Wintershall and DEA Deutsche Erdoel complete merger
Published by Nicholas Woodroof,
Editor
Oilfield Technology,
“We are a European champion and are making an important contribution to Europe’s energy security,” explained Mario Mehren, Chairman of the Board of Executive Directors and CEO of Wintershall Dea. Following the approvals granted by all relevant authorities, shareholders BASF and LetterOne successfully completed the merger on 1 May 2019. The merger was agreed in September 2018.
In 2018, pro-forma hydrocarbon production of Wintershall and DEA together was 215 million boe, equivalent to around 590 000 boe per day. At the end of 2018, proven reserves on a pro-forma basis stood at 2.4 billion boe, which leads to a reserve to production ratio of 11 years.
Wintershall Dea expects to realise synergies of at least €200 million per year as of the third year following the closing of the transaction, in particular from operating and capital expenditure savings. According to current plans, around 1000 of the total 4200 full-time positions are expected to be reduced worldwide. The social partners are currently working on socially compatible solutions regarding the necessary personnel adjustments.
The integration of Wintershall and DEA is expected to be completed in approximately one year. BASF and LetterOne expect to offer shares in Wintershall Dea through an Initial Public Offering (IPO) in the second half of 2020, subject to market conditions.
Wintershall Dea will initially operate as a GmbH with two corporate headquarters: Kassel and Hamburg. The company will be managed by an Executive Board consisting of five members: Mario Mehren, Chairman and CEO; Maria Moraeus Hanssen, Deputy CEO and Chief Operating Officer (COO), responsible for Europe and MENA; Thilo Wieland, Member of the Executive Board responsible for Russia, Latin America and Midstream; Hugo Dijkgraaf, Chief Technology Officer (CTO) and Paul Smith, Chief Financial Officer (CFO).
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/03052019/wintershall-and-dea-deutsche-erdoel-complete-merger/
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