Wintershall. At a glance

Transcription

1 Wintershall. At a glance

2 2016.

3 SAVinG AnD investing is not A contradiction for us in OrDer to continue GrOWinG in the LOnG term Mario Mehren Chairman Dear readers, Energy provides the basis for prosperity and growth. Even in 25 years time fossil fuels in particular crude oil and natural gas will continue to provide around three-quarters of the global energy mix. The worldwide requirement is growing but at the same time the reserves are limited. That is why we need innovative technologies to produce more effi ciently from conventional reservoirs. In addition, unconventional reserves such as shale gas and shale oil will also help to secure supplies. The E&P sector is currently undergoing radical changes in many different respects. The markets for oil and gas are turbulent and will probably remain so. A lower oil price means that E&P companies must work even more effi ciently. And the drop in gas prices is also making business more diffi cult. Nevertheless, Wintershall is ideally equipped to master these challenges. Saving and investing that s not a contradiction for us. On the one hand, operating expenses will be further optimized and the expenditure for exploration, development and technology in particular reduced in countries with a high cost environment. On the other hand, we will continue to invest in selected projects in our core regions in Europe, Russia, North Africa and South America as well as increasingly in the Middle East. We have been working in close partnership with Russia s Gazprom for more than 25 years. Together we are making a signifi cant contribution to securing Europe s energy supply, in particular through expanding the natural gas production in the Achimov Formation in Western Siberia. We are also expanding our partnership with Statoil in Norway. For example, the Maria fi eld will become Wintershall s fi rst self-operated development project to be brought into production there. We will therefore be signifi cantly increasing our overall production in both the North Sea and Russia, where we can build on strong and lasting collaborations. In our international energy partnerships we impress through our effi ciency, performance and innovation. We develop a large part of the new and pioneering technologies in our home region of Germany, where production has always been geologically complex and challenging. Domestic production therefore provides our center for continual innovations. The past few years have shown that we are on the right track in terms of our company s direction and strategy. We will expand our business with exploration, partnerships and technological expertise, and thus lay the foundation for our future production growth directly at the major oil and gas sources. Shaping the future.

4 About us. Wintershall Germany s largest international oil and gas producer can look back on 120 years of drilling experience. For more than 85 years, we have been actively involved in the exploration and production of crude oil and natural gas. The company employs about 2,000 people from 50 countries. We consciously focus on selected core regions where our company has a high level of regional and technological expertise. For us as a technology-driven E&P specialist, Germany provides a hub for innovation and research. This innovation stands us in good stead around the world in forging international energy partnerships. We are actively investing in the development of new reservoirs and the expansion of existing fields. In doing so, we always put our high standards in health, environmental protection and occupational safety on a par with commercial interests. Our history Wintershall was established in 1894 for mining potash salt. The company name is made up of the surname of our founder, Carl Julius Winter, and the old Germanic word Hall, meaning salt. We have produced hydrocarbons since 1930, and since 1970 we have focused entirely on crude oil and natural gas. Our shareholder We have been a wholly owned subsidiary of BASF since Our core regions Europe Russia North Africa South America Middle East

5 Our convictions For us, health, environmental protection and occupational safety are always treated on a par with commercial interests. We develop processes to use resources even more efficiently and minimize the impact on the environment. The benchmarks for our actions are compliance with international conventions, regional laws and the exacting standards we have set ourselves. Our values We are creative, have the courage to pursue unconventional ideas, enter value-creating partnerships and engage in technological innovation. We are open, appreciate diversity and promote dialogue. We act as a responsible corporate citizen, work in a secure and reliable manner, and always make safety our prime concern. We act as entrepreneurs and convert market needs into customer solutions. Our goals We want to continue to grow at the source. Through exploration, strategic alliances and technological expertise, for example in the area of enhanced oil recovery (EOR). From 2018 onwards, we want to produce 190 million barrels of oil equivalent (BOE) a year.

