Germany's Wintershall targets 2013 increase in oil, gas output
London (Platts)--26Feb2013/635 am EST/1135 GMT
Germany's Wintershall expects to increase its oil and gas output in 2013
mainly as a result of higher volumes from its operations in Russia, Norway
and Libya, the company's parent BASF said Tuesday.
In its outlook for 2013, BASF said Wintershall would close a number of
key deals, helping it raise output.
In 2012, Wintershall's production rose by 27% to 144 million barrels of
oil equivalent (395,000 boe/d), mostly as a result of the return of
production in Libya.
Wintershall operates output of some 100,000 b/d in Libya, which was shut
in for most of 2011 because of the civil war in the North African country.
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It returned production toward normal levels over the course of 2012.
"This significant growth is primarily attributable to the continuous
production of crude oil in Libya," BASF said in its 2012 earnings report.
Wintershall operates eight fields in onshore concessions 96 and 97 in
"After resuming production in October 2011, we were able to raise
production in 2012 significantly faster than expected," it said.
"We achieved an average daily production rate of more than 80,000
boe/d," it said.
KEY 2013 DEALS
One of the key deals set to be finalized this year is Wintershall's
acquisition of three producing fields in the Norwegian North Sea as part of
an asset swap deal with Norway's Statoil.
Wintershall will increase its output in Norway by 3,000 boe/d to around
40,000 boe/d once it closes the acquisition of stakes in the producing Brage,
Gjoa and Vega fields.
"This transaction, planned for the middle of 2013, will considerably
strengthen our exploration and production activities [in Norway]," BASF said.
It is also set to close an asset swap with Russia's Gazprom.
"We will receive 25% plus one share in two additional blocks of the
Achimov formation in the Urengoy field in West Siberia in 2013," it said.
"In this way, we continue to advance our joint production at the
BASF also pointed to other strategic initiatives the company is looking
In June 2012, it signed an agreement in Abu Dhabi with state-owned ADNOC
and Austria's OMV on the appraisal of the Shuweihat sour gas and condensate
Wintershall also holds shares in a total of 15 onshore and offshore
fields in Argentina, but it warned Tuesday of the ongoing risks of operating
in the South American country.
"The Argentinian government issued a decree toward the further
regulation of the energy sector which will negatively affect our activities,"
"We are closely observing the political situation in Argentina that led
to the partial nationalization of YPF and the intensification of foreign
exchange restrictions in order to be able to react quickly and
appropriately," it said.
BASF also said it was assuming an average oil price for 2013 of $110/b
compared with an average of $112/b last year.
--Stuart Elliott, email@example.com
--Edited by Maurice Geller, firstname.lastname@example.org