WINTERSHALL. AT A GLANCE. 2017/2018
» OUR GOAL: CONTINUE TO GROW PROFITABLY – DIRECTLY AT THE MAJOR OIL AND GAS SOURCES «
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 efficiently 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 efficiently. And the drop in gas prices is also making business more difficult. 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 significant contribution to securing Europe’s energy supply, in particular through expanding the natural gas production in the Achimov Formation in Western Siberia and through our involvement in pipeline development. We are also expanding our partnership with Statoil in Norway. As Wintershall’s first operated Norwegian development project, we transferred the Maria field into production at the end of 2017. We will therefore be significantly 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 efficiency, performance and innovation. The past few years have shown that we are on the right track in terms of our company’s direction and strategy. We will therefore continue to grow – directly at the major oil and gas sources. BASF’s and LetterOne’s planned merger of their respective oil and gas producing subsidiaries Wintershall and DEA (Deutsche Erdöl Aktiengesellschaft) could provide another important step towards profitable growth. With more operated projects, stable, long-term partnerships and a further optimized portfolio, Wintershall DEA would make an even greater impact in the international market.
THE COMPANY: WHO WE ARE
SUCCESS DOESN’T COME ALONE. BUT FROM THE ROUGHLY 2,000 EMPLOYEES AROUND THE WORLD
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 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 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 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 CORE REGIONS: Europe Russia North Africa South America Middle East
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.
Entenschnabel
Mittelplate
Barnstorf Emlichheim
Kassel
Landau
GERMANY IS OUR HOME BASE
Aitingen
120 years ago, Carl Julius Winter and Heinrich Grimberg founded the Wintershall drilling company. The company name is made up of the family name of the company founder, Carl Julius Winter, and the Germanic word “Hall”, mening salt. During the first few years, the company mined potash until oil accidentally leaked into one of the potash mining shafts in 1930. From this point onwards we also produced crude oil and, from 1951, natural gas. Today we are Germany’s largest internationally active crude oil and natural gas producer and belong to the BASF Group. The production of oil and gas in Germany is particularly challenging as a result of the complex geological and legal conditions. For us they have provided the basis for continual innovations – innovations with which we impress worldwide and establish international energy partnerships.
BENEFITING FROM 85 YEARS OF EXPERIENCE! Entenschnabel In 1974 the natural gas field was discovered in the so-called Entenschnabel (“Duck’s Bill”). We are the operator of A6-A, the only gas production platform in the German North Sea.
Aitingen We have been producing crude oil in the Großaitingen region since 1979. Several successful drilling operations have enabled us to increase our production from the Aitingen reservoir over many years. We are currently investigating whether we can reactivate old oil fields in Bedernau and Lauben in Lower Allgäu, as well as in the Upper Swabia region, which are no longer being used for producing oil.
Mittelplate Together with DEA, we have been producing oil in Germany’s Wadden Sea since 1987. For this purpose we have constructed the Mittelplate artificial drilling and production island, which is secure against all the forces of nature. The production in the Wadden Sea, which is a sensitive ecosystem and world heritage site, has always been incident-free.
Kassel Our worldwide company headquarters is located in the heart of Germany. This provides the workplace for one third of our employees, who come from more than 50 countries. Kassel is a cultural and economic center in North Hesse.
Barnstorf In 1953 we founded the Wintershall oil production facility in Barnstorf and have been producing crude oil and natural gas here ever since. Here we bundle our German crude oil and natural gas activities. We inaugurated the international drill core storage facility in 1986 and expanded it in 2012. A new laboratory is due to commence work in autumn 2018.
Landau In the Landau region we have been producing oil from one of the largest fields in the Upper Rhine Plain since 1955. We have so far sunk about 200 wells, of which 70 are still in operation. We are aiming to maintain a stable level of production in the midst of the Rhineland-Palatinate vineyards for the next few years. We conducted a 3D-seismic survey at the beginning of 2017 for the purpose of spudding new wells.
Change of perspective with Wintershall Under this motto, the hot air balloon provides a very special view of Barnstorf and the domestic production regions. Wintershall has been supporting the traditional Barnstorf Balloonist Festival for many years.
Emlichheim We have been producing crude oil on the German-Dutch border for more than 70 years. We have been utilising flooding technology here for 35 years, thus enabling us to maintain production at a constant level. We are also continuously expanding the production capacities with new wells.
WE’RE AT HOME THROUGHOUT THE WORLD 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. www.wintershall.com/worldwide
South America We have been successfully producing gas from significant reservoirs in Argentina since 1978. Concessions in oil and gas fields in central Argentina and off the coast of Tierre del Fuego give us access to promising hydrocarbon reserves. 2017 As the operator, we have carried out shale oil pilot projects in the Aguada Federal and Bandurria Norte blocks in the highly promising Vaca Muerta Formation. The results are currently being analyzed. We also found oil during exploratory drilling in the CN-V block in Mendozza province.
