Wintershall Dea SEPTEMBER 2019 - Fixed Income Investor Presentation
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Wintershall Dea
Fixed Income Investor Presentation
SEPTEMBER 2019
INVESTOR PRESENTATION
AGENDA
1 COMPANY INTRODUCTION AND STRATEGY
2 CREDIT HIGHLIGHTS
3 HISTORICAL FINANCIALS
4 CONCLUSION
A APPENDIX
PAGE 2
SECTION 1
COMPANY
INTRODUCTION
AND STRATEGY
PAGE 3
COMPANY INTRODUCTION AND STRATEGY
FOCUSED ACTIVITIES ACROSS THE E&P
VALUE CHAIN
UPSTREAM MIDSTREAM
European Pipeline
Exploration – Development – Production
Networks
1 2
Stable cash flows
Strong cash flows from
from infrastructure
E&P activities
assets
SOURCE: COMPANY INFORMATION
PAGE 4
COMPANY INTRODUCTION AND STRATEGY
WINTERSHALL DEA AT A GLANCE
DIVERSIFIED UPSTREAM PORTFOLIO CENTRED AROUND 4 REGIONS
589 mboe/d 66% Gas Baa2/BBB
RESERVES CATEGORISATION (2018YE)
2018 WI Production 2018 Production Split Moody’s/Fitch Ratings bn boe
2P RP1 2P+2C
1P RP1
18 years RP1
15 years
31 years
Northern Europe Russia
2P Res: 893 mmboe 2P Res: 2,345 mmboe 1P/2P
1 2 Ratio
‘18 Prod: 203 mboe/d ‘18 Prod: 252 mboe/d 82%
35%
2.6 3
Latin America Middle East & North Africa (MENA)
65% 35%
4 2P Res: 268 mmboe 2P Res: 201 mmboe
3
‘18 Prod: 74 mboe/d ‘18 Prod: 60 mboe/d
3.7 2 2.9
2
3.0 6.3 3
34%
66%
€6.3bn €3.6bn €1.2bn 1P 2P 2C 2P+2C
2018 PF Sales Revenues 2018 PF EBITDAX 2018 Free Cash Flow4
1 RESERVES TO PRODUCTION RATIO (OR RESERVES AND RESOURCES TO PRODUCTION RATIO, WHERE APPLICABLE).
2 93% AUDITED BY EXTERNAL AUDITORS. 3 NOT EXTERNALLY AUDITED. 4 AGGREGATED NUMBER FOR WINTERSHALL AND DEA.
PAGE 5
COMPANY INTRODUCTION AND STRATEGY
WINTERSHALL DEA MERGER
SHAREHOLDING STRUCTURE STRATEGIC RATIONALE FOR THE MERGER
Create the Leading European Independent
exploration and production company with
strong international operations and significant
scale
5.7% 67% (33% Increase competitiveness and future viability
(72.7%) (27.3%)
Create value through additional growth
opportunities and realization of €200m p.a. of
synergies by year 3 of the merger
Ordinary shares
Preference shares1
SOURCE: COMPANY INFORMATION.
1 PREFERENCE SHARES WILL BE CONVERTED INTO ORDINARY SHARES IN WINTERSHALL DEA NO LATER THAN 36 MONTHS AFTER CLOSING OF THE MERGER BUT IN ALL CASES BEFORE
AN IPO.
PAGE 6
COMPANY INTRODUCTION AND STRATEGY
CORPORATE STRATEGY
• Robust financial framework anchored on commitment to Baa2/BBB rating
Financial Discipline • Disciplined and prudent cash prioritisation and capital allocation framework
• Sustainable shareholder returns through the cycle
• Balanced profitable growth and sustainable shareholder distributions
Balanced Value Creation
• Portfolio renewal through focused exploration and accretive M&A opportunities
• Relentless focus on health and safety and minimising our environmental footprint
Operational Excellence
• Continuous improvement of efficiency with focus on maintaining top quartile operating costs
• Partner of choice with proven ability to forge enduring and mutually beneficial relationships
Partner of Choice
• Maintaining and growing operating capabilities
• Maintaining low carbon gas dominated portfolio
Energy Transition • Contributing to the energy transition by continuously improving carbon efficiency in all activities
• Developing a leading position in transparency on carbon footprint
PAGE 7
COMPANY INTRODUCTION AND STRATEGY
ESG FRAMEWORK
Governance Environment & Climate Protection
We are committed to doing We explore and We constantly minimize our ecological
business responsibly and produce gas and oil footprint and use resources efficiently.
creating trust through worldwide in
transparency. the most efficient
Principles and Social Responsibility
responsible way. We enforce social standards in all we do and
actively engage with our stakeholders.
Operational
Climate Diversity Value Chain
Stewardship
• 66% of our production is • ISO 14001 and 45001 • Embracing diversity and • Supplier Code of Conduct
low-carbon gas on relevant locations inclusion includes our ESG standards
Focus Areas • No routine flaring in own • Water risk assessment • Over 60 nationalities part • Sustainability para-meters
operations1 on relevant sites of inclusive culture part of supplier
• Low CO2 emission intensity • Platform recycling in • Share of >30% women in assessments
of around 11 kg/boe the north sea workforce above industry • Joint Venture Partnering
• Support of long-term average2 program
community development
Initiatives Zero Routine Flaring Methane Guiding
by 2030 Initiative Principles
1 CURRENTLY EXCEPT LIBYA DUE TO THE SECURITY SITUATION. 2 INDUSTRY AVERAGE OF 22% ACCORDING TO WORLD PETROLEUM COUNCIL (2017)
SOURCE: COMPANY INFORMATION
PAGE 8
SECTION 2
CREDIT
HIGHLIGHTS
PAGE 9
CREDIT HIGHLIGHTS
Leading European Independent Gas and Oil Company with a large and diversified portfolio
1
2 Resilience through industry leading operating costs
3 Strong partnerships with world class operators
4 High visibility on medium term profitable growth
5 Major European pipeline distribution network providing stable and highly visible cash flows
Robust financial policy underpinned by commitment to Baa2/BBB credit rating and disciplined
6
capital allocation framework
7 Highly experienced management team with strong corporate governance
The Leading European Independent Gas and Oil Company
PAGE 10CREDIT HIGHLIGHTS
1 LEADING EUROPEAN INDEPENDENT GAS AND OIL COMPANY WITH A LARGE
AND DIVERSIFIED PORTFOLIO
2018 2P RESERVES SOME OF OUR KEY ASSETS2
Liquids Gas 73% Russia
27%
• Achimov I
• 96 mboe/d
3.71 • Achimov IV & V
(bn boe) • First gas: 2020/2021
• Yuzhno Russkoye
• 150 mboe/d
2018 PRODUCTION Vega
DIVERSIFICATION
Russian • 27 mboe/d
Brent / Gas 36%
Liquids
34%
589 Mittelplate
(mboed)
• 21 mboe/d
European
Spot Gas Argentinian
Egyptian
15% Gas 11% CMA-1
Gas 4%
2018 EBITDAX3 • 51 mboe/d
OECD
71%
Ghasha Development
3.6
(€bn) • First gas: 2022
Non-
OECD
29%
SOURCE: COMPANY INFORMATION.
