Non-Integral Shareholding in Wintershall Dea
With the merger of Wintershall Holding GmbH and DEA Deutsche Erdoel AG in May 2019, two successful companies with a long tradition 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 Northern 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 120 years of experience as an operator and project partner along the entire E&P value chain. The company employs around 2,500 people worldwide from almost 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 initially held 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. On May 1, 2022, these preference shares were converted into ordinary shares of Wintershall Dea, resulting in BASF having a total shareholding in Wintershall Dea of 72.7%.
|Revenues and other income||8,188||3,892|
|Adjusted net income2||950||195|
1 EBITDAX is defined as revenues and other income, less production and operating expenses, less production and similar taxes, less general and administrative expenses and less cost of sales midstream, adjusted for special items.
2 Adjusted net income is derived from EBITDAX less depreciation and amortization, less exploration expenses, plus financial income, less financial expenses and less income taxes, adjusted for special items and tax effects on adjusted special items and disregarded items (e.g., impairments on assets).
In 2021, Wintershall Dea had revenues and other income of €8.2 billion, income from operations before depreciation, amortization and exploration (EBITDAX) of €3.8 billion and adjusted net income of €950 million. Total production of Wintershall Dea (excluding Libya onshore) was 634,000 barrels of oil equivalent per day (BOEPD). As of December 31, 2021, proven and probable reserves stood at 3.4 billion barrels of oil equivalent (BOE), corresponding to a reserve to production ratio of 15 years.
Production 2021 by region
Proven reserves (2P) 2021 by region
In Germany, Wintershall Dea has been active in the exploration and production business for more than nine decades. Wintershall Dea has now concentrated its production to the Mittelplate and Emlichheim oil fields and the Völkersen gas field. 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. Concessions in the South of Germany and smaller participations in other licenses have been divested in the course of portfolio optimization measures. Wintershall Dea is actively engaged in the energy transition and is pursuing hydrogen prototype projects with partners to meet its climate targets.
Norway is Europe’s most important supplier of natural gas and oil besides Russia. Wintershall Dea has operated on the Norwegian continental shelf for almost 50 years and is now one of the leading oil and gas companies there. Wintershall Dea currently participates in 96 licenses, in 31 of them as operator. The portfolio in Norway consists of a large number of producing assets in different life cycles, including key development projects Nova, Dvalin and Njord.
Wintershall Dea has been active in the Dutch North Sea for more than 50 years. As a shareholder of Wintershall Noordzee, the company is currently one of the major producers of natural gas in the region.
Wintershall Dea has been producing oil successfully off the coast of Denmark since 2003. Today, Wintershall Dea has equity in the two oil fields Cecilie and Nini which are located in the Danish Central Graben and expected to remain in production until 2024. Further, Wintershall Dea draws on the potential of CO2 storage technologies for a cleaner energy future as one of the core members of the Project Greensand Consortium.
Wintershall Dea holds six concessions off the British coast as a shareholder of the operator Wintershall Noordzee. The most important projects in the British North Sea are the self-operated natural gas field Wingate, discovered in 2008, and the Silliminate field, which is partly in the Dutch North Sea.
Wintershall Dea is involved in the production and development of hydrocarbons in Western Siberia. On March 2, 2022, Wintershall Dea AG’s Management Board decided not to advance or implement any additional gas and oil production projects in Russia. Wintershall Dea’s existing onshore projects in Russia include the Urengoyskoye field – one of the world’s largest gas and condensate reserves – which is located 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 and production has started in 2021. In the Yamalo-Nenets Autonomous Okrug is the Yuzhno-Russkoye field, in which Wintershall Dea has a stake via the Severneftegazprom joint venture.
Wintershall Dea has been active in Argentina for more than 40 years. Today, the company has a stake in about 20 onshore and offshore fields, all of them non-operated. In the southern part of the country, Wintershall Dea together with TotalEnergies and Pan American Energy, is active in the offshore concession Cuenca Marina Austral 1 (CMA-1) contributing approximately 16% of total domestic gas production in Argentina. In the Neuquén province, Wintershall Dea participates in conventional production as well as in production from the highly prolific Vaca Muerta shale from the Aguada Pichana Este and San Roque blocks.
Mexico has some of the world’s largest proven reserves. After entering the country’s oil and gas market in 2017, Wintershall Dea established a major position there in just one year. This includes being operator of the producing onshore Ogarrio oil field and partner in the offshore development Zama. The company also holds shares in exploration licenses and made two promising discoveries.
As part of its continuous portfolio development, Wintershall Dea has decided to terminate all its operations in Brazil in the course of 2022.
Wintershall Dea has been active in Egypt for over 45 years. Currently it operates in the onshore Nile Delta, where Wintershall Dea was awarded a new exploration license in 2019. It is also a partner in the major West Nile Delta project, where five fields are now in production, most recently Raven, which started production in February 2021.
Through its affiliate Wintershall Aktiengesellschaft (WIAG), Wintershall Dea participates in crude oil production from nine oil fields across contract areas 91 (former concession 96) and 107 (former concession 97) in the Eastern Sirte Basin. After 54 years of own operatorship, WIAG in October 2020 handed over operatorship of contract areas 91 and 107 to Sarir Oil Operations, a joint venture between NOC (51%) and WIAG (49%) that has been established following the conversion of the former concession agreements to the EPSA IV contractual standard. Wintershall Dea also holds a minority stake in offshore oil production from Al-Jurf offshore platform in contract areas 15, 16 and 32 (former block C137).
Wintershall Dea has been active in Algeria since 2002 and is currently producing from the Reggane Nord project. Algeria has significant energy potential. The country is the third-largest exporter of gas to Europe after Russia and Norway, and is the largest natural gas producer in Africa. Wintershall Dea continues to strengthen its presence in Algeria. As of May 4, 2022, the company has entered into a sale and purchase agreement to acquire Edison’s 11.25% participating interest in the Reggane Nord natural gas project. After the transaction is closed, the consortium Groupement Reggane Nord (GRN), operator of the project, will comprise Sonatrach (40%), Wintershall Dea (30.75%) and Repsol (29.25%).
United Arab Emirates
The United Arab Emirates have the seventh-largest oil reserves in the world. Wintershall Dea has been active in the country 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.