gas in BASF portfolio

Overview & Strategy

Average EBITDA* 2009-2013 (billion € p.a.)

Page 5: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 5

Strong earnings contribution from Oil & Gas

* Positive impact from special income due to the deconsolidation of Gascade Gastransport GmbH and the disposal of a share in the Edvard Grieg oilfield (BASF Report 2013, pp. 86-87)

Overview & Strategy

480 601

857 789 951

712 923

1.064 1.201

1,780

835

0

500

1.000

1.500

2.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 1 HY2014

Net income Oil & Gas (million €)

Page 6: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Oil & Gas – Strong free cash flow contribution to BASF Group

6

0

500

1.000

1.500

2.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Cash flow Oil & Gas* (million €)

Operating cash flow Oil & Gas

* Wintershall cash flow ** Free cash flow: Operating cash flow less payments related to property, plant and equipment and intangible assets

Free cash flow** Oil & Gas

∼40% of operating cash flow to BASF Group (avg. 2004-2013)

Overview & Strategy

Page 7: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Oil & Gas value chain

Upstream Downstream

Exploration / Development / Production Transport Storage / Trading

Midstream Upstream

Focus on attractive E&P activities

Maintain gas transport business

Exit natural gas storage and trading business 1 2 3

7

Oil & Gas – Focus on upstream activities

Overview & Strategy

Page 8: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 8 8

1 | Overview & Strategy

2 | Exploration & Production

3 | Natural Gas Transportation

4 | Summary & Outlook

Platform in the Dutch sector of the North Sea

Page 9: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 9

Oil & Gas – Clear strategy for further profitable growth

”Growing at the source”

Focus Technology Partnerships BASF technology

Verbund Enhanced oil

recovery (EOR)

Strategic partnerships with regional resource holders

Long-term profitable growth

E&P Core regions Limited exploration

risk

Exploration & Production

Page 10: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 10

Exploration & Production

Clear regional focus: Four core regions and one development region

North Africa

Europe Russia

Middle East

South America

Core region

Development region

Operating company

Current activities

.

Page 11: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 11

Regional footprint 2013 (1)

Exploration & Production

Russia stands for roughly 50% of total production

In 2013, natural gas accounted for approx. 75% of total production

Production

Russia provides strong reserve base

Gas accounts for approx. 75% of total reserves

Reserves

Russia 53%

North Africa/ Middle East 9%

Europe 18%

South America 20%

132 million

boe

North Africa/ Middle East 9%

Europe 13%

South America 13%

Proved 1P reserves by region 2013

1.5 billion

boe Russia

65%

Production by region 2013

Page 12: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 12 ** Operating income represents only those revenues and expenses directly associated with Wintershall’s oil and gas production

Regional footprint 2013 (2)

Exploration & Production

Europe 36%

Operating income** E&P by region 2013

South America 14%

North Africa/ Middle East 1%

Sales E&P* by region 2013

North Africa/ Middle East 26%

Europe 38%

South America 9%

€3.3 billion

€1.2 billion Russia

49% Russia

27%

Strongest earnings contribution from Russia

* In accordance with US-GAAP (SFAS No. 69); see supplementary information on Oil & Gas segment (BASF Report 2013, pp. 216)

Page 13: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Continue to significantly invest in core and development regions

Capex* of ~€4 billion between 2014 and 2018, thereof – 70% Europe and Russia – 15% North Africa/Middle East – 15% South America

13

Production volumes (million boe)

0

50

100

150

200

2013 2015 target 2018 target

~190

132

Russia

South America

North Africa/Middle East Europe

Key facts

>160

* Without capex in non-consolidated participations

Oil & Gas – Excellent further growth opportunities

Exploration & Production

Page 14: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Reserve replacement costs ($/boe) Five year average 2009-2013

28.0

Wintershall Average peers Peers

Source: Herold, SEC, own calculation. Peer Group represents an average of the E&P industry

Production costs ($/boe) Five year average 2009-2013

15.0

Wintershall – Positioned competitively

Exploration & Production

14 14

82.6

38.133.7

33.5

29.324.2

22.1

21.620.7

19.8

17.812.7

7.7

0 20 40 60 80 100

19.2

18.418.2

18.1

18.118.0

15.6

15.014.7

13.3

13.17.4

5.7

0 5 10 15 20 25

Page 15: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 15

R/P ratio increased to 11 years

Total 1P reserves amounted to ~1.5 billion boe (2013)

Gas accounts for approx. 75% of total reserves

Strong contribution to reserve replenishment from assets in Norway and Russia

Key facts 1P Reserves* (million boe) R/P (years)

Oil Natural gas R/P

* According to SEC guidelines; Libya onshore 51%

Reserve Replacement Rate (RRR, in percent)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