1 93% EXTERNALLY AUDITED. 2 2018 WI PRODUCTION. 3 PRO FORMA 2018 EBITDAX.
PAGE 11CREDIT HIGHLIGHTS
2 RESILIENCE THROUGH INDUSTRY LEADING OPERATING COSTS
PRODUCTION COSTS1 VS. PEERS2 PRODUCTION COSTS OVER TIME
(US$/BOE; THREE-YEAR AVERAGE (US$/BOE)
2016A – 2018A)
4.5
7.1
4.3
3
14A H1 19
Peer median: $8.2/boe
SOURCE: COMPANY INFORMATION. NOTE: OCCIDENTAL PETROLEUM (OXY) METRICS ARE PRO-FORMA FOR ANADARKO. ¹ PRODUCTION COSTS INCLUDE ONLY PRODUCTION RELEVANT
AND OPERATING LEASE EXPENSES. ² INCL. AKER BP, APACHE, BP, CONOCOPHILLIPS, ENI, EQUINOR, GALP, HESS, LUNDIN, NOBLE ENERGY, OMV, OXY, REPSOL, SANTOS, SHELL, TOTAL,
WOODSIDE. 3 AGGREGATED NUMBER FOR WINTERSHALL AND DEA. FOR ILLUSTRATIVE PURPOSES ONLY.
PAGE 12CREDIT HIGHLIGHTS
3 STRONG PARTNERSHIPS WITH WORLD CLASS OPERATORS
PROVEN PARTNERSHIP MODEL WITH LONG HISTORY OF OPERATIONAL TRACK RECORD
(2018 PRODUCTION SPLIT)
Production Operating in the
Country 2018, mboe/d country since Key Partners
Russia 252 1990s
Non-operated
19%
JV-operated 67% Norway 140 1970s
Argentina 71 1980s
Operated
14%
Egypt 26 1970s
Mexico 3 2017
UAE N/A Development
SOURCE: COMPANY INFORMATION.
PAGE 13CREDIT HIGHLIGHTS
4 HIGH VISIBILITY ON MEDIUM TERM PROFITABLE GROWTH
OUR MAJOR DEVELOPMENT PROJECTS AND PRODUCING ASSETS WITH FURTHER UPSIDE
Norway Russia
• Njord • Bauge (Njord area) • Achimov IV & V
• Plateau production: • Plateau production: • Plateau production:
40 mboe/d 10 mboe/d 90 mboe/d
• First oil: 2020 • First oil: 2020 • First gas: 2020/2021
• Dvalin • Nova
• Yuzhno Russkoye (Turonian)
• Plateau production: • Plateau production:
30 mboe/d 30 mboe/d • Plateau production:
• First gas: 2020 • First oil: 2021
40 mboe/d
• First gas: 2019/2020
• Ærfugl
• Plateau production:
25 mboe/d
• First oil: 2020 UAE
• Ghasha Concession
• Plateau production:
40 mboe/d
Mexico • First gas: 2022
• Zama
• FID 2021
Egypt
• Raven (WND)
• Plateau production:
Argentina (pre-FID) 30 mboe/d
• Fenix • First gas: Q4 2019
• FID 2019/2020
• Aguada Federal & Bandurria
Norte
• FID 2020
Profitable production growth to 750 mboe/d by 2023
SOURCE: COMPANY INFORMATION
PAGE 14CREDIT HIGHLIGHTS
5 MAJOR EUROPEAN PIPELINE DISTRIBUTION NETWORK PROVIDING STABLE
AND HIGHLY VISIBLE CASH FLOWS
• Major player in the non-cyclical European gas DENMARK
Baltic Sea
transportation business
North Sea Kiel Greifswal
• Midstream business consists of: Hamburg Schweri
d
Emden n
• Partly / non-regulated pipeline assets (OPAL + Nord Bacton Bremen NEL
Balgzand
Bunde
EUGAL
UNITED
Stream 1): KINGDOM Rehden
Hanover
BERLIN
Mallnow
Amsterdam
Hamel Frankfurt/
London
• Earnings independent from demand fluctuations NETHERLANDS Lippe n Q
Magdebur
g Radeland
Krefeld POLAND
Zeebrugge
Kasse Leipzig
• Significant cash flows from dividends
Dusseldorf Dresden
Cologn l STEGAL
e Erfurt
Weisweiler
Brussels Aachen Reckrod Eischleben
BELGIUM Rückersdorf Brandov
• Regulated pipeline assets (GASCADE, NEL, EUGAL5): Frankfurt Olbernha
u
Le Havre
Waldhau Prague
LUXEMBOURG
• Earnings independent from demand fluctuations on the FRANCE
Ludwigshafe
s
Nurember CZECH
n REPUBLIC
basis of regulation Paris
Stuttgar
t
g
• Fixed and reliable returns on regulated midstream Burghausen
Vienna
Munich
assets WIGA Group6 Pipeline Network
WIGA Group Compressor
Stations SWITZERLAND AUSTRIA
• Net RAB 2018 of €2.6bn2 (GASCADE, NEL)3
Wintershall Capacity In operation
Pipeline Length km
• Return on regulatory equity4: 6.91% for new systems, Dea Share, % bcm p.a. Since
GASCADE Grid1 50.0 N/A 2,400 1992
5.12% for old systems
OPAL 40.0 36 473 2011
NEL 25.5 20 441 2012/2013
• Midstream business is currently under-levered compared to
Nord Stream 1 15.5 55 1,220 2011/2012
peers, further enhancing credit capacity of the Group EUGAL5 25.3 55 480 End 2019
Over €200m p.a. of stable midstream cash flows able to cover debt service of the entire Group
SOURCE: COMPANY INFORMATION. 1 EXCL. EUGAL PROJECT. 2 INCLUDING THEORETICAL NET REGULATORY ASSET BASE FOR 50.5% CO-OWNERSHIP IN EUGAL DURING CONSTRUCTION PROCESS. 3 100% TRANSMISSION
OPERATOR BASIS. WINTERSHALL DEA OWNS 50.02% IN WIGA. 4 CALCULATED FOR “3RD REGULATORY PERIOD” (2018-2022), MAX. 40% EQUITY RATIO; NEW SYSTEMS: COMMISSIONED POST 2005, OLD SYSTEMS:
COMMISSIONED PRIOR TO 2006. 5 GASCADE OWNS 50.5% IN EUGAL PROJECT. 6 WIGA IS 50.02% OWNED BY WINTERSHALL DEA
PAGE 15CREDIT HIGHLIGHTS
6 ROBUST FINANCIAL POLICY UNDERPINNED BY COMMITMENT TO BAA2/BBB
CREDIT RATING AND DISCIPLINED CAPITAL ALLOCATION FRAMEWORK
FINANCIAL POLICY CASH PRIORITIZATION FRAMEWORK
Highest Priority
• Commitment to maintain a Baa2/BBB or
Capital equivalent issuer credit rating SUSTAINING CAPITAL
Structure & • Robust capital structure, targeting net debt to
Financial EBITDAX of 1.5-2.0x in the medium term
Discipline • Clear cash prioritization and capital allocation
frameworks BALANCE SHEET
Dividend • Wintershall Dea to pay dividends
policy commensurate with its Rating Target
DIVIDEND DISTRIBUTION