6 Our core regions. We have been actively involved in the exploration and production of oil and gas for over 85 years, focusing on selected core regions. In addition to our home market of Germany, we operate primarily in Europe, North Africa, South America, Russia and increasingly in the Middle East, where we have built up a high level of regional and technological expertise. Germany We have been producing crude oil in Germany since 1930 and natural gas since We operate eight oil and eight gas fields as well as the only gas production platform in the the German North Sea. In addition, we have a 50 percent stake in Mittelplate, Germany s largest oil field off the North Sea coast. Due to the difficult geological and legal conditions, oil and gas production in Germany has become a source of continuous innovation for Wintershall, and this stands us in good stead around the world in forging international energy partnerships. In 2016, we started the first of twelve wells in Emlichheim to further increase production on the German-Dutch border. We have also completed the new Aitingen Süd 3 well at the Aitingen site near Augsburg. In Landau, we are conducting a 3D seismic survey to re-evaluate the geological conditions in the production area so that we can identify where oil reserves still remain. South America We have been successfully producing gas from significant reservoirs in Argentina since Concessions in oil and gas fields in central Argentina and off the coast of Tierre del Fuego give us access to promising hydrocarbon reserves. Production from the Vega Pléyade offshore field off the coast of Tierra del Fuego was started in The Vega Pléyade project, in which we are jointly involved, is set to achieve a daily production volume of ten million cubic meters. As the operator in the Aguada Federal block, we have spudded further wells into the shale in the Vaca Muerta formation. North Africa In Libya, one of Africa s largest oil producers, we have been actively involved in the exploration and production of oil since The largest reservoir is the As-Sarah oil field near the Jakhira oasis, about 1,000 kilometers southeast of the capital Tripoli. In addition, we are also involved in the Al Jurf offshore platform. In 2016, the situation in the country remained challenging. Due to protracted blockages of the export infrastructure, we only managed to resume oil production in the onshore Concession 96 in September. However, the fields in Concession 97 remain closed. The production operations at Al- Jurf were not hindered during the year.

7 MIDDLE EAST EUROPe Since 1965, we have also been producing oil and gas in the Dutch sector of the North Sea. We have acquired promising licenses in British, Danish and Norwegian territorial waters. We are boosting our activities significantly and are creating further growth potential, in particular on the Norwegian Continental Shelf. Two subsea installations for the self-operated Maria field were lowered into the Norwegian Sea in The first oil is set to be recovered at the end of Following Knarr and Edvard Grieg, the production start of the Ivar Aasen offshore platform already represents the third Norwegian field that we have successfully put into operation as a partner within the last two years. The Middle East possesses around 50 percent of the world s oil and gas reserves. No other region holds similar potential. Wintershall is therefore strengthening its involvement in the region. In 2010, we opened a representative office in Abu Dhabi, and in 2012 we took over, as operator, the technical assessment of the Shuwaihat sour gas and condensate field in the United Arab Emirates. In November 2016, we spudded the second self-operated appraisal well for developing the Shuwaihat sour gas field in Abu Dhabi. This is also the first offshore appraisal well. RuSSia We have been collaborating with Gazprom for 25 years. Our exploration and production projects, Yuzhno Russkoye and Achimgaz, make a significant contribution to securing Germany s and Europe s natural gas supplies, both today and in the future. What is more, as part of a joint venture with Russia s Lukoil, we have been producing oil in the Volgograd region for over two decades. Achimgaz, a joint venture between Wintershall and Gazprom, achieved the production mark of 20 billion cubic meters of natural gas in Natural gas and condensate have been produced from the low-lying Block 1A of the Achimov Formation in the Urengoy Novy field since The Yuzhno Russkoye joint venture between Wintershall, Gazprom and Uniper recorded a further milestone in the middle of 2016: 200 billion cubic meters of natural gas have now been recovered there. Countries in which Wintershall has exploration and production activities.

8 Our Strategy. We will continue to need crude oil and natural gas in the future. Not only for power and heating, but also for many chemical products such as plastics, detergents, paints and even pharmaceuticals. This is why we are strengthening our presence at the sources and are developing new technologies to make the production of these resources even better, more efficient and safer. We take responsibility in everything we do: no matter where we work, health, environmental protection and occupational safety are always treated on a par with commercial interests. We want to continue to grow at the source: by focusing on our core regions, entering into and expanding strong partnerships with NOCs and international E&P companies, and by contributing with our technical expertise to projects we are developing. We believe that Oil and gas will continue to be needed in the future. New technologies that are kind to the environment are a competitive advantage. Long-term partnerships lead to common success. This is why we focus on Core regions and on strengthening our presence at the source. Technological expertise and innovation. Strong partnerships and selected alliances (Gazprom, Statoil, ADNOC). Our focal points for further growth Europe: to move from discovery to production, especially in Norway. Russia: to expand gas and condensate production in Western Siberia. South America: to develop resource potential in Argentina. Middle East: to apply technologies and develop into a core region.

