Oil & Gas – Strategic PositioningDr. John FeldmannMember of the Board of Executive Directors

1 | Oil & Gas in the BASF portfolio

2 | Strategic partnership with Gazprom

3 | Outlook

2

3

ChemicalActivities

Agriculture &Nutrition

Oil & Gas

*Including other activities 2005: 2.0 billion Euro (5%)

BASF’s balanced portfolio

2005 total sales*: 42.7 billion Euro

PerformanceProducts

Plastics 18%

Chemicals

4

Oil & Gas

BASF benefits from Oil & Gas business

BASF

Long term security of gas supplyin Europe

Significant cash flow

Hydrocarbonhedge

Sustainable profitability

5

0

1000

2000

3000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Million Euro EBIT* Gas Trading

* Before special items; 2004 figures based on IFRS

Earnings from Oil & Gas

EBIT* E&PEBIT* Total

Q1-Q3

6

190287

3813931 36

59

243

630

329259410

200

0

200

400

600

800

1000

2001 2002** 2003 2004 2005 2006E

* Investment into property, plant, and equipment and intangible assets IFRS accounting since 2005. 2004 figures adjusted to IFRSs.** 2002: Including Clyde as published in Wintershall report 2002

Investments for the future 2001 – 2006

Million Euro* E&PGas Acquisition Clyde

229

920

323388

624 610

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BASF

Oil & Gas business benefitsfrom BASF Group

Wintershall

Chemical downstream opportunities

Strongfinancial

background

BASF is a reliable

partner

BASF is the largest gas consumerin Europe

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Wintershall is a midsize E&P-company with

• Focus on world class operational excellence

• Focus on projects which require specific technological experience

• Focus on strategic partnerships

• Focus on profitable growth

Exploration and production –Success through focusing

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Wintershall –Global E&P activities

OPCO

Core region

Production and / or Exploration

RussiaGermany

Netherlands

Argentina

Libya

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• WINGAS – Competition begins in the German gas market

• Excellence in gas distribution, trading, transport and storage

• Linked to major resources to supply the European gas market

• Well structured pipeline system in Germany

• Leading position in gas storage

• Strategic partnership with Gazprom

Gas trading –Well positioned in a liberalized market

1 | Oil & Gas in the BASF portfolio

2 | Strategic partnership with Gazprom

3 | Outlook

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Partnership Gazprom – BASF

1990: Basic Agreement to cooperate, Foundation of WIEH and signature of first major Russian gas supply contract

1993: Gazprom and BASF form WINGAS –Competition starts in the German gas market

2003: Gazprom and BASF develop the Gas for Europe – Concept :– WINGAS preferred trader for Russian gas in Europe– Wintershall and Gazprom cooperate in E&P-projects

2003: Foundation of ZAO Achimgaz

2005: Agreement on Nord Stream partnership and on first gas supplies through Nord Stream (2010 – 2035; 9 bn m³/a)

2006: Participation in Yuzhno Russkoye Field

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“Gas for Europe” strategyIncreasing demand for imported natural gas in Europe

NordStre

am

EU 25in billion m³

ImportsLocal production

2005 2015

600-700

530

43% 25%

75%57%

(1) Interconnector(2) Europipe I(3) Europipe II(4) Jamal

(5) Transgas(6) BBL(7) Nord Stream

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WINGAS activities in Europe

WINGAS growth:• Sales 1995:

3.8 billion m³• Sales 2005:

21 billion m³• Sales 2006E:

24 billion m³• CAGR 2000 – 2006:

13 %Strategic target• Using market

liberalization• Expanding in Europe• Significant volume

growth

D

F

UKDK

CZAU

RO*

BUL*

B

* WIEE

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Nord Stream –Northern European Gas Pipeline

Northern European Gas Pipeline (Nord Stream)

• Major infrastructure project to supply Western Europe with Russian gas (55 bn m³/ 2 pipelines)

• BASF with up to 24.5% share closing the link between production and selling of natural gas

• Gazprom holding 51%, BASF 24.5%, E.ON 24.5% in JV (entry of Gasunie under negotiation)

• Projected start-up 2010

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BASF and Gazprom –E&P – cooperations

Achimgaz Yuzhno Russkoye

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Achimgaz –Pilot drillings confirm expectations

Achimgaz (50% BASF, 50% Gazprom)

• First production joint venture with Gazprom

• One of the largest German investments in Russia

• Securing production volumes

• Joint venture started drilling production wells

• First results confirm expectations

• Risk minimizing through two phased approach

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Yuzhno Russkoye deal – Deepening our long-term partnership with Gazprom

• Expanding partnership with Gazprom through joint development of Yuzhno Russkoye gas field

• BASF with 35% less one share significantly improves its reserve basis and long term production volumes

• Gazprom extends its WINGAS participation (50% less one share in Germany, 50/50 in Europe)

• Gazprom will participate with 49% share in a Wintershall subsidiary for onshore E&P in Libya

• Gazprom and BASF both increase their earnings potentials

19

0

10

20

30

40

50

60

2005 2010 2015

Give C96/97 Libya• 49% Gazprom

participation in holding company

• C96/97 BASF's main oil producing assets

Get Yuzhno Russkoye• 2008: Field start-up• 2011: Plateau production• BASF’s long term most

significant gas assets

Start-up at Achimgaz• 2007: Phase I production• 2008/9: Start up Phase II • 2015: Plateau production

Yuzhno Russkoye –A crucial building block

ProductionMMBOE

Yuzhno Russkoye(Wintershall share)

C96/97 Libya(Wintershall share)

Achimgaz*(Wintershall share )

* Not part of Yuzhno Russkoye deal

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• Earnings dilution one time issue in 2007

• Significantly positive net effect of asset swap after 2008 with upward trend

• Further upside potential through:

- earlier YuzhnoRusskoye start-up

- faster ramp-up of production

- gas trading partnership in Europe

Euro/Share*

* Based on number of BASF shares on 30.09.2006 (501,550,000) BASF EPS 2005 5.73 Euro; EPS Q1-3 2006 4.91 Euro

0.14

-0.22

[balanced]

0.22

-0,3

-0,2

-0,1

0,0

0,1

0,2

0,3

2007 2008 2009 2010

trend

Estimated net effect of swap deal on BASF earnings per share

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100%

E & P partnerships with Gazprom

BASF Group

Wintershall Holding

* As of closing** Economic share

50%50% 50%*

Yuzhno Russkoye Achimgaz

(51% / 49%)* 35%**

Libya onshore

Wintershall Achimgaz SNGP

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50% 50% 35% (50+1%/ 50-1%)*65%

100% 50% 50%100%

Strategic partnership with Gazprom

BASF Group

Wintershall Holding

*As of closing

1 | Oil & Gas in the BASF portfolio

2 | Strategic partnership with Gazprom

3 | Outlook

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Wintershall major investments

Major projectsin billion Euro

Total* BASF share**

Investment period

BASF Investment 2006 – 2010

BASF Investment 2011 – 2015

0.20.1

Libya 0.5 0.3 ongoing 0.3 tbd

Netherlands 1.5 0.4 ongoing 0.3 0.1

Storages Haidach & Saltfleetby

0.6 0.2 2005 – 2011 0.2 0.0

0.8

0.30.5

1.9

E&P

Gas

2005 – 20462005 – 2046

2006 – 2017

Achimgaz 1.1 0.6Yuzhno Russkoye 1.9 0.7

Nord Stream offshore*** & Germany onshorecontinuation

9.0 2.8

* BASF current estimate** Achimgaz 50%, WINGAS 50%; Yusshno Russkoye 35%, Nord Stream offshore 24.5%;

entities with less than 50% BASF ownership will be equity consolidated*** Published investment by Nord Stream AG is at least 5 billion Euro.

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Oil & Gas key strategic targets 2010

• Wintershall is positioned to be a net cash contributor to the BASF Group

• Strategic partnerships with Gazprom and others will be further developed

• E&P :- Midsize leading E&P – company- Production ~140 million boe/a- EPS range 1.2 – 1.8 Euro*

• Gas trading :- Sales volume ~40 billion m³/a- EPS range: 0.35 – 0.40 Euro**

* Based on number of BASF shares on 30.09.2006 (501,550,000); Brent range of 35 – 55 USD, USD/Euro 1.25

** Based on number of BASF shares on 30.09.2006 (501,550,000); subject to contract prolongation, no major changes in market framework, minor Nord Stream volumes only

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