• FX risk to be hedged via natural hedges;
Hedging
policy • Commodity risk hedging to be considered by
exception GROWTH DEVELOPMENT CAPEX
• M&A strategy to be in line with commitment
Acquisitions towards the Rating Target
& EXPLORATION & APPRAISAL + M&A
Divestments • Pre-IPO, the company will focus its efforts on
streamlining the combined portfolio
SOURCE: COMPANY INFORMATION
PAGE 16CREDIT HIGHLIGHTS
7 HIGHLY EXPERIENCED MANAGEMENT TEAM WITH STRONG CORPORATE
GOVERNANCE
EXECUTIVE BOARD THREE-TIER GOVERNANCE STRUCTURE
Role • Responsible for overall strategy and
Executive / management
Management
Mario Mehren Board • Composed of senior management leadership
Chairman of the Board and CEO team
• Responsible for supervision of the Management
Maria Moraeus Hanssen(1) Supervisory Board
COO and Deputy CEO, EMEA Region Board
• Co-determination level of one third
Paul Smith Shareholders' • Members from both shareholders as well as
CFO Committee two observers/independents
Thilo Wieland SHAREHOLDER COMMITTEE
Board Member for Russia, LatAm and Hans-Ulrich Engel Lord Browne of Madingley
Midstream
Hugo Dijkgraaf
CTO
• Highly experienced management team with 20+ years in E&P sector Michael Heinz German Khan
on average
• Diverse and complementary background and skillset
SOURCE: COMPANY INFORMATION
1 WILL LEAVE WINTERSHALL DEA AS OF DECEMBER 31ST 2019, REPLACEMENT TO BE ANNOUNCED IN DUE COURSE
PAGE 17SECTION 3
HISTORICAL
FINANCIALS
PAGE 18HISTORICAL FINANCIALS
HISTORICAL PERFORMANCE1
PRODUCTION2 (WI, mboe/d) EBITDAX (€m)3
635
599 589
581
138 125 121 894
776
3,591
461 456 468
1,960
1,670
16A 17A 18A 2019 Guidance 16A 17A 18PF
Wintershall DEA Wintershall Dea PF
SOURCE: COMPANY INFORMATION.
12016 AND 2017 FIGURES COME FROM RESPECTIVE FINANCIALS OF WINTERSHALL AND DEA AS IS. 2 2016 TO 2018 AGGREGATED NUMBERS FOR WINTERSHALL AND DEA PRESENTED FOR ILLUSTRATIVE PURPOSES ONLY. 3 EBITDAX DEFINED AS INCOME BEFORE
TAX, INCLUDING EQUITY INCOME, FINANCING COSTS, EXPLORATION EXPENSE, DD&A AND IMPAIRMENTS, ACQUISITIONS, DISPOSALS, EXTRAORDINARY ITEMS, MINORITY INTEREST, FX GAINS AND LOSSES, PENSIONS, LOSS OR GAIN IN RELATION TO DISPOSAL
OF FIXED ASSETS.
.
PAGE 19HISTORICAL FINANCIALS
HISTORICAL PERFORMANCE1
CAPEX (€m)2 FREE CASH FLOW (€m)3
1,720 Up to 1,700
1,664
1,570
656 829
315
948
59
1,008 867
891 68 735
622
344
16A 17A 18A 2019 Guidance 16A 17A 18A
Wintershall Dea
Wintershall DEA
PF
SOURCE: COMPANY INFORMATION.
1 2016, 2017 AND 2018 FIGURES COME FROM RESPECTIVE FINANCIALS OF WINTERSHALL AND DEA AS IS. 2 EXCLUDING M&A.
3 FREE CASH FLOW (EXCLUDING ACQUISITIONS, BUT INCLUDING FINANCIAL ASSETS)
PAGE 20SECTION 4
CONCLUSION
PAGE 21CONCLUSION
CREDIT HIGHLIGHTS
Leading European Independent Gas and Oil Company with a large and diversified portfolio
1
2 Resilience through industry leading operating costs
3 Strong partnerships with world class operators
4 High visibility on medium term profitable growth
5 Major European pipeline distribution network providing stable and highly visible cash flows
Robust financial policy underpinned by commitment to Baa2/BBB credit rating and disciplined
6
capital allocation framework
7 Highly experienced management team with strong corporate governance
The Leading European Independent Gas and Oil Company
PAGE 22APPENDIX PAGE 23
APPENDIX
INTEGRATED HSEQ MANAGEMENT
HSEQ FRAMEWORK EXCELLENT SAFETY PERFORMANCE
HSEQ Leadership
Shaping HSEQ culture through own
behaviour; promoting cross-unit learning,
exchanges and collaboration; driving
2.0
cultural development. We continuously
monitor, report and audit to identify
opportunities for improvement.
Safe & Healthy Workplace 1.5
Providing a safe and healthy working
environment for all of those working on
our behalf
LTIF
1.0
Environmental Protection 0.8
HSEQ Minimising our environmental impact and
optimising our energy efficiency
0.7 0.7 0.7
Security 0.7
0.5 0.6 0.4
Identifying, understanding and managing
security risks worldwide to protect the 0.4 0.2
company, our colleagues and ensure
business continuity
0.0
Major Accident Prevention
2015 2016 2017 2018 2019 YTD
Implementing and maintaining
(1) Robust barriers for known risks
as well as (2) Practices to create
awareness for early signals. Mitigate LTIF Wintershall Dea¹ LTIF IOGP²
escalation in case of accidents
SOURCE: COMPANY INFORMATION, IOGP. NOTE: HSEQ = HEALTH, SAFETY, ENVIRONMENT AND QUALITY, LTIF = LOST TIME INJURY FREQUENCY RATE
1 PROFORMA COMBINED. 2 BASED ON IOGP (INTERNATIONAL ASSOCIATION OF O&G PRODUCERS) DATA FOR EUROPE.
PAGE 24APPENDIX
MIDSTREAM BUSINESS STRUCTURE
50.02% 100% Loan agreement for Fully Consolidated
up to €950 million
WIGA Transport Beteiligungs-
from Wintershall › WIGA Transport Beteiligungs-
Wintershall Dea Oil AG Nederland 0% GmbH & Co. KG5
GmbH & Co. KG5
Transport & Trading
99.9%2,3 B.V › W&G Transport Holding GmbH5
15.5%
W&G Transport Holding GmbH Nord Stream 2 AG › OPAL Gastransport GmbH & Co.