Countries in which Wintershall has exploration and production activities.
Germany We have been producing crude oil in Germany since 1930 and natural gas since 1951. 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. 2017 In Wintershall‘s largest German onshore oil field in Emlichheim, Germany, we began preparations for a 3D seismic survey in the autumn to reassess the geological conditions of the production area. Such a survey was already completed at the beginning of the year in Landau. In addition, we have also successfully completed new oil drilling in Aitingen, Emlichheim and Bockstedt.
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.
Middle East 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. 2017 In Abu Dhabi we have successfully completed the second appraisal well in the Shuwaihat sour gas and condensate field – quicker than scheduled and at a much lower cost than planned. The well was drilled five kilometers offshore in the Arabian Gulf. The data collected will form the basis for evaluating a possible commercial development of the field over the next few years.
2017 Our natural gas production in the Yuzhno-Russkoye natural gas field in Western Siberia celebrated its tenth anniversary in 2017. We have been annually producing 25 billion cubic meters of natural gas there at plateau level since 2009. Wolgodeminoil, Wintershall‘s joint venture with RITEK, also celebrated its 25th anniversary. The gradual development of the Urengoy field was continued in Block 1 A in the Achimov Formation, with production achieved from 88 wells by the end of 2017.
North Africa 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. 2017 We commenced oil production from the Maria field in Norway one year earlier and with 20 percent fewer investment costs than planned. Wintershall’s next operated project on the Norwegian Continental Shelf will be the development of the Nova field (formerly Skarfjell).
In Libya, one of Africa’s largest oil producers, we have been actively involved in the exploration and production of oil since 1958. 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. The situation in the country remained challenging in 2017. We managed to produce oil from the onshore concessions 96 and 97 from June to October. The production company in Al-Jurf did not experience any problems during the course of the year.
A GLIMPSE INTO THE WORLD OF OUR TECHNOLOGIES
Our portfolio of applied technologies covers a wide spectrum, ranging from tried and tested methods such as steam flooding and hydraulic fracturing to unusual innovations such as the use of fungus to improve oil production. Wintershall’s aim: To find a suitable technical solution for every challenge.
WE GET OIL STEAMED UP Steam flooding technology – With more than 70 years of production, the oil field in Emlichheim near the German-Dutch border has actually long reached retirement age. However, it is still showing no signs of tiring, and Wintershall is still producing oil there at a constantly high level – currently around 160,000 tons of crude oil per year. That is due in no small part to the implementation of an innovative method: since 1981 we have been deploying steam flooding technology in Emlichheim. Here, hot steam at a temperature of 300 °C is injected into the reservoir at a pressure of 100 bar. In the porous stone it can easily spread out and warm up the dense oil, which becomes more viscous and therefore easier to extract. This technology is so effective that the Emlichheim field will also be able to supply Germany with crude oil for the next 25 years.
WE FREE NATURAL GAS FROM DENSE ROCK Tight Gas – We can also call on our many years of experience in the production from complex reservoirs, such as with the production of tight gas: that is natural gas that has collected in small, poorly interconnected cavities in the rock (mostly sandstone). The natural gas is unable to flow freely to the wells through these less permeable rock strata. That is why the hydraulic fracturing method is used: it opens small, roughly five-millimeter-thin flow channels in the rock and thus makes the production possible. The technology is well tried and tested: Wintershall has been producing tight gas for more than 30 years in Germany, the Netherlands, Russia and Argentina – without any adverse effects on the environment or drinking water.
WE CONTROL NATURAL GAS PRODUCTION BY SATELLITE RCO center – We are not resting on our laurels but are continually developing ourselves further. This includes the optimization of existing processes. Proof of this is provided by our Center for Remote Controlled Operations (RCO) in Den Helder in the Netherlands. The remote monitoring system, which is one of the most advanced systems of its kind in the world, controls the production operations of almost all the 20 plus offshore platforms operated by Wintershall in the southern North Sea. The system not only secures the efficient production of the offshore reserves but also enables the economic development of small and medium-sized fields in the southern North Sea. This has also enabled us to considerably reduce the number of flights to the platforms – which makes an enormous contribution to the safety of our staff.
WE SWEETEN SOUR NATURAL GAS Sour gas – The production of sour gas is a complicated undertaking because it contains both hydrogen sulfide and carbon dioxide. Both components are highly corrosive, and hydrogen sulfide is also highly toxic. Those who want to produce sour gas must purify it while maintaining extremely high safety standards. Wintershall is a pioneer in this regard, and has already been recovering sour gas in Germany since 1961. For this purification, which is known as sweetening, Wintershall uses the BASF solvent MDEA, which removes the hydrogen sulfide from the gas. The “Claus process” then converts the hydrogen sulfide into pure sulfur, which is sold as a raw material for the chemical industry. This method has enabled us to successfully develop 16 sour gas fields and safely recover more than 20 billion cubic meters of sour gas.
