Non-Integral Shareholding in Wintershall Dea
In May 2019, Wintershall Holding GmbH and DEA Deutsche Erdoel AG merged to form 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 11 countries worldwide in an efficient and responsible manner. With activities in Northern Europe, 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. The company 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.
Due to increasing restrictions on its ability to influence its investments in Russia, largely as a result of government interference, Wintershall Dea deconsolidated its Russian segment in the fourth quarter of 2022 and subsequently recognized it as a financial asset measured at fair value in accordance with IFRS 9. In addition, on January 17, 2023, Wintershall Dea announced its full exit from Russia in compliance with all legal requirements.
Following the approval of all relevant authorities, BASF and LetterOne successfully completed the merger of Wintershall and DEA on May 1, 2019. BASF holds 72.7% of the ordinary shares in Wintershall Dea AG; 27.3% are held by LetterOne. The preference shares previously held by BASF were converted into ordinary shares on May 1, 2022.
In 2022, Wintershall Dea had revenues and other income of €18.7 billion (€16.9 billion excluding segment Russia), income from operations before depreciation, amortization and exploration (EBITDAX) of €7.7 billion (€5.9 billion excluding segment Russia) and adjusted net income of €2.4 billion (€928 million excluding segment Russia). Total production of Wintershall Dea (excluding Libya onshore) was 597,000 barrels of oil equivalent per day (BOEPD) (321,000 BOEPD excluding segment Russia). As of December 31, 2022, proven and probable reserves stood at 1.4 billion BOE, corresponding to a reserve to production ratio of 12 years.
|Revenues and other income||16,936||6,941|
|Adjusted net income3||928||403|
1 Unaudited figures
2 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.
3 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).
Production 2022 by region (excluding Russia)
Proven reserves (2P) 2022 by region (excluding Russia)
Wintershall Dea has been active in Algeria since 2002 and is currently producing from the Reggane Nord project. Algeria has significant energy potential. It is the leading natural gas producer in Africa and a major gas exporter to Europe. The country is an OPEC member and one of the top three oil producers in Africa. In May 2022, Wintershall Dea entered into a sale and purchase agreement to acquire Edison’s participating interest in the Reggane Nord natural gas project. Upon the closing of the transaction, the Groupement Reggane Nord consortium, operator of the project, would comprise Sonatrach (40%), Repsol (36%) and Wintershall Dea (24%).
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 Neuquén province, Wintershall Dea participates in conventional production as well as in production from the Vaca Muerta shale from the Aguada Pichana Este and San Roque blocks. In 2022, Wintershall Dea focused its activities in Argentina on gas production and divested its 50% interest, including operatorship, in the unconventional Aguada Federal and Bandurria Norte shale oil blocks in Neuquén province. In September 2022, Wintershall Dea and its partners TotalEnergies and Pan American Energy took the final investment decision (FID) to develop the Fénix gas project offshore Tierra del Fuego. First gas from Fénix is projected for 2025 and is planned to reach a peak gross production of around 10 million cubic meters of gas per day.
Wintershall Dea has been producing oil successfully off the coast of Denmark since 2003. Today, Wintershall Dea has a share 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. In March 2023, the consortium initiated the first CO2 storage as part of the pilot phase of the project.
Wintershall Dea has been active in Egypt for over 45 years. Currently it produces gas in the onshore Nile Delta as part of the DISOUCO joint venture and as partner to BP for the West Nile Delta offshore gas project. In November 2022, Wintershall Dea and operator BP were awarded the North West Abu Qir Offshore exploration block, where Wintershall Dea holds a 17.25% participating interest.
In Germany, Wintershall Dea has been active in the exploration and production business for more than nine decades. The company has concentrated its production to the Mittelplate and Emlichheim oil fields and the Völkersen gas field. Production in Germany requires particular technological 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. Wintershall Dea is actively engaged in the energy transition and is pursuing hydrogen prototype projects with partners to meet its climate targets.
Through its affiliate Wintershall Aktiengesellschaft (WIAG), Wintershall Dea participates in crude oil production from nine oil fields in the Eastern Sirte Basin. 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).
Mexico has some of the world’s largest proven reserves. Wintershall Dea entered the country’s oil and gas market in 2017 and has established a major position. This includes being operator of the producing onshore Ogarrio oil field and partner in the offshore development Zama. This development in Block 7 of the Sureste Basin is progressing with the unit development plan that was submitted to the authorities in March 2023. In October 2022, Wintershall Dea announced the expansion of its presence in Mexico with the acquisition of a 37% non-operated participating interest in the producing Hokchi Block from Hokchi Energy. The field currently produces around 26,000 BOEPD, with a planned ramp-up to a gross production of 37,000 BOEPD in 2023. In Q4 2022, Wintershall Dea started drilling its first own-operated offshore exploration well in Block 30 of the Sureste Basin in the Gulf of Mexico.
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.
Norway has become the most important gas provider for the E.U. 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. The company currently participates in about 100 licenses, in 24 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. In July 2022, Wintershall Dea’s own-operated Nova development came on stream to help meet Europe’s energy needs. The field is in its ramp-up phase and is expected to contain estimated recoverable gross reserves of 90 million BOE, of which the majority is oil. In December 2022, the Njord field re-started production and is expected to contribute estimated recoverable gross reserves of 177 million BOE, of which the majority is gas. Njord is currently ramping up production. Wintershall Dea’s own-operated development project Dvalin started production in February 2023. In October 2022, Wintershall Dea and its partner CapeOmega were awarded the operatorship of the Luna CO2 storage licence in the Norwegian North Sea. The licence provides storage potential of more than 5 million tons of CO2 per year.
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.
In the United Kingdom, Wintershall Dea’s 50% shareholding Wintershall Noordzee holds and operates several licences. Gas production is clustered around the established Wingate gas field, which was discovered in 2008. Future activities will concentrate on the efficient extension of this area.