Nord Stream AG (CH) KG5
(80% Joint Ownership OPAL5 Project Company
› Wintershall Nederland
100%2 100%2 Transport & Trading B.V. (NL)4
OPAL Gastransport
W&G
GmbH & Co. KG5 › Wintershall Dea Oil AG
Infrastruktur Finanzierungs-GmbH
(Leaseholder OPAL)
“At-equity” Investments
100%2 100%2
› Nord Stream AG
GASCADE Gastransport GmbH
NEL Gastransport GmbH
(Grid owner + 50.5% Joint › W&G Infrastruktur
(51% Joint Ownership NEL)
Ownership EUGAL) Finanzierungs-GmbH
› GASCADE Gastransport GmbH
German Onshore Pipelines Nord Stream 1 Nord Stream 2
(Regulated / Partially / Non- Regulated) (Non-regulated) (Structured Financing) › NEL Gastransport GmbH
“At-equity” Investments Fully Consolidated
SOURCE: COMPANY INFORMATION
1 INDIRECT OWNERSHIP. 2 PROFIT & LOSS TRANSFER AGREEMENT. 3 REMAINING 0.1% SHARES ARE HELD BY WIBG GMBH (100% SUBSIDIARY OF GAZPROM GERMANIA GMBH). THESE SHARES ONLY HAVE A SHAREHOLDER’S MINIMUM VOTING RIGHTS
AND NOT GRANT ANY PROFIT PARTICIPATION RIGHTS. 4 FINANCIAL INVESTOR OF NORD STREAM 2. 5 IT IS EXPECTED THAT BY THE END OF 2019 WIGA, WGTH AND OGT WILL NO LONGER BE FULLY CONSOLIDATED IN THE GROUP’S FINANCIAL
STATEMENTS AND WILL INSTEAD BE CONSOLIDATED ACCORDING TO THE EQUITY METHOD
PAGE 25APPENDIX
HISTORICAL PERFORMANCE (CONT’D)
6m ended As at 30 June
Select Income Statement Data Select Balance Sheet Data
30 June 20191 20191
Total revenues and other operating income 2,969 Cash and cash equivalents 977
Other current assets (including trade and financial
Production and operating expenses (1,122) 2,500
receivables)
Production and similar taxes (100) Current assets 3,477
Depreciation and amortisation (794) Non-Current assets 22,325
1
Other costs (1,297) Assets 25,802
Exploration expenses (98) Current financial debt 4,250
General and administration expenses (484) Other current liabilities 1,946
Result from operating Activities (926) Current liabilities 6,196
Financial Result 2 Non-current financial debt 2,676
Result before taxes (924) Other non-current liabilities 7,263
Income taxes 68 Non-current liabilities 9,939
Net result (856) Total liabilities 16,135
Net result attributable to shareholders (884) Equity 9,667
SOURCE: COMPANY INFORMATION.
1 INFORMATION PRESENTED FOR THE GROUP AS AT AND FOR THE SIX MONTHS ENDED 30 JUNE 2019 AGGREGATES DATA FOR EACH OF WINTERSHALL AND DEA FOR THE SHORT FISCAL YEARS ENDED 30 APRIL 2019 AND FOR THE GROUP FOR THE TWO MONTHS
ENDED 30 JUNE 2019. THIS INFORMATION HAS BEEN PREPARED FOR ILLUSTRATIVE AND CONVENIENCE PURPOSES ONLY AND DOES NOT PURPORT TO REPRESENT THE GROUP’S ACTUAL PERFORMANCE OR RESULTS AT ANY HISTORIC DATE OR FOR ANY HISTORIC
PERIOD OR PROJECT ITS OPERATION OR RESULTS AS AT ANY FUTURE DATE OR FOR ANY FUTURE PERIOD.
INCLUDES A NON-RECURRING IMPAIRMENT CHARGE CAUSED BY AN ADJUSTMENT OF UNDERLYING PRICE ASSUMPTIONS IN THE CONTEXT OF THE MERGER
PAGE 26APPENDIX
UPSTREAM
PORTFOLIO
OVERVIEW
PAGE 27UPSTREAM PORTFOLIO OVERVIEW
OVERVIEW
Northern Europe Russia
Germany:
• Managing late life assets and production decline; • Participation in world-class assets starting from early
technological base with focus on EOR 1990s
Norway:
• Low-cost production supported by giant reserves base
• Current production and development area with
significant short-medium term growth and attractive • Long plateau production with significant cashflow
exploration upside in proximity to existing infrastructure generation
• Exploration: Focus on value creation in the vicinity of
operating fields and infrastructure • Long-term contractual offtake agreements (Yuzhno
Rest of Europe: Russkoye)
• Shallow water operations focusing on production
optimization
Latin America
Mexico: Middle East and North Africa
• Mature onshore oil production and participation in one Egypt:
of the world’s largest shallow-water discoveries • Long history in the region with stable production even
• Exploration: Major exploration opportunity in recently during past political unrest
acquired blocks UAE:
Brazil: • Future of the Middle Eastern new production following
• Exploration: Participation in offshore exploration the acquisition of the Ghasha concession, highly promising
licenses in one of the most attractive hydrocarbon gas and condensate offshore development project
provinces aiming to build a significant resource base Algeria:
• Participation in the gas development project in the
Argentina: Sahara with challenging geological and logistical
• Established operations in onshore and offshore fields demands
Libya:
• History of stable production interrupted by current
geopolitical issues
SOURCE: COMPANY INFORMATION
PAGE 28UPSTREAM PORTFOLIO OVERVIEW
MAJOR PRODUCTION CENTRES
Norway Russia
2018 Production: 140 mboe/d 2018 Production: 252 mboe/d
Germany
2018 Production: 54 mboe/d
Egypt
Argentina
2018 Production: 26 mboe/d
2018 Production: 71 mboe/d
SOURCE: COMPANY INFORMATION
NOTE: 2P RESERVES AND PRODUCTION FIGURES ON W.I. BASIS, AS OF FY18.
