With the merger of Wintershall Holding GmbH and DEA Deutsche Erdoel AG, two successful companies with a long tradition have formed Europe’s leading independent natural gas and oil company: Wintershall Dea.
The company with German roots and headquarters in Kassel and Hamburg explores for and produces gas and oil in 13 countries worldwide in an efficient and responsible manner. With activities in Europe, Russia, Latin America and the MENA region (Middle East and North Africa), Wintershall Dea has a global upstream portfolio. Furthermore, with its participation in natural gas transport, it is also active in the midstream business.
Wintershall Dea stands for over 125 years of experience as an operator and project partner along the entire E&P value chain. The company employs around 2,800 people worldwide from over 60 nations.
Following the approval of all relevant authorities, BASF and LetterOne successfully completed the merger of Wintershall and DEA on May 1, 2019. BASF holds 67% and LetterOne 33% of Wintershall Dea’s ordinary shares, reflecting the value of the respective exploration and production businesses of Wintershall and DEA. To reflect the value of Wintershall’s gas transportation business, BASF received additional preference shares. This resulted in BASF having a total initial shareholding in Wintershall Dea of 72.7%. No later than 36 months after closing but definitely before an Initial Public Offering (IPO), these preference shares will be converted into ordinary shares of Wintershall Dea. BASF and LetterOne envisage to list Wintershall Dea via an IPO in a more favorable market environment.
|Revenues and other income||5,930||6,738|
|Adjusted net income2||879||1,055|
1 EBITDAX is a non-GAAP financial measure and is used for internal management control purposes within the Wintershall Dea group. It is a key indicator obtained from the income statement, derived from the profit/loss before taxes adjusted for interest income and expense, depreciation and amortization and impairments, exploration income and expenses, acquisition, disposal and restructuring expenses, realized and unrealized foreign exchange gains and losses, gains or losses over book value from disposal of fixed assets.
2 Adjusted net income is derived from net income and adjusted for special items like impairments, integration and restructuring cost and one-off effects.
In 2019, Wintershall Dea had revenues and other income of €5.9 billion, income from operations before depreciation, amortization and exploration (EBITDAX) of €2.8 billion and adjusted net income of €879 million (on a like-for-like basis). Total production of Wintershall Dea (excluding Libya onshore) was 617,000 barrels of oil equivalent per day (BOEPD). As of December 31, 2019, proven reserves stood at 3 billion barrels of oil equivalent (BOE), corresponding to a reserve to production ratio of 13 years. The integration of the former Wintershall and Dea businesses is proceeding as planned and Wintershall Dea expects to achieve annual synergies of more than €200 million by 2022.
Wintershall Dea’s roots lie in Germany. The company has been active in the exploration and production business for more than eight decades. It predominantly produces from the Mittelplate and Emlichheim oil fields and the Völkersen gas field, where more than 85% of the combined hydrocarbon production in Germany comes from. Production in Germany requires particular expertise, which the company can apply in its operations globally. The company’s operations in Mittelplate are considered exemplary and regarded internationally as a benchmark for safe oil production in an environmentally sensitive area.
Norway is Europe’s most important supplier of natural gas and oil besides Russia. Wintershall Dea has operated on the Norwegian continental shelf for more than 45 years and is now one of the leading oil and gas companies there. Wintershall Dea is operator of many of its approximately 100 concessions, such as for the producing fields Brage and Vega.
Wintershall Dea has been active in the Dutch North Sea for more than 50 years. As a shareholder of Wintershall Noordzee (50% Wintershall Dea, 50% Gazprom), the company is currently one of the major producers of natural gas in the region.
The southern North Sea still plays a major role in Europe’s energy supply, as repeatedly demonstrated by new projects. For example, the company commenced production as a shareholder of Wintershall Noordzee (50% Wintershall Dea, 50% Gazprom) at Ravn, its first self-operated oil field, in 2017. It has a stake in three other oil fields in Denmark.
Wintershall Dea holds six concessions off the British coast as a shareholder of the operator Wintershall Noordzee (50% Wintershall Dea, 50% Gazprom). The most important project at present is the company’s first self-operated natural gas production in the British North Sea: Gas is being produced successfully from Wingate, a field discovered in 2008, using an unmanned platform.
Russia is one of the world’s most resource-rich countries. It has the sixth-largest oil reserves and around one-fifth of all known natural gas reserves. The country is the most important supplier of gas to the E.U. Wintershall Dea is involved with Russian partners in exploring and producing hydrocarbons in Western Siberia and southern Russia. The joint projects have supplied energy to Europe for over 25 years. Wintershall Dea is involved in four onshore projects in Russia: The Urengoy field – one of the world’s largest gas and condensate reserves – is located some 3,500 kilometers northeast of Moscow, near the Western Siberian city of Novy Urengoy. There the Achimgaz joint project produces natural gas from the technically complex Achimov Formation. Another joint venture, Achim Development, is developing blocks 4A and 5A. A little further south and also in the Yamalo-Nenets Autonomous Okrug is the Yuzhno-Russkoye field, in which Wintershall Dea has a stake via the Severneftegazprom joint venture. The Wolgodeminoil joint venture produces crude oil in southern Russia near Volgograd, an important transport hub and industrial center.
Wintershall Dea has been active in Argentina for more than 40 years. Today, the company has a stake in a total of 20 onshore and offshore fields. It acts as operator for three of them. Argentina not only has large amounts of conventional resources but is also one of the most important growth regions in the area of unconventional resources.
Mexico has some of the world’s largest proven reserves. After entering the national oil and gas market in 2017, Wintershall Dea established a major position there in just one year. This also includes being operator of the producing Ogarrio oil field. The company also holds shares in promising exploration licenses.
Brazil is one of the most attractive growth regions for the oil and gas industry. The coastal region in particular, with its undeveloped offshore basins, is considered especially promising. Wintershall Dea aims to set up a resource base there in the next few years. In 2018 and 2019, the company secured a number of promising licenses. Initial exploration activities in the assigned blocks started in 2019.
Wintershall Dea has been active in Egypt for more than 40 years. Several oil fields in the Gulf of Suez have been developed – and production is now being stepped up again. The same holds true for gas production in the onshore Nile Delta, where Wintershall Dea was awarded a new exploration license in 2019. In both areas, the company is the operator. It is also a partner in the major West Nile Delta project, where four out of five fields have already started production.
Wintershall Dea has been involved in the exploration and production of crude oil in Libya since 1958. The company operates eight onshore fields and has a stake in the offshore field Al-Jurf. Since 2011, onshore activities have been affected by the difficult political and security situation in the country. Wintershall Dea is monitoring the situation very closely. In December 2019, its affiliate Wintershall Aktiengesellschaft (WIAG) and Libya’s National Oil Corporation (NOC) signed two Exploration and Production Sharing Agreements. In 2020, the operations of both areas are planned to be handed over to Sarir Oil Operations, a joint venture between NOC (51%) and WIAG (49%).
The oil and gas sector is the backbone of Algeria’s economy. Wintershall Dea is collaborating in a geologically and logistically challenging natural gas project in the Sahara: the Reggane Nord project, in which the company has a stake.
The United Arab Emirates have the seventh-largest oil reserves in the world. Wintershall Dea has operated there since 2010. In 2018, the national oil company ADNOC awarded it a 10% stake in the Ghasha concession. Ghasha is one of the most promising gas and condensate projects that has yet to be developed in the Emirates. The Ghasha concession offshore Abu Dhabi consists of several major gas and condensate development projects in different phases over the 40-year concession period.