102 50 52 48 389 116 89 89 131 100 280

** 2013 adjusted to new conversion factor from m3 gas to barrel of oil equivalent (5,600 scf = 1 boe instead of 6,000 scf = 1 boe)

0

2

4

6

8

10

12

0

200

400

600

800

1.000

1.200

1.400

1.600

2003 2006 2009 2012 **

Reserves and R/P

Exploration & Production

Page 16: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 16

Strong proved reserves growth

~40% of exploration and appraisal wells proved hydrocarbons in 2013

Robust discovered resource base built on

– Exploration success (e.g. Norway, Denmark)

– Acquisitions (Norway) – Improved recovery (e.g.

technology)

Discovered resource contributions from – Russia, Europe, North Africa,

South America

Key facts Reserves and Resources (billion boe*)

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2013

** Proved reserves based on SEC definitions

1.5 billion boe

2.1 billion boe

Discovered resources

Proved (1P) reserves**

* 1 barrel oil equivalent (boe) ≙ 5,600 standard cubic feet (scf)

Exploration & Production

Reserves and resources 2013

Page 17: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Strategic focus through active portfolio management

Exploration & Production

Profitable upstream

growth Own and jointly operated assets

Portfolio upgrading

Cash flow & capex optimization

Technology application

17 17

Page 18: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Norway 25% in Maria Norway

32.7% in Brage

Active portfolio management – Focus on promising projects

UK North Sea 14 licenses

15% in Luno II

Norway Add. 2.5% in Brage

Argentina 50% in Aguada Federal

Germany 15.79% of VNG

Acquisitions

Germany** 50% of WINGAS

WIEH, WIEE, Astora

Netherlands** 50% of Wintershall Noordzee

Exploration & Production

18

Norway 15% in Gjøa 30% in Vega

(closing dates) Own/joint-operated Divestitures

(closing dates) Norway Add. 24.5% in Vega 24% in Aasta

Hansteen*, Add. 5% in Gjøa,

19% in Asterix

Non-own operated

Russia** 25% in

Achimov IV/V

Norway Shares of

14 licences

BASF Oil & Gas, October 2014 * Including 13.2% in Polarled Pipeline ** Closing expected in autumn 2014; transaction financially retroactive to April 1, 2013

2011 2013 2012 2014 Expected closing

Page 19: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 19

Russia – Production ramp up Achimgaz

Exploration & Production

Production development Achimgaz Block IA* (%)

* 100% share. Russian Standard Conditions (RSC)

Full field development Pilot phase Plateau production

Wells in production

Plateau production by 2018: Up to 8 billion m3 p.a.*

Page 20: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

2011 2012 2014 2013

Nov. signing of legally binding

basic agreement

Dec. signing of final agreement

Oct. signing of framework

agreement

Dec. approval by EU

Commission

2015 2016

Planned production start area IV/V

Effective date: April 1

Implementation of the swap (e.g. developing new company structure)

Autumn expected closing

2017

20

Status of the asset swap with Gazprom – Timeline

20

Exploration & Production

BASF Oil & Gas, October 2014 Activities to be divested contributed in total ~€12 billion to sales and ~€500 million to EBITDA of BASF Group in 2013

Page 21: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 21

Exploration & Production

Wintershall expands its oil and gas production and reserves in Norway

Intensification of the cooperation with Statoil, the leading Norwegian oil and gas major, on exploration and development projects

Wintershall acquires shares in assets from Statoil containing reserves and resources (2P/2C) of ~170 million boe and a stake in the Polarled pipeline project*

Purchase price of US$1.25 billion plus up to US$50 million if Aasta Hansteen field development is executed according to current project plan

Effective date January 1, 2014

Closing expected by the end of 2014

Recent transaction with Statoil Transaction summary

* Pipeline project will provide route for produced gas from Aasta Hansteen field to onshore processing facilities

Page 22: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 22

Recent transaction with Statoil Strategic rationale of the transaction

Exploration & Production

* Subject to the approval by the authorities and partners

To strengthen Wintershall’s position in Norway by increasing participation in producing oil and gas fields

To participate jointly with Statoil in promising development project “Aasta Hansteen”

To get access to additional reserves and resources (2P/2C) of ~170 million boe and assets with material exploration perspectivity

To increase production of Wintershall Norge from currently around 40,000 boe/day to about 60,000 boe/day

To expand position as field operator in Norway and to gain experience with subsea operations by taking over operatorship in the Vega field*

To significantly increase Wintershall’s EBIT and future operating cash flow

Page 23: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Portfolio optimization in the northern North Sea

Exploration & Production

23

Brage 35.2% share Wintershall operator

since Oct. 1, 2013

Bergen

Assets In

Assets Out

Existing Assets

Astero 25% share Statoil*

Vega 54.5% share Wintershall to be

operator*

* Operator ** Remaining Wintershall share 15% *** Complete farm-out, closed in March 2014