1 OTHERS INCLUDES ALGERIA, DENMARK, LIBYA, MEXICO, NETHERLANDS, UNITED KINGDOM.
PAGE 291
UPSTREAM PORTFOLIO OVERVIEW
RUSSIA
GIANT, LONG LIFE GAS PRODUCING FIELDS UNDERPINNING CASH FLOW
GENERATION
KEY HIGHLIGHTS ASSET LOCATIONS
• Long history of Wintershall Dea’s presence in Russia (since the 1990s)
• Close cooperation and partnership with Gazprom Severneftgazprom JV
• Yuzhno Russkoye
• Strategic assets for Russia as these are key fields for Russian gas
exports to Europe Norway
Achimgaz JV
• Achimov I
Achim Development JV Urengoy
Achimov I and Achimov IV & V Finland • Achimov IV & V
Estonia Saint Petersburg Russia
• Urengoyskoye producing since late 1970s Latvia Wolgodeminoil JV
Moscow
• Achimov I producing since 2008 with estimated project duration of c. Belarus • Area I, II & IV
40 years
Ukraine Kazakhstan
• Achimov IV & V aim to develop further formations of the 1,000
Urengoyskoye field Georgia km
Wintershall Dea key assets
Yuzhno Russkoye OVERVIEW OF KEY ASSETS
• Stable contractual arrangements linked to the regulated Russian
domestic market price as well as to the European netback price Prod. FY18
Key assets WI (%) % Gas (mboe/d) Operators
• Average cost of supply of $1/boe, with attractive cash flow
generation and no significant further capex required Key producing assets
Achimov I 50% 70% 96 JV (Gazprom, Wintershall Dea)
• Significant upside from phased Turonian development and
exploration Yuzhno Russkoye 35%² 100% 150 JV (Gazprom, Wintershall Dea, OMV)
Other 6
Total Producing 88% 252
Key development projects
Achimov IV & V 25% FP: 2020 JV (Gazprom, Wintershall Dea, OMV)
SOURCE: COMPANY INFORMATION
¹ BY REMAINING COMMERCIAL GAS RESERVES (BASED ON WOOD MACKENZIE). 2 ECONOMIC ENTITLEMENT
PAGE 302
UPSTREAM PORTFOLIO OVERVIEW
NORWAY
TOP 10 POSITION IN AN ATTRACTIVE OECD REGION
KEY HIGHLIGHTS ASSET LOCATIONS OVERVIEW OF KEY ASSETS
• Europe’s largest oil and gas producing country 500
km
Prod. FY18
Key assets WI (%) % Gas (mboe/d) Operators
1000 m
1500 m
Barents Sea
• Stable fiscal and operating environment; low political risk
Alta Key producing assets
• Key assets include: Snøhvit Aasta
24% 100%3
UPSTREAM PORTFOLIO OVERVIEW
GERMANY AND REST OF EUROPE
PRODUCING ASSETS WITH BROWN FIELD UPSIDE
KEY HIGHLIGHTS ASSET LOCATIONS
Denmark Sweden Mid North Norway
Germany Sea High Central
Graben
Centra Mittelplate Norwegian
• Wintershall Dea is the largest oil producer in the country l
Norwegian-
North Sea
Northwest Danish Basin
Grabe Offshore UK
Hamburg • Wingate German
• Mittelplate / Dieksand – Germany’s largest oil field, with about half n
Emlichheim
Northwest Völkersen Basin
Nini
Danish
German
of all remaining German recoverable oil reserves Basin
Cecilie
North Sea
Poland Anglo-Dutch
Berlin Denmark
Netherlands
• Völkersen – Germany’s largest gas producing field Basin Eingkobing
Kassel -Fyn High
Eingkobing
Ravn
Belgium -Fyn High Horn
Germany Grabe
Elly-Luke n
United
Amsterdam
Luxembourg Kingdom
Czech
Upper The Hague Centra
Landau Republic Offshore Netherlands
Rhine • Several operated Netherlands l
Netherlands / UK / Denmark France Graben and non-operated
German
Grabe German
Molasse n North Sea
production licenses
Aitingen y
Basin
• Focused on improving production and extending field life through Wolfersberg
Belgium
technology and optimised operations remotely controlled from France
onshore (Den Helder) 200
km Switzerland
Austria 200
km
100
km Netherlands Germany
• Operator of discovered Rembrandt / Vermeer oil field; currently in Wintershall Dea licences and key assets
FEED stage: FID planned for 2020
• Operated Danish Ravn oil field brought on line in 2018 OVERVIEW OF KEY ASSETS
• Cross-border Sillimanite development first gas in 2020
Prod. FY18
• Established track record in cost effective infrastructure Key assets Country WI (%) % Gas (mboe/d) Operators
decommissioning and reuse expertise
Mittelplate Germany 100% - 21 Wintershall Dea
Völkersen Germany 100% 100% 14 Wintershall Dea
Other GE/DK/NL/UK 28
Total 44% 63
SOURCE: COMPANY INFORMATION
PAGE 324
UPSTREAM PORTFOLIO OVERVIEW
NORTH AFRICA AND MIDDLE EAST
GAS PRODUCTION WITH FIXED PRICE CONTRACTS PROVIDES STABLE
CASH FLOWS
KEY HIGHLIGHTS ASSET LOCATIONS
Italy
• All material North African assets are covered by the Investment Portugal
Spain
Italy Greece
West Nile Delta
guarantees of the Federal Republic of Germany Mediterranean Offshore
1000m
Pelagian
Basin
West Nile Delta 100m
Egypt Nile Delta
Onshore
Israel
C137
C137
Area
Area 58
Cairo
Jordan
Tunisia
Tunisia Tripoli
58
Disouq Tunisia
• West Nile Delta – Production from Taurus and Libra started in March Western Eastern
Gulf
of Saudi
Morocco
Oued
2017; Giza, Fayoum started in Feb 2019 while Raven is expected to Desert Desert Suez Arabia Mya
Basin
Cyrenaica
Basin Egypt
come on-stream by late 2019 Gulf of Suez
Reggane
Illizi-Ghadames
Basin
Illizi Sirt
Libya NC 193 & 195 Western
Libya Egypt Western Algeria Basin Basin
Desert
• Disouq – Gas field producing since 2013; awarded a neighbouring new Sahara
Reggane
Murzuq C96
C96 &&C97
C97
Basin
exploration block in onshore Nile delta Basin
LIBYA Kufrah
Algeria Basin
Mauritania
• Gulf of Suez – 2 offshore fields: Ras Budran and Zeit Bay; license
extended in March 2019 for up to additional 8 years with improved Mali
Niger
commercial terms & entitlement increase Sudan Niger
CHAD Sudan
300 300
500
Algeria km km km
Wintershall Dea licences and key assets
• Reggane – first gas achieved in December 2017 with targeted
production level of c. 8 mboe/d (net) reached in mid-2018 OVERVIEW OF KEY ASSETS
Libya Prod. FY18
• Active in Libya since 1958 Key assets Country WI (%) % Gas (mboe/d) Operators
Key producing assets
• Operator of 8 onshore oilfields Disouq Egypt 50% 95% 5 Suco²
West Nile Delta Egypt 17% 90% 11¹ BP
Middle East
Gulf of Suez Egypt 50% 27% 11 Suco²
• Successful Shuwaihat appraisal in Abu Dhabi Other 33
Total 74% 60
• Strong partnership with ADNOC
Key development projects
• Participation in Ghasha Concession (10%) Ghasha UAE 10% FP: 2022 ADNOC
SOURCE: COMPANY INFORMATION
1 RAVEN CURRENTLY DEVELOPING. 2 SUEZ OIL COMPANY – JOINT VENTURE OF WINTERSHALL DEA (50%) AND THE EGYPTIAN GENERAL PETROLEUM CORPORATION (EGPC) (50%).
