One of Germany’s leading upstream players, Wintershall, is looking to significantly boost its sizeable overseas operations, with renewed emphasis on the UAE and the broader MENA region, as Martin Bachmann, Executive Board Member, told Pipeline Magazine
Do you see Wintershall’s output returning to pre-war levels by July this year?
The daily production has now reached approximately 60,000 barrels and we want to stabilise our production capacity at this rate in 2012. To do this, however, the export infrastructure also needs to be in place. At the moment, it is not possible to say when the maximum daily production capacity will be reached.
In view of the political situation, in February 2011 we suspended and sealed off production operations in the Libyan Desert for safety reasons. We can only express our deep gratitude to our staff in Libya. For us in Europe it is difficult to imagine what it was really like to live there in these months and look after our company there as they did.
Can you provide any insight into Wintershall’s future in Libya, working with the new government?
Just recently at a meeting with the new Libyan Prime Minister Abdurahim el Keib, he expressly welcomed our willingness to invest in developing the oil industry and thus its affiliated infrastructure. Thanking Wintershall for the humanitarian aid that we provided, the Prime Minister also said: “Wintershall has been in Libya for many years. As a partner, your company has demonstrated a very humanitarian side in these historical times.”
Wintershall plans to continue to be an investor in Libya. The Transitional National Council and the Libyan National Oil Company has confirmed on several occasions that it intends to respect the existing agreements.
With investments of more than two billion US dollars and over 150 wells sunk, we are one of the largest oil producers in Libya. Wintershall has been active in the exploration and production of oil in the country since 1958 and we have earned a good reputation in Libya over the years.
What are your 2012 growth plans in the MENA region?
Wintershall is already a respected operator in the region, working in partnership with the strong NOCs in the region. In Qatar, Wintershall has an operating office and is currently actively exploring Block 3 and Block 4N.
In Abu Dhabi, we have opened a branch office for new business development activities, from which we will seek to build on our relationships throughout the region. In May 2010 a memorandum was signed with the Abu Dhabi National Oil Company (ADNOC), which allows Wintershall to conduct appraisal and development of a deposit in the western region of the Emirate. We will be further expanding these activities.
Can you provide any insight into ADNOC’s renewing or awarding of new concessions for those that are expiring in 2014?
Wintershall’s involvement in the UAE already stretches back over several decades, with activities in Dubai, Ras Al Khaimah and Sharjah. We now also want to be more actively involved in long-term upstream projects in the Gulf Region.
In May 2010, Wintershall Holding GmbH signed a Memorandum of Understanding with ADNOC on possible joint exploration and development of a gas and condensate deposit in Abu Dhabi. We are currently in negotiations to finalise an agreement in order to start operations there.
This is only the first project on the path towards a long-term cooperation in the upstream energy sector between Germany and the emirate. Our target is to have a portfolio of projects in the UAE and other countries in the Middle East.
What’s next in your Qatar operations? Can you update us on your PSA exploration programme in Block 4N - any discoveries so far?
In 2010 the first exploration well was drilled in the western part of exploration block 4N in Qatar, together with partner Mitsui, who has a 20 per cent stake.
The results of the well are still under evaluation, and the PSA contract has been extended for another 18 months.
During this period, Wintershall will drill a second exploration well, with the future program to be determined once the results of both wells is evaluated. Wintershall is also operator for offshore Block 3, which was awarded in 2007, and is actively exploring the area together with its partners, the Japanese company Cosmo Energy and Indonesia’s Pertamina. A 3-D seismic survey was carried out in mid 2010, which is still being evaluated.
Wintershall is known for its innovations in production technologies – what are your key technologies already creating value for major national operators here?
Wintershall specifically has in-depth experience in developing tight gas and sour gas deposits and in successfully applying IOR and EOR techniques to mature fields.
We conduct our own research and development projects in selected technological fields, with a focus on reducing risks involved in exploration, attaining higher yields and developing technologies for deposits located within difficult environments.
The largest research project which we are working on, together with BASF, our major shareholder and the world’s largest chemical company, is the biopolymer schizophyllan. This project focuses on the fungus, which generates a biopolymer as it grows. This can then be applied as an entirely organic thickening agent, thus opening up new prospects for EOR.
While most of the world’s independents and leading NOCs are seeking to enter Iraq, why did Wintershall hold back on pushing into Iraq in recent years?
Out of a group of 120 companies, Wintershall and 41 other companies were qualified by the Iraqi state to take part in a license bidding process. For strategic reasons, the BASF-subsidiary decided not to bid for the licenses offered in the first round. Wintershall will actively examine future opportunities for participation in the country.
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