Broom 29% share EnQuest*

Knarr 20% share BG*

Grosbeak 45% share Wintershall*

Skarfjell 35% share Wintershall*

Crathes/Scolty 50% share EnQuest*

Catcher 20% share Premier*

Cladhan 33.5% share Sterling*

To STATOIL**:

To MOL***:

To Wintershall:

Edvard Grieg 15% share (-15% farm-down) Lundin*

Luno II 15% share Lundin*

Stavanger

Norway

Great Britain

London

Aasta Hansteen 24% share Statoil*

Asterix 19% share Statoil*

Maria 50% share Wintershall*

Nyhamna Gjøa 20% share GDF Suez*

Polarled pipeline

Page 24: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 24

Supply Optimize transport logistics

via location swap Norwegian production to

secure European supply Participation in Norwegian

pipeline infrastructure to provide export route to the markets

Technology Joint technical

evaluation regarding possible application of Schizophyllan

Production Equity in three producing fields

Vega, Gjøa and Brage Increase in production to

~60,000 boepd Brage and Vega*: First two own

operated producing fields in Norway

Norway – Strengthening our position through strategic partnership with Statoil

Exploration & Production

* Subject to the approval by the authorities and partners

Page 25: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

Enhanced oil recovery – Schizophyllan BASF/Wintershall’s proprietary technology

Exploration & Production

25

Schizophyllan – biopolymer to enhance oil recovery

Produced by a fungus in a pilot scale plant at BASF

Increased incremental oil recovery of up to 10% points above that of waterflooding

Unique for oil fields with viscous oil and harsh reservoir conditions

First indication for incremental oil production shown in field test

Next steps Additional test planned in

further oil field

Key facts

Page 26: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014

South America – Reinvesting cash flow and applying leading-edge technologies

Exploration & Production

26

Province Mendoza Operatorship for exploration licenses in the province of Mendoza – CN-V* – Ranquil Norte*

Province Neuquén Investment in the heart of Vaca Muerta shale – Aguada Federal* – San Roque – Bandurria

Tierra del Fuego Further development in prospective Tierra del Fuego – Vega Pleyade – Carina Aries – Fenix

Argentina

Chile

Uruguay

Brazil

Paraguay

1

2

Exploration

Production

Tierra del Fuego

Neuquén

Mendoza

Austral Basin

Neuquén Basin

3

* Own-operated

Page 27: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 27

Argentina – Realize unconventional resource potential in Argentina

Key facts Aguada Federal

Farm-in agreement signed in 2014

50% participation interest acquired from Gas y Petroleo de Neuquén (GyP) incl. operatorship

100 km2 of the prospective Vaca Muerta shale formation

Next steps

Evaluation of the potential in a first appraisal phase (2014-2016)

– Investments of ~€80 million (100%)

– Drilling of up to six wells

Exploration & Production

Argentina

Aguada Federal

Exploration

Production

Page 28: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 28

Middle East – Shuwaihat project in Abu Dhabi: Start of drilling campaign

Exploration & Production

Key facts

Development of Shuwaihat gas/condensate field (containing H2S and CO2) – 200 km west of Abu Dhabi – Water depth: 0-15 meters – Targeted field depth: 3,400

meters

Wintershall: Operator in the appraisal phase

Resources: 50-500 million boe

Production start: ~2022

Next steps Drilling of up to three appraisal

wells and acquiring 3D-seismic over the field (since May 2014)

Page 29: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 29

North Africa – Update on Libya

Key facts Active in Libya since 1958 − Onshore C96/97 own

operated (Gazprom 49% share)

− Offshore Al Jurf C137 Onshore oil production

suspended since July 2013 due to the ongoing blockade of the export facilities Offshore production (Al Jurf)

not affected

1

2

Exploration & Production

29

Ras Lanuf

Zueitina

Required export pipelines

Production

Tunisia

Algeria

Niger Chad Sudan

Libya Egypt

C137 Al Jurf

C96/C97 Tripoli

Terminals

1

2

Page 30: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 30

Production growth from solid project pipeline (major projects)