9 85 years of exploration and production experience. 190 million barrels of oil equivalent (BOE) a year planned from 2018 onward. 2 million tonnes of CO2 emissions a year avoided during oil production by using rather than flaring associated gas.

10 WintersHALL FAct 20 More than 20 offshore platforms are operated by Wintershall in the southern North Sea. These platforms are controlled using a high-tech remote monitoring system in Den Helder. 45 percent of the components used in wind turbines are produced from crude oil or products from the petrochemical industry. 60 liters of crude oil are used in the production of a single sofa. 113 wells are planned in the coming years to raise the production of the German- Russian joint venture, Achimgaz, to an annual rate of eight billion cubic meters of natural gas. 40,000 products in the chemical industry are dependent on crude oil. Crude oil is used as a raw material for plastics used in ipads, lunchboxes and CDs. 120,000,000 36,000 The Vaca Muerta formation in the Argentine province of Neuquen is more than 36,000 square kilometers in size. 80,000 barrels of oil equivalent are currently produced each day by Wintershall in Norway. Following the Knarr and Edvard Grieg production reservoirs, Ivar Aasen is now the third fi eld to be successfully transferred by Wintershall into production within the last two years. This has enabled us to increase our daily production in Norway to more than 80,000 boe. The horsehead pump for the Düste 7 well has so far nodded 120,000,000 times. This fi rst well in the Aldorf 1 oil fi eld still produces oil today and has been continuously doing so since ,000,000,000 0,00 cubic meters of natural gas are produced from the Yuzhno Russkoye fi eld each year. That would be enough to fi ll a cube with almost three-kilometer-long sides. Wintershall has a 35% stake in the project.

11 s & Figures WinterShALL GrOuP Sales to third parties million 2,768 12,998 Investments and acquisitions 2 million 1,115 1,823 Income from operations (EBIT) million 499 1,072 Number of employees As of 31 Dec. 1,976 2,000 exploration AnD PrODuctiOn Crude oil production MMBOE Natural gas production MMBOE From Q4/2015 excluding contributions from the shares sold in the trading and storage activities as well as Wintershall Nordzee B. V. 2 Additions to property, plant and equipment and intangible assets. 3 Million barrels of oil equivalent.

12 COVER PHOTO Since 2014, Wintershall has been involved in the Aguada Federal Block in the province of Neuquén, where it holds the operatorship. In the block, highly promising shale belonging to the Vaca Muerta Formation is suspected at a depth between 2,700 and 3,000 meters below ground. The reservoir forms one of the largest shale gas and shale oil formations worldwide. The exploration and production of unconventional resources poses major technological challenges. Nevertheless, Wintershall is ideally equipped to meet these challenges thanks to its decades of experience in the environmentally compatible and efficient recovery of hydrocarbons from complex reservoirs and its unique technological expertise garnered from its tight-gas production in Germany. Copyright: Cover: Wintershall / Alejandro Kirchuk Page 2 top left: Wintershall / Christian Burkert Page 2 bottom left: Vestbase AS / Ture Haugen Page 2 top right: Total Austral Page 2 bottom right: Wintershall / Jack Dabaghian Page 3: Wintershall / Peter Rigaud Page 5: Wintershall / Frederik Laux Page 9: Wintershall / Justin Jin Page 10: nerthuz / Fotolia.com, selensergen / Fotolia.com, aminaaster / Fotolia.com, HandmadePictures / Fotolia.com, Beboy / Fotolia.com, dny3d / Fotolia.com RESPONSIBLE FOR THE CONTENT Wintershall Holding GmbH, Kassel Please get in touch with us if you want to discover more about our company, need additional information, or have questions about Wintershall. Tel.: Fax: info@wintershall.com Wintershall Holding GmbH Friedrich-Ebert-Str Kassel, Germany Also on: