1

Oil & Gas Toward

new

levels

of performance

John Feldmann

22

1 | Oil & Gas in the BASF portfolio

2 | E & P

3 | Gas trading

4 | Strategic partnership with Gazprom

5 | Outlook

3

Chemical activities

Agriculture & Nutrition

*Including other activities 2006: 2.5 billion Euro (5%)

Oil & Gas

Oil & Gas –

one of BASF’s core activities

2006 total sales*: 52.6 billion Euro

PerformanceProducts

Plastics20%

Chemicals

4

Oil & Gas

Oil & Gas business provides significant advantages for BASF

BASF

Long term security of gas supplyin Europe

Significant cash flow

Hydrocarbonhedge

Sustainable profitability

5

Exploration and Production Gas Trading

Operating company

Core region

Oil & Gas –

core activities

5

D

F

UKDK

CZ

Current gas trading activities

RO

BUL

AU

B

6

Production

• 4% CAGR 2001-2006

• Gas share increased to ~40%

Gas trading

• 11% CAGR 2001-2006

• Base load sales to BASF at 19%

Oil & Gas –

production and gas trading

0

10

20

30

40

2001 2002 2003 2004 2005 2006

Gas trading

in billion m³

2124

29 3033 35

Wholesale

WINGAS

Production

in million boe

0

40

80

120

2001 2002 2003 2004 2005 2006

93 94105 108 112 111

Oil

Gas

7

Sales• 19% CAGR 2001-2006• Boost in 2005 and 2006

from - higher oil and gas prices

- higher gas production in E&P

- increased sales in gas trading

EBIT• 20% CAGR 2001-2006• Significant increase of

EBIT in E&P predominantly due to higher volumes and further increase of oil and gas prices in 2005 and 2006

Oil & Gas –

sales and EBIT

E&P

Gas trading

E&P

Gas trading

Sales

in billion Euro

EBIT

in billion Euro

0

3

6

9

12

2001 2002 2003 2004 2005 2006

E&P

Gas4.5 4.2 4.8 5.3

7.7

10.7

0

1

2

3

4

2001 2002 2003 2004 2005 2006

1.3 1.2 1.4 1.62.4

3.3

88

1 | Oil & Gas in the BASF portfolio

2 | E & P

3 | Gas trading

4 | Strategic partnership with Gazprom

5 | Outlook

9

Wintershall is a midsize E&P-company with focus on

• 5 core regions

• World class operational excellence

• Projects which require specific technological experience

• Strategic partnerships

• Profitable growth

Exploration and ProductionSuccess through focus

10

Operating company

Core region

Production and/or Exploration

Caspian:- Exploration in Russian and Turkmen sectors

Russia:- Development of Siberian gas - Acquisition of new projects

Northern Africa:

- Established oil production in Libya - Additional growth opportunities

Europe:

- Traditional strength in oil and gas - Base for technological expertise

South America:- Established production in Argentina

and further exploration

Exploration and ProductionCore region strategy

11

Production growth [% p.a.]

Production costs [USD/boe] Return on capital [% p.a.]**

Finding & Development costs [USD/boe] F&D/Production [USD/boe]

Reserve replacement [%] Reserve/Production ratio [yrs.]

Source: Herold, SEC

* Peer Group (upstream only): ExxonMobil, Shell, BP, Total, Amerada Hess, Apache, Marathon, Occidental, Talisman, Woodside** (Income before tax + interest on borrowed capital) / average total assets

Exploration and ProductionWintershall

competitive position

Five year average 2002 -

2006 Wintershall Peers average* Range peers

13 5325 53

-5.6 10.00.7 4.5

3.0 9.27.23.9

6.6 19.612.06.6

16.010.8

13278

11.68.7

4.5 4.5

78 230

8.1 16.2

12

• Continue production growth into next decade- Short term focus on Russian gas projects- 2015 overall production target:

150+ million boe/a

• Ensure adequate reserve base in (re)balanced asset portfolio

- Continue near field exploration, enhance greenfield activities

- Acquire additional brownfield development opportunities (oil)

• Keep geographic focus, core region concept

• Innovation: Evolve from smart follower to one of the leaders in selected technologies

Exploration and ProductionWay forward

1313

1 | Oil & Gas in the BASF portfolio

2 | E & P

3 | Gas trading

4 | Strategic partnership with Gazprom

5 | Outlook

14

Gas trading –

well positioned in a liberalizing European market

• WINGAS # 3 in German market, expanding into Europe

• Excellence in gas distribution, trading, transport and storage

• Strategic partnership with Gazprom through successful joint ventures (WINGAS, WIEH, WIEE)*

• Large long term supply contracts (until 2030)• Modern, expanding own infrastructure

- Well structured pipeline system in Germany

- Largest gas storage facility in Europe (Rehden)

• Direct connections to European gas hubs

* WINGAS: 65% BASF / 35% Gazprom (50% plus/minus one share after finalization of asset deal); WIEH and WIEE 50/50 each.

15

Gas trading –

WINGAS activities in Europe

WINGAS growth:• Sales 1995:

3.8 billion m³• Sales 2006:

23 billion m³• CAGR 2001-2006:

14%

Strategic target• “Gas for Europe”• Exploiting the potential

of market liberalization• Significant volume

growth

D

F

UKDK

CZAU

RO

BUL

B

WINGASWIEE (Central Europe Gas trading activities)

16

Gas sales growth [% p.a.]

Sales per employee [million €/employee] EBIT per employee [million €/employee]

Return on capital [% p.a.]** Return on sales [% p.a.]

Gas tradingWINGAS competitive position

Five year average 2002 –

2006

-5.2 14.9

10.6 13.5

7.5 8.5

1.6 14.9

3.3 14.7

0.19 1.21

0.4 14.7

0.05 1.21

7.0 13.5

5.0 11.2

WINGAS Peers average* Range peers

Source: Annual Reports, own calculation

* Peer Group: E.on Ruhrgas, Verbundnetz Gas AG, Gaz de France, Centrica** (Income before tax + interest on borrowed capital) / average total assets

17

NordStre

am

EU 27in billion m³

Imports

Local production

2005 2015

600-700

550

44% 25%

75%56%

(1)

Interconnector(2)

Europipe

I(3)

Europipe

II(4)

Jamal

(5)

Transgas(6)

BBL(7)

Nord

Stream

WINGAS pipeline system

Gas trading Central pipeline system in Europe

18

Gas trading –

supply contracts key to sustainable growth

short-/mid-term (1-4y)

long-term West (>4y) long-term Russian supplies (2035)„Nord Stream“

long-term Russian supplies (2030)

WINGAS sales

Supply

• Portfolio of long-term supply contracts of > 700 billion m³ in total*

• Strong foundation of business

• Potential to optimize through short-/mid-term supplies in the future

Sales

• Until 2010 approx. 80% of sales volumes already contracted

* Over contract period

WINGAS supply

portfolioin billion m³ p.a.

0

40

1995 2000 2005 2010 2015

20

30

10

19

Gas trading –

way forward

• Continue profitable growth above market average in Germany and Europe

• 2010 Gas trading sales target: 40 billion m³

• Reap benefits of market liberalization, minimize cost of regulation

• Capture logistical optimization through swap potential

• Implement Haidach and Saltfleetby to become # 3 storage company in Europe

• Target earliest Nord Stream implementation

• LNG supply only as an option to additional deliveries

20

1 | Oil & Gas in the BASF portfolio

2 | E & P

3 | Gas trading

4 | Strategic partnership with Gazprom

5 | Outlook

21

Achimgaz Pilot drillings confirm expectations

Achimgaz

(50% BASF, 50% Gazprom)

• First production joint venture with Gazprom

• One of the largest German investments in Russia: Total investment 1.1 billion Euro (BASF share 0.6 billion Euro)

• Securing production volumes

• Wintershall provides technical expertise for development of complex reservoirs

• Joint venture started drilling production wells

• Drilling results confirm expectations

• Risk minimizing through two phased approach

• Reserve booking under discussion

22

Asset swap with Gazprom Deepening our long-term partnership

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

• BASF with 25% less one share and 10% non voting shares significantly improves its reserve basis and long term production volumes

• Gazprom extends its WINGAS participation (50% less one share)

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

• Gazprom and BASF both increase their earnings potentials

• Total investment of 1.9 billion Euro (BASF share 0.7 billion Euro)

23

Nord

Stream Northern European Gas Pipeline

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

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

• Subsea pipeline from Vyborg, Russia through the Baltic Sea to the coast of Germany near Greifswald

• Pipeline length 1200 km (one of the longest subsea pipelines in the world)

• Projected start-up late 2010

• The total investment for the offshore pipeline* and Germany onshore continuation is estimated to be at least 9 billion Euro (BASF share 2.8 billion Euro)