PAGE 335
UPSTREAM PORTFOLIO OVERVIEW
LATIN AMERICA
ESTABLISHED POSITION IN ARGENTINA WITH A GROWING FOOTPRINT
IN MEXICO AND BRAZIL
KEY HIGHLIGHTS ASSET LOCATIONS
Nile Delta United Operated
Bolivia
Argentina Exploration
Onshore Exploration and
Brazil
States exploratio
in Mendoza 100m Venezuel n licenses
Province Paraguay in Neuquen
Production 500m Guyana
• 4th largest gas producer with operated and non-operated acreage in Province
• Aguada Pinchana Este 1000m
a
Suriname
Colombia French Guiana
unconventional Vaca Muerta and participation in 18 fields • San Roque
Gulf of Mexico
Argentina
• Gas production predominantly from Tierra del Fuego with several Exploration Ceara
producing fields in the CMA-1 concession including follow-up projects to Uruguay
• Blocks 2, 16 & 17 Basin
Potiguar
Buenos
keep plateau production (Fenix Phase I, further satellite developments) Aires Brazil Basin
Sierra
• Conventional reservoirs in Neuquén basin in the blocks Aguada Pichana Tampico- • Blocks 2, 4, 5, 7, 11, 29
Peru
Brasilia
East and San Roque NeuquenTierra del Fuego Province Misantla Bolivia
Basin Production Basin
• Carina Rio De
• Unconventional plays in Neuquén basin in non-operated blocks Aguada • Vega-Pleyade Exploration Janeiro
• Aries Mexico Campos
Pichana East and San Roque as well as operated blocks Aguada Federal Chile
• Fenix City
• Block 30 Chile Paraguay
Basin
Belize
and Bandurria Norte Magallenes Mexico Sureste Santos
Basin
Basin Basin
Production Licence Argentina
Mexico • Ogarrio Guatemala
` Partner in
Uruguay
• Sierra – in 03/2019 acquisition of six exploration and appraisal blocks 500
km
300
km
500 Buenos exploration
km Aires licenses
including the word class Zama discovery
Wintershall Dea licences and key assets
• Ogarrio – onshore oilfield in the Tabasco state; the FDP for the
redevelopment was approved in March 2019
• Block 2 (30% WI) – exploration block in partnership with operator Pemex OVERVIEW OF KEY ASSETS
(70%)
• Block 16,17 and 30 (40% WI) – three exploration licenses with operatorship Prod. FY18
awarded in March 2018 Key assets Country WI (%) % Gas (mboe/d) Operators
Brazil CMA-1 Argentina 38% 90% 51 Total
• Brazil is one of the most attractive growth regions for the oil and gas Aguada Pichana East Conv Argentina 27% 97% 19 Total
industry worldwide Ogarrio Mexico 50% 35% 3 Wintershall Dea
• Wintershall Dea participation in seven exploration licenses (four operated) Other 1
off the north and south-east coasts of Brazil with upcoming exploration Total 90% 74
activities in 2019
SOURCE: COMPANY INFORMATION
PAGE 34APPENDIX
MAJOR
PRODUCING
ASSET
SUMMARIES
PAGE 351
MAJOR PRODUCING ASSET SUMMARIES
RUSSIA
YUZHNO RUSSKOYE ACHIMOV
LARGEST PRODUCING FIELD IN WINTERSHALL DEA PORTFOLIO LARGEST FIELD IN THE WORLD AT A TIME OF DISCOVERY
Country › Russia Country › Russia
Partners¹ › Gazprom (40%), Wintershall Dea (35%), OMV (25%) Partners2 › Wintershall Dea (50%, operator), Gazprom (50%, operator)
Offshore/Onshore › Onshore Offshore/Onshore › Onshore
Gas/liquids › 100% Gas Gas/liquids › 70% / 30%
2018 WI Production › 150 (mboe/d) 2018 WI Production › 96 (mboe/d)
Start of Production › 2007 Start of Production › 2011
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• Plateau production since 2009 (one year • Achimov I produces natural gas and
sooner than planned) Severneftgazprom JV condensate from the technically complex
• Yuzhno Russkoye
Achimov formation in the Urengoy field - one
• A connecting pipeline measuring almost 120 Norway
of the largest oil, gas and condensate Norway
km connects Yuzhno Russkoye to the Siberian reservoirs in the world
Achimgaz JV
• Achimov I
pipeline network
Finland Urengoy • Achimgaz operates a largescale facility for Finland Urengoy
• Currently extracting gas mostly from separating natural gas and condensate, which Saint Petersburg
Cenomanian deposit with 142 wells Estonia Saint Petersburg Russia
now has 5 processing lines Estonia Russia
Latvia Latvia
• Production start-up from Turonian deposit Moscow
• 96 wells out of 111 in production with Belarus
Moscow
Belarus
with estimated project duration of approximately
Ukraine Kazakhstan Ukraine Kazakhstan
14 new wells in 2019 and further 121 wells in 40 years
2020-2033
Georgia Georgia
Azerbaijan 1,000 Azerbaijan 1,000
km km
Wintershall Dea Key Assets Wintershall Dea Licences and Key Assets
SOURCE: COMPANY INFORMATION.
¹ OPERATED THROUGH JV, ECONOMIC OWNERSHIP 2 OPERATING THROUGH ACHIMGAZ, A JOINT VENTURE OF WINTERSHALL DEA AND GAZPROM.
PAGE 362
MAJOR PRODUCING ASSET SUMMARIES
CMA-1 (ARGENTINA)
LARGEST GAS PRODUCING LICENSE IN THE COUNTRY
Country › Argentina
› Total (37.5%, operator),
Partners Wintershall Dea (37.5%), Pan
American (25%)
Offshore / onshore › Offshore / Onshore
Gas/liquids › 90% / 10%
2018 WI Production › 51 (mboe/d)
Start of production › 1989
CURRENT STATUS AND OUTLOOK
• Currently seven fields and five offshore platforms including the
world’s most southern one in Vega-Pleyade
• Around 20 % of the gas produced in Argentina today comes
from the CMA-1 area
• Two onshore processing plants (Cañadon Alfa & Rio Cullen) are
in operation
• Additional plant expansion project at Cañadon Alfa successfully
completed in April 2019
SOURCE: COMPANY INFORMATION
PAGE 373
MAJOR PRODUCING ASSET SUMMARIES
NORWAY
AASTA HANSTEEN VEGA
STABLE PLATEAU AND DEBOTTLENECKING STABLE PRODUCTION AND FURTHER RESERVES GROWTH
Country › Norway Country › Norway
› Equinor (51%, operator), Wintershall Dea (24%), OMV (15%), › Wintershall Dea (56%, operator), Petoro (28%), Spirit (7%),
Partners Partners
ConocoPhillips (10%) Idemitsu (4%), Neptune (4%)
Offshore/Onshore › Offshore Offshore/Onshore › Offshore
Gas/liquids › 100% Gas Gas/liquids › 50% / 50%
2018 WI Production ›3 CONTINUED
MAJOR PRODUCING ASSET SUMMARIES
NORWAY
GJØA SKARV
RELIABLE HOST PLATFORM FOR VEGA AND NOVA FILLING THE VESSEL THROUGH MATURATION OF DISCOVERIES AND
PROSPECTS
Country › Norway Country › Norway
› Neptune (30%, operator), Petoro (30%), Wintershall Dea › Equinor (36%), Wintershall Dea (28%), Aker BP (24%,
Partners Partners
(28%), OKEA (12%) operator), PGNiG (12%)
Offshore/Onshore › Offshore Offshore/Onshore › Offshore
Gas/liquids › 70% / 30% Gas/liquids › 70% / 30%
2018 WI Production › 29 (mboe/d) 2018 WI Production › 27 (mboe/d)
Start of Production › 2010 Start of Production › 2012
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• Discovered in 1989, PDO approved in 2007 • Four unitised licenses including Skarv & Idun
fields as well as Gråsel & Ærfugl discoveries
• Development comprises 5 templates with 11
production wells tied to a semi-submersible • Subsea tie-back to FPSO
production and processing facility
• Ærfugl subsea tie-back to Skarv is under
• Opex sharing from Vega – joint development development with production expected to
start in Q4 2020
• Gjøa P1 project (drilling of 3 new wells)
sanctioned in February 2019 and approved in • Optimization of gas blow down ongoing
June 2019; expected to come on-stream in Q1
2021
• Nova and Duva as future tie-backs
SOURCE: COMPANY INFORMATION.
