German duo Wintershall Holding and DEA Deutsche Erdoel AG (DEA) have completed the merger of the two companies creating a European independent gas and oil giant.
The merger agreed in September last year has been completed in on May 1 following the approvals by all relevant authorities, and shareholders BASF and LetterOne, the company said in a statement.
Commenting on the merger, Mario Mehren, chairman of the board of directors and CEO of Wintershall Dea, said, “We are a European champion and are making an important contribution to Europe’s energy security.”
In 2018, pro-forma hydrocarbon production of Wintershall and DEA together was 215 million barrels of oil equivalent (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.
Based on existing exploration and production projects, the company is on track to reach daily production of 750,000 to 800,000 BOE between 2021 and 2023.
This is equivalent to an annual production growth rate of 6 percent to 8 percent. Growth is expected to come from both the existing portfolio and new production regions.
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.