London (Platts)--26Feb2013/635 am EST/1135 GMT

Germany's Wintershall expects to increase its oil and gas output in 2013 mainly as a result of higher volumes from its operations in Russia, Norway and Libya, the company's parent BASF said Tuesday.

In its outlook for 2013, BASF said Wintershall would close a number of key deals, helping it raise output.

In 2012, Wintershall's production rose by 27% to 144 million barrels of oil equivalent (395,000 boe/d), mostly as a result of the return of production in Libya.

Wintershall operates output of some 100,000 b/d in Libya, which was shut in for most of 2011 because of the civil war in the North African country.

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It returned production toward normal levels over the course of 2012.

"This significant growth is primarily attributable to the continuous production of crude oil in Libya," BASF said in its 2012 earnings report.

Wintershall operates eight fields in onshore concessions 96 and 97 in Libya.

"After resuming production in October 2011, we were able to raise production in 2012 significantly faster than expected," it said.

"We achieved an average daily production rate of more than 80,000 boe/d," it said.

KEY 2013 DEALS

One of the key deals set to be finalized this year is Wintershall's acquisition of three producing fields in the Norwegian North Sea as part of an asset swap deal with Norway's Statoil.

Wintershall will increase its output in Norway by 3,000 boe/d to around 40,000 boe/d once it closes the acquisition of stakes in the producing Brage, Gjoa and Vega fields.

"This transaction, planned for the middle of 2013, will considerably strengthen our exploration and production activities [in Norway]," BASF said.

It is also set to close an asset swap with Russia's Gazprom.

"We will receive 25% plus one share in two additional blocks of the Achimov formation in the Urengoy field in West Siberia in 2013," it said.

"In this way, we continue to advance our joint production at the wellhead."

BASF also pointed to other strategic initiatives the company is looking at.

In June 2012, it signed an agreement in Abu Dhabi with state-owned ADNOC and Austria's OMV on the appraisal of the Shuweihat sour gas and condensate field.

ARGENTINA RISKS

Wintershall also holds shares in a total of 15 onshore and offshore fields in Argentina, but it warned Tuesday of the ongoing risks of operating in the South American country.

"The Argentinian government issued a decree toward the further regulation of the energy sector which will negatively affect our activities," it said.

"We are closely observing the political situation in Argentina that led to the partial nationalization of YPF and the intensification of foreign exchange restrictions in order to be able to react quickly and appropriately," it said.

BASF also said it was assuming an average oil price for 2013 of $110/b compared with an average of $112/b last year.

--Stuart Elliott, stuart_elliott@platts.com
--Edited by Maurice Geller, maurice_geller@platts.com

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