MAZ 0315 EN (PDF)

WINTERSHALL
INFORMATION
ISSUE NO. 3 / OCTOBER 2015
MAGAZINE FOR EMPLOYEES AND FRIENDS OF THE COMPANY

Virtual
3-D models help
understand reservoirs
Financial
Major check-up for
investments and costs
Cultural
How foreign languages
turn up in dreams

Digging deeper
with the boss
Iran, Brazil, magic fish: Mario Mehren
answers your questions

CONTENTS

INTRODUCTION
WINTERSHALL
MOMENT

Dear
colleagues,

Silent
high flyer

DISCOVER
MORE

+

The people behind the stories
LANGUAGE LESSON

As part of his traineeship
at BASF, Timo Breiner
also completed a spell
with our editorial team. In
helping to write the story
about language diversity at
Wintershall, he improved his
foreign-language vocabulary
a little. Now he can also say
in Arabic, “I want to produce
oil and gas here.”

2 WINTERSHALL INFORMATION 03 / 2015

SIBERIA: AN ADOPTED
HOME

The photographer Boris
Velikov took some ­pictures
for us of the facilities at the
Yuzhno Russkoye gas field
in Siberia – this time in the
summer. Boris knows the
region well. He's lived in
Novy Urengoy, a three-hour
drive away, for more than
20 years.

ENCOUNTER

Sophie ­Pornschlegel met
female Arab students from
the Petroleum ­Institute in
Abu Dhabi on their study
tour of G
­ ermany, which was
sponsored by W
­ intershall.
She ­interviewed Shamma Al Qaissieh and was
­impressed with her i­nterest
in the industry.

Photos: Cover: C3 Page 2–3: Christian Burkert (3), Sammy Naas, Boris Welikow, Frank Schinski / Ostkreuz (2), Justin Jin, Shutterstock

GERMANY Wintershall’s hot-air balloon has
been conquering the skies over Germany
since this spring. It’s already taken off at
various locations in the north, south, and
west of the country. Wherever it goes, it
receives an enthusiastic welcome and lots
of photos are taken. The balloon gives the
people who ride in it a unique look at the
countryside below them. Many e
­ mployees
have already taken the o
­ pportunity to have
a bird’s-eye view of the place where they
live and work.

Truly, Mario Mehren
has not taken over
the helm of
Wintershall in easy
times. Yet everyone
wants to know, where
does Wintershall go
from here?
For him, that’s
a good reason and
incentive to address
questions on the minds
of the company’s
­employees. Whether
they come from Brazil,
Iran, or Libya, in our
cover story he answers
the questions we asked
you to submit in the
last issue. And that will
surely inspire you to
ask at your location:
Where can we
improve?
I wish you an
enjoyable read!

14
24

32

04

Cover Story

Oil & Gas

Panorama

P.4  DIALOGUE

P.18  YUZHNO RUSSKOYE