Germany's Wintershall to invest €2bn on Norwegian continental shelf fields
Staff Writer |
Europe is well advised to invest in collaborating with reliable and proven supply countries to secure the future energy supply. This is what Mario Mehren, CEO of Wintershall, underlined at Norway's largest energy conference and exhibition, Offshore Northern Seas (ONS) in Stavanger.
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"Europe needs to be aware of its strengths and must tackle the new political and economic challenges in concert. Only through closely collaborating with our neighbors can we guarantee supply security today and in the future," Mehren explained at the Wintershall press conference at the ONS.
Norway and Russia in particular, as the EU's long-standing reliable energy partners, have a key role to play. "Both countries are and will remain the decisive energy partners of the European Union," Mehren added.
Wintershall is therefore banking on growth in Norway and plans to invest a total of around €2 billion in exploring and developing its fields on the Norwegian Continental Shelf from 2017 to 2020.
More than a third of Wintershall’s global exploration budget will be used in Norway.
"Our project pipeline is well filled! Wintershall already holds over 50 licenses in Norway today. We believe in the potential of the Norwegian Shelf. Here we also see one of our core production areas in the long term," explained Martin Bachmann, the Wintershall Executive Board member responsible for exploration and production in Europe and the Middle East, at the press conference.
This strategy distinguishes Wintershall from many major competitors in Norway: "Wintershall has consistently invested further in Norway," said Bachmann.
"And what's more, we want to grow in Norway. For 2019 alone, we're planning four new exploration wells. The execution phase for the Nova project already started in early summer and plans for a possible development of our Balderbrå prospect are also progressing. We expect a further increase in our production volume with the start of Aasta Hansteen before the end of the year."
Once the proposed merger of Wintershall and DEA, a subsidiary of LetterOne is completed, the new Wintershall DEA company would be among the top five oil and gas producers in Norway.
"Wintershall and DEA have been firmly established on the Norwegian Shelf for years. Norway would become an even more important growth region for Wintershall DEA and – after Russia – by far the largest production location.
"With more than 100 licenses and shares in 20 producing fields, we could increase our joint production in Norway to over 200,000 barrels of oil equivalent per day in the near future," said Mario Mehren at the press conference in Stavanger: "Within a decade we have grown from a small project office into one of the most important E&P players in Norway."
Norway's energy policy makers have also contributed to this success story. The gas and oil industry is the main cornerstone of the Norwegian welfare system. More than 200,000 people work in the industry, accounting for over 40% of exports. ■