WE PRODUCE CRUDE OIL IN HARMONY WITH THE ENVIRONMENT Mittelplate – In the North Sea, we have proved for more than two decades that it is indeed possible to reconcile ecological and commercial interests with oil production. Together with the operator DEA, Wintershall has been jointly producing oil from Germany’s largest oil reserve, the Mittelplate offshore field in the ecologically sensitive Wadden Sea, since 1987 – and without any incidents. The artificial production island is completely sealed off by a steel and concrete caisson from the sensitive environment and thus provides reliable protection, for example against storm surges or ice drifts. In order to optimize oil production, the development of the field has been supplemented by highly deviated extended reach wells drilled from the mainland, which are technically extremely complex. With lengths of up to nine kilometers, these are some of the longest in the world.
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. www.wintershall.com/strategy 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.
85 years of exploration and production experience.
-50 to +50 °C
is the range of temperatures in which we work in our core regions worldwide.
WE BELIEVE THAT 0 Oil and gas will continue to be needed in the future. 0 New technologies that are kind to the environment are a competitive advantage. 0 Long-term partnerships lead to common success. THIS IS WHY WE FOCUS ON 0 Core regions and on strengthening our presence at the source. 0 Technological expertise and innovation. 0 Strong partnerships and selected alliances (Gazprom, Statoil, ADNOC).
2 million
tonnes of CO2 emissions a year avoided during oil production by using
rather than flaring associated gas. OUR FOCAL POINTS FOR FURTHER GROWTH 0 Europe: to move from discovery to production, especially in Norway. 0 Russia: to expand gas and condensate production in Western Siberia. 0 South America: to develop resource potential in Argentina. 0 Middle East: to apply technologies and develop into a core region.
36,000 The Vaca Muerta formation in the Argentine province of Neuquen is more than 36,000 square kilometers in size.
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
45
wells are planned in the coming years to raise the production of the GermanRussian joint venture, Achimgaz, to an annual rate of eight billion cubic meters of natural gas.
20
More than 20 offshore platforms are operated by Wintershall in the southern North Sea. These platforms are controlled using a hightech remote monitoring system in Den Helder.
40,000
WINTERSHALL FACTS & FIGURES
chemical products depend on crude oil. Oil is utilised as a feedstock for making plastics used in iPads as well as in lunchboxes and CDs.
Wintershall produces 100,000 barrels of oil equivalent daily in Norway. Following Ivar Aasen, Knarr and Edvard Grieg, we successfully transferred Maria – our fourth project – into production within three years as the operator and partner. This has enabled us to increase our daily production in Norway to around 100,000 boe.
120,000,000 The horsehead pump for the Düste 7 well has so far nodded almost 120,000,000 times. This first well in the Aldorf 1 oil field still produces oil today – and has been continuously doing so since 1952.
Wintershall Group Sales to third parties Investments1 Income from operations (EBIT) Number of employees
2017
2016
3,244 988 1,043 As of 31 Dec. 1,984
2,768 1,115 499 1,976
€ million € million € million
Exploration and Production
1 2
Crude oil production
MMBOE2
50
48
Natural gas production
MMBOE2
114
117
IN CONTACT
Additions to intangible assets and property, plant and equipment (including acquisitions). Million barrels of oil equivalent.
You would like to join our Wintershall team? You can find career entry opportunities and job vacancies on our website at: www.wintershall.com/careers You would like to work together with Wintershall as a service provider? Information about collaboration opportunities is available online at: www.wintershall.com/procurement
Imprint Copyright: Cover: Wintershall / Harald Pettersen Page 2 top left: Wintershall / Thor Oliversen Page 2 bottom left:Wintershall / Frederik Laux Page 2 top center: Wintershall / Thor Oliversen Page 2 right: Wintershall / Frederik Laux Page 3: Wintershall / Peter Rigaud Page 4: Wintershall / Fred Arne Wergeland Page 7: Wintershall / Christian Burkert Page 12 top left: Wintershall /Justin Jin Page 12 right: Total Austral Page 12 top center: Wintershall / Thor Oliversen Page 12 bottom left: Wintershall /Justin Jin
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.: + 49 561 301-0 Fax: + 49 561 301-1702 info@wintershall.com Wintershall Holding GmbH Friedrich-Ebert-Str. 160 34119 Kassel, Germany www.wintershall.com Also on: Social icon
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A view of the drilling pipe on the Deepsea Stavanger platform, from which the wells for the Maria field were spudded into the depths of the Norwegian Sea.