* Published investment by Nord Stream AG for the offshore part is at least 5 billion Euro

24

1 | Oil & Gas in the BASF portfolio

2 | E & P

3 | Gas trading

4 | Strategic partnership with Gazprom

5 | Outlook

25

814937

0,000

1,000

2,000

3,000

2000 2006 20100,000

1,000

2,000

3,000

Oil & Gas resources and reserves

Achimgaz

Base

YR/Libya Swap

Resources* (3P) ** (in million boe)

SEC Reserves *** (in million boe)

R/P ratio ≥ 10 from 2007

* As of closing of Yuzhno Russkoye deal

** Sum of proven, probable and possible reserves

*** Proven reserves according to SEC guidelines

26

Oil & Gas Pursuing ambitious growth targets

2006 2010

Crude oil and natural gas production of 111 million barrel oil equivalent

Increasing crude oil and naturalgas production to 140 million barrel oil equivalent

Natural gas sales of 35 billion cubic meters

Increasing natural gas sales to 40 billion cubic meters

Investments 2001-2006: 3.0 billion Euro

Major investments 2007-2010:3.3 billion Euro

EPS from E&P: 1.4 Euro*

EPS from E&P:1.2 – 1.8 Euro**

EPS from gas trading:0.47 Euro*

EPS from gas trading:0.35 – 0.40 Euro***

** Based on number of BASF shares on 31.03.2007 (494,705,000); Brent range of 35 – 55 USD, USD/Euro 1.25; including Yuzhno Russkoye 35%, Libya onshore C96/C97 51%

*** Based on number of BASF shares on 31.03.2007 (494,705,000); subject to contract prolongation, no major changes in market framework, minor Nord Stream volumes only; WINGAS: 50% BASF / 50% Gazprom (plus/minus one share)

* Based on number of BASF shares on 31.12.2006 (501,090,000); Brent average 2006 of 65.14 USD/bbl, USD/Euro 1.26; Gas trading: WINGAS: 65% BASF / 35% Gazprom

27

Wintershall contributes substantially to BASF Group results …

• … and will continue to do so in a challenging business environment …

• … through tailored organic growth strategies in both up- and midstream …

• … in growth markets focused on Europe’s increasing gas import requirements.

Wintershall

–

fit for the future

28

Disclaimer

This presentation contains forward-looking statements under the US Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections of BASF management and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove to be accurate.

Many factors could cause the actual results, performance or achievements of BASF to be materially different from those that may be expressed or implied by such statements. Such factors include those discussed in BASF’s Form 20-F filed with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking statements contained in this presentation.

29

30

• 3P reserves Sum of proven, probable and possible reserves• BBL Balgzand Bacton Line• E&P Exploration and Production• F&D costs Finding and Development costs• JAGAL Jamal-Gas-Anbindungs-Leitung (Yamal gas link)• MIDAL Mitte-Deutschland-Anbindungs-Leitung (Central Germany gas link)• NEGP North European Gas Pipeline, former project name of Nord Stream• NEL Norddeutsche-Erdgas-Leitung (Northern Germany gas link, planned)• OPAL Ostsee-Pipeline-Anbindungs-Leitung (Nord Stream gas link, planned)• OPEX Operating Expenditures• R/P Proven reserves divided by annual production (years)• SEC Securities and Exchange Commission• SEL Süddeutsche-Erdgas-Leitung (Southern Germany gas link, planned)• STEGAL Sachsen-Thüringen-Erd-Gas-Anbindungs-Leitung

(Saxony-Thuringia natural gas pipeline)• WEDAL West-Deutschland-Anbindungs-Leitung (Western German gas link)• WIEE Wintershall Erdgas Handelshaus Zug AG• WIEH Wintershall Erdgas Handelshaus GmbH & Co. KG

Glossary and abbreviations

31

• bbl barrel• bcm billion cubic meter• boe barrel oil equivalent• bscf billion standard cubic feet• Btu British thermal unit• kWh kilo Watt hours• toe tons oil equivalent

• 1 bbl = 159 liter• 1 bscf = about 0.17 million boe• 1 m³ = 35.3 cf (1 m³0°C = 37.3 scf60°F )• 1 toe = about 7.6 boe• 1 therm = 29.3 kWh• 1 Btu = 100,000 therms• 1 mBtu = about 1.07 scf

Abbreviations and conversions