2013 2015 2017 2019 2021

Norway

Length of development phase

Skarfjell

Achimgaz (FFD) Achimov Blocks IV / V*

Block 4N

Shuwaihat

F 17 Area

* Closing expected autumn 2014

Hibonite

Exploration & Production

Ravn

Fenix Unconventionals CMA1 extension Vega Pleyade

Maria Aasta Hansteen

Edvard Grieg Knarr

Page 31: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 31

Oil & Gas – Partnerships and cooperations as enablers

Strong partners in key regions Cooperations along the value chain

BASF internal R&D Verbund

Joint industry projects Joint research activities

Wintershall-driven R&D projects, e.g. EOR Well-established R&D cooperations with business units,

e.g. Oilfield Chemicals

Partnerships &

cooperations

Exploration & Production

Page 32: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas 2014 32 32

1 | Overview & Strategy

2 | Exploration & Production

3 | Natural Gas Transportation

4 | Summary & Outlook

Natural gas pipeline

Page 33: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 33

Natural gas transportation business generates stable earnings

Key facts Nord Stream (offshore)

– Wintershall share: 15.5% – Capacity: 55 billion m3/a – Both lines in operation – Total capex: €7.4 billion

South Stream (offshore) – Wintershall share: 15% – Planned capacity: 63 billion

m³/a via 4 pipelines – Total capex (offshore):

>€10 billion – Start-up: End of 2015

Natural Gas Transportation

Poland Belarus

Ukraine Hungary

Romania

Russia

Bulgaria

Serbia

Slovenia Caspian Sea Black Sea

Georgia

Germany

OPAL 36 bn. m³/a

NEL 20 bn. m³/a

Nord Stream 55 bn. m³/a

South Stream 63 bn. m³/a

Yuzhno Russkoye

Achimov fields

Gas pipelines in operation Nord Stream in operation South Stream offshore (planned) South Stream onshore (planned)

Production fields

1

2

Jamal 33 bn. m³/a

Transgas 95 bn. m³/a

* Start of production is planned not before 2016

Page 34: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 34

Pipeline network well connected to major European distribution hubs

Natural Gas Transportation

Ludwigshafen

Düsseldorf

Krefeld

Aachen

Köln

Kassel

Hameln

Emden

Greifswald

Hamburg Schwerin

Berlin

OPA

L Brandov

Frankfurt/O.

Erfurt

NEL

STEGAL

Kiel

Netherlands

France

Poland

Czech Republic

Nürnberg

GASCADE pipelines

Major european distribution hubs

Brüssel

Zeebrügge

Balgzand

Bunde

NetConnect

Gaspool JAMAL

Burghausen

Prag

Bacton

Belgium

NBP

TTF

ZBH

Key facts GASCADE

– Wintershall share: 50% – Length: 2,400 km – In operation since 1992

OPAL – Wintershall share: 40% – Capacity: 36 billion m³/a – Length: 472 km – In operation since 2011

NEL – Wintershall share: 25.6% – Capacity: 20 billion m³/a – Length: 441 km – In operation since 2012/2013

Page 35: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas 2014 35 35

1 | Overview & Strategy

2 | Exploration & Production

3 | Natural Gas Transportation

4 | Summary & Outlook

Drilling rig in Western Siberia (Achimgaz)

Page 36: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas, October 2014 36

Oil & Gas – Outlook 2014

2013 2014

Financial performance

Sales to 3rd parties: EBIT before special items: Net income:

€14.776 billion €1.969 billion €1.780 billion

Sales expected to be considerably below 2013 due the asset swap with Gazprom. Slight increase in EBIT before special items due to the first all-year inclusion of the acquired activities from Statoil** and the expansion of the Achimgaz production.

Production volumes

Total production: 132 mmboe Production expected on similar level despite the suspension of the onshore production in Libya.

Sales volumes Natural gas sales: 52 billion m³ Divestment of natural gas trading and storage activities planned for autumn 2014.

Investments/ Expenditures

Investments* 2013: thereof E&P: thereof Natural Gas Trading:

~€2.954 billion ~€2.834 billion ~€0.120 billion

Investments*** 2014-2018: ~€4.0 billion (Predominantly in E&P)

Macroeconomic assumptions

Average oil price (brent): Average exchange rate:

$109 per barrel $1.33 per €

Forecast 2014: $110 per barrel $1.35 per €

* Incl. tangible assets from acquisitions, activated exploration expenditures, without capex in non-consolidated participations

*** Without tangible assets from acquisitions and activated exploration expenditure, without capex in non-consolidated participations

Summary & Outlook

** Former Statoil transaction with closing in 2013

Page 37: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

BASF Oil & Gas 2014 37

BASF’s Oil & Gas division – Summary and roadmap 2018

New ambitious growth target for 2018

Strong portfolio with access to high potential acreage

Solid project pipeline / focus on execution & operational excellence

Strategy with focus on regions of expertise and limited exploration risk

Powerful partnerships in key regions

Exit of natural gas storage and trading business

BASF Oil & Gas, October 2014

Page 38: BASF Oil & Gas Roadshow Chicago & Toronto€¦ · 2015 target. 2018 target ~ 190. 132. Russia. South America . North Africa/Middle East. Europe Key facts > 160 Without capex in non-consolidated

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