German chemicals giant BASF said Friday it was considering merging its oil and gas unit with the DEA energy firm owned by Russia's billionaire entrepreneur Mikhail Fridman.

"BASF is in discussions regarding a potential merger of BASF group's oil and gas activities with LetterOne's oil and gas activities bundled in the DEA group," the German company said in a statement.

"The outcome of the discussions is open and there is no assurance that any transaction will be consummated."

LetterOne is the name of Fridman's Luxembourg-based investment group.