LUDWIGSHAFEN (dpa-AFX) - The chemical company BASF is pressing ahead with the separation of its oil and gas business Wintershall Dea. The British oil company Harbour Energy intends to take over Winterhall Dea, the company announced in Ludwigshafen on Thursday. A corresponding agreement has been signed between BASF, the other Wintershall owner LetterOne and Harbour Energy to merge the businesses. Wintershall Dea's Russian business is excluded from the transaction. BASF holds 72.7 percent of the oil and gas company, LetterOne 27.3 percent. BASF shares rose by just under 1.7 percent in the afternoon.

BASF and LetterOne are to receive a total cash payment of 2.15 billion US dollars and a share in the combined company. The cash portion for BASF is 1.56 billion US dollars. The Ludwigshafen-based company is to receive a 39.6 percent stake in the merged company. The transaction values Wintershall Dea at 11.2 billion US dollars (around 10.2 billion euros). The transaction is expected to be completed in the fourth quarter of 2024.

The agreement provides for the transfer of the production and development business as well as exploration rights in Norway, Argentina, Germany, Mexico, Algeria, Libya, Egypt and Denmark as well as licenses from Wintershall Dea for the capture and storage of carbon dioxide. The Russian-related business will be excluded, but BASF is pressing ahead with its legal separation. BASF and LetterOne will remain the owners of this company, for which substantial federal guarantees exist. The Russia-related business reportedly includes shares in the joint ventures in Russia, the shareholding in Wintershall AG in Libya, in Wintershall Noordzee BV in the Netherlands and the share in Nord Stream AG. In addition, Wintershall Dea is continuing preparations for the separate sale of its stake in Wiga Transport Beteiligungs-GmbH & Co KG, which is also not part of the transaction./nas/he