PAGE 393 CONTINUED
MAJOR PRODUCING ASSET SUMMARIES
NORWAY
EDVARD GRIEG MARIA
OUTSTANDING PERFORMANCE AT LOW COST RESERVOIR MANAGEMENT AND RECOVERY IMPROVEMENT
Country › Norway Country › Norway
Partners › Lundin (65%, operator), OMV (20%), Wintershall Dea (15%) Partners › Wintershall Dea (50%, operator), Petoro (30%), Spirit (20%)
Offshore/Onshore › Offshore Offshore/Onshore › Offshore
Gas/liquids › 10% / 90% Gas/liquids › 10% / 90%
2018 WI Production › 15 (mboe/d) 2018 WI Production › 12 (mboe/d)
Start of Production › 2015 Start of Production › 2017
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• Discovered in 2007 and came on-stream in • Multiple host subsea tie back with production
November 2015 to Kristin, water injection from Heidrun and
gas lift from Åsgard B via Tyrihans
• 14 wells development program successfully
completed in 2018 resulting in rd. 50% increase • Initial performance and reserves below
of the ultimate reserves recovery compared expectations due to unexpected (i) sealing silt
to PDO layers disconnecting injection and production
wells and (ii) lack of faults which should have
• Strong reservoir performance supports low broken up possible sealed layers
operating cost
(4 USD/boe) • 2 infill wells to be drilled in 2019 to improve
pressure support and recovery
• Development plan for the Solveig oil field (tie
back to Edvard Grieg) submitted for approval • Maria Phase II initiated for further recovery
• Further infill drilling planned after 2020
SOURCE: COMPANY INFORMATION.
PAGE 404
MAJOR PRODUCING ASSET SUMMARIES
EGYPT
WEST NILE DELTA GULF OF SUEZ
EFFICIENT USE OF THE EXISTING OFFSHORE INFRASTRUCTURE OWN FACILITIES TO TREAT, PROCESS, HANDLE AND SHIP OIL AND GAS
Country › Egypt Country › Egypt
› SUCO (operator Ras Budran and Zeit Bay); EGPC (50%);
Partners › BP (82.75%, operator), Wintershall Dea (17.25%) Partners1
Wintershall Dea (50%)
Offshore/Onshore › Offshore Offshore/Onshore › Offshore
Gas/liquids › 90% / 10% Gas/liquids › 30% / 70%
2018 WI Production › 11 (mboe/d) 2018 WI Production › 11 (mboe/d)
Start of Production › 2017 Start of Production › 1983
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• First IOC-operated production asset in Egypt, • Successfully developed to produce more than
with no traditional joint venture operation and 650 MMboe of crude oil since 1983
cost recovery structure
• Two offshore crude legacy oil fields: Ras
• Subsea development of 5 fields Budran and Zeit Bay
• Both licenses were extended in March 2019
• Production from Taurus and Libra fields
and have a renewal option in three years for a
started in March 2017, followed by Giza and
further five years.
Fayoum fields in Feb 2019
• Raven is expected to come on-stream in late
2019
• Large number of attractive ILX (infrastructure
led exploration) candidates
SOURCE: COMPANY INFORMATION.
¹ SUCO: JOINT VENTURE OF WINTERSHALL DEA (50%) AND EGPC (50%) OPERATING VIA SERVICE AGREEMENT WITH DISOUCO (JV WITH EGAS).
PAGE 415
PRODUCTION PORTFOLIO
GERMANY
MITTELPLATE VÖLKERSEN
WORLD-CLASS ENVIRONMENTAL PERFORMANCE MAINTAINING PRODUCTION LEVEL VIA ADDITIONAL SIDETRACKS
Country › Germany Country › Germany
Partners › Wintershall Dea (100%, operator) Partners › Wintershall Dea (100%, operator)
Offshore/Onshore › Offshore/onshore Offshore/Onshore › Onshore
Gas/liquids › 100% Liquids Gas/liquids › 100% Gas
2018 WI Production › 21 (mboe/d) 2018 WI Production › 14 (mboe/d)
Start of Production › 1987 Start of Production › 1994
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• Largest and most productive oil field in • Gas field with the highest 2018 gas production
Germany delivering more than 50% of in Germany (12% of the domestic gas
domestic oil production production)
• Extended reach drilling (ERD) from platform • Production from Rotliegend reservoirs in
and onshore depths of around 5,000 meters; main producer
Havel sandstones
• Highest environmental protection and safety
standards anywhere in the world • Development consists of eight drilling sites
and 18 production wells
• Further development of reservoirs to the
South of the artificial island under way
SOURCE: COMPANY INFORMATION.
PAGE 42APPENDIX
DEVELOPMENT
PORTFOLIO
PAGE 431
DEVELOPMENT PORTFOLIO
NORWAY
NJORD ÆRFUGL
ONGOING RE-DEVELOPMENT AIMING FOR ANOTHER 20 YEARS OF SUBSEA DEVELOPMENT PROJECT TYING BACK TO SKARV
PRODUCTION FROM 2020
Country › Norway Country › Norway
› Wintershall Dea (50.0%), Equinor (27.5%, operator), › Equinor (36%), Wintershall Dea (28%), Aker BP (24%,
Partners Partners
Neptune (22.5%) operator), PGNiG (12%)
Start of Production › 2020 Start of Production › 2020
Development Concept › Floating steel platform and storage vessel Development Concept › Subsea tie-back to Skarv FPSO
Plateau Production › 40 (mboe/d) Plateau Production › 25 (mboe/d)
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• Developed with a floating steel platform, • PDO approved in April 2018
Njord A, which has an integrated deck with
drilling and processing facilities • Development planned to be completed in two
phases:
• Field shut down from 2016 to 2020 due to
extensive upgrades of the platform Njord A • Phase 1 with 3 production wells to start
and the storage vessel Njord Bravo in late 2020
• Njord A column top extensions installed and • Phase 2 incl. debottlenecking studies of
welding near complete the gas processing facilities ongoing to
accelerate start from 2023 to 2021
• Njord B refurbishment work started in July
2018 and is on schedule at the Aibel yard in • High activity on engineering and fabrication of
Haugesund subsea system structure, the wellheads and
the Xmas tree system
SOURCE: COMPANY INFORMATION.
PAGE 442
DEVELOPMENT PORTFOLIO
NORWAY
DVALIN NOVA
OWN-OPERATED GAS FIELD TO BE TIED INTO EXISTING HEIDRUN PLATFORM SELF-OPERATED DISCOVERY TO BE CONNECTED TO THE NEAR FIELD
INFRASTRUCTURE
Country › Norway Country › Norway
› Wintershall Dea (55%, operator), Petoro (35%), Edison › Wintershall Dea (45%, operator), Capricorn (20%),
Partners1 Partners1
(10%) Spirit (20%), Edison (15%)
Start of Production › 2020 Start of Production › 2021
Development Concept › Subsea tie-back to Heidrun Development Concept › Subsea tie-back to Gjøa
Plateau Production › 30 (mboe/d) Plateau Production › 30 (mboe/d)
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• Planned as subsea tie back to Heidrun • The project consists of 2 subsea templates
tied-back 17 km to the Gjøa semi-submersible
• Start of offshore operations in Q2 2018 with platform
successful lifting of the H25 module onto
Heidrun, installation of subsea template on • PDO approved in September 2018
seabed and gas export pipeline completed
• Production start planned in 2021
• Drilling of 4 production wells to start in Q3
2019 • Project progress on schedule with the
installation oft the subsea pipelines and
• First gas planned in 2020 umbilicals completed in August 2019
SOURCE: COMPANY INFORMATION.
PAGE 453
DEVELOPMENT PORTFOLIO
UAE & RUSSIA
GHASHA (UAE) ACHIMOV IV & V ASSET (RUSSIA)
LARGEST GAS AND CONDENSATE FIELDS HUB YET TO BE DEVELOPED NEXT MILESTONE IN THE SUCCESSFUL DEVELOPMENT OF ACHIMOV
IN UAE FORMATION
Country › UAE Country › Russia
› ADNOC (60%, operator), Eni (25%), Wintershall Dea
Partners Partners1 › Gazprom (75%), Wintershall Dea (25%)
(10%), OMV (5%)
Start of Production › 2022 Start of Production › 2020/2021
Development Concept › 3 Main Development Hubs Development Concept › Onshore gas and condensate production via pipelines
Plateau Production › 40 (mboe/d) Plateau Production › 90 (mboe/d)
CURRENT STATUS AND OUTLOOK CURRENT STATUS AND OUTLOOK
• Dalma Hub with three fields for gas • Gas and condensate production from the
Severneftgazprom JV
production starting in H2 2022 – tie back into technically and geologically complex Achimov • Yuzhno Russkoye
existing onshore gas processing facilities formation (~3650 m TVD) Norway
Achimgaz JV
• Planned plateau production of 40 mboe/d to • 1st construction phase started in 2018 with 40 • Achimov I
be reached in 2025 production wells
Finland Achim Development JV Urengoy
• Achimov IV & V
• Ghasha-Hail Hub with two field ultra-sour gas- • 2nd construction phase will include 108 Estonia Saint Petersburg Russia
condensate development – dedicated production wells Latvia
Moscow Wolgodeminoil JV
offshore & onshore processing facilities – Belarus
• Area I, II & IV
production start planned for 2024 Kazakhstan
Ukraine
100 km
• Deep Gas Hub with two fields for gas
production starting in 2025 – tie back into Georgia
Azerbaijan 1,000
existing facilities – concept select ongoing km
Wintershall Dea Key
Assets
SOURCE: COMPANY INFORMATION.
¹ OPERATING THROUGH ACHIM DEVELOPMENT, A JOINT VENTURE OF WINTERSHALL DEA AND GAZPROM.
PAGE 464
DEVELOPMENT PORTFOLIO
FENIX (ARGENTINA)
UNLOCKING FURTHER RESERVES AND OPTIMIZING RECOVERY
Country › Argentina
› Total (37.5% operator),
Partners Wintershall Dea (37.5%), Pan
American (25.0%)
Start of production › 2022
› Installation of an offshore
Development concept platform and pipeline to adapt
onshore facilities
Plateau Production › 15 (mboe/d)
CURRENT STATUS AND OUTLOOK
• CMA-1 Follow-Up development (Fenix Phase I) is scheduled to
maintain the CMA-1 gas production plateau
• The planned scope includes the installation of an offshore
platform, drilling three horizontal wells, laying 24" 72 km
multiphase pipeline to onshore plant, adapt onshore facilities
• Final investment decision planned in 2019
SOURCE: COMPANY INFORMATION
PAGE 47APPENDIX
EXPLORATION
PORTFOLIO
PAGE 48EXPLORATION PORTFOLIO
MAJOR CENTRES Current Portfolio:
Norway
• Holds 37 exploration licenses (excluding
producing assets and protection acreage), of
Mexico which 13 are operated
Planned Activities:
Current Portfolio:
• In 2019 and 2020, the Group plans to drill up to
• 10 exploration blocks
10 exploration and appraisal wells and plans
• Includes Zama discovery
to participate in upcoming bidding rounds
Planned Activities:
• Further exploration activities in existing
blocks
Egypt
• About 10 committed and non-committed
wells in 2019-2020, all non-operated Current Portfolio:
• No further bid rounds expected in the short- • Review exploration potential within
medium term due to regulatory changes West Nile Delta concessions
• Exploration potential in onshore Nile Delta
Block 10
Planned Activities:
Brazil • Looking for partners to join Block 10, for
upcoming exploration drilling campaign
Current Portfolio: • Planned participation in upcoming bidding
• 7 exploration licences in the following basins: rounds
Ceara (1x operated), Potiguar (3x operated),
Campos & Santos (3x) Rest of the World
Planned Activities:
Current Portfolio:
• Acquisition and interpretation of 3D seismic
• Wide range of operated and non-operated exploration licenses with limited material
data ongoing
scope in Germany, Denmark, Netherlands, Russia, Argentina
• Looking for partners to join operated licenses
Planned Activities:
• Active screening of further opportunities
• Portfolio evaluation ongoing
• Planned participation in upcoming bidding
• Recent award of two exploration licenses offshore Argentina (Malvinas basin)
rounds
• Planned participation in upcoming bidding rounds, e.g. Abu Dhabi
2019 2020
Toutatis Gullstjerne Balderbra Appraisal Dvalin North
Yaxchilan (drilling) Polok Block 30
Other Sillimanite South (UK) Vibe (DK) Ganna (EY)
SOURCE: COMPANY INFORMATION
PAGE 49DEFINITIONS
• Capex (excluding M&A) for the Group consists of payments for intangible assets, property, plant and equipment and
CAPEX
investment property
• EBITDAX defined as income before tax but adjusted for the following items: financing costs, exploration expense, DD&A
EBITDAX and impairments, acquisitions, disposals, extraordinary items, minority interest, FX gains and losses, pensions, loss or
gain in relation to disposal of fixed assets
• Free cash flow for the Group comprises the cash flow from operating activities and the cash flow from investing
Free cash flow
activities but excludes payments for acquisitions
FID • Final Investment Decision
Production costs • Production costs include G&A allocation but exclude export and processing tariffs, finance items and R&D
RCF • Revolving credit facility
Realized oil /
• Includes hedges and physical forward sales
gas price
WI • Working Interest, net to Wintershall Dea
RAB • Regulatory Asset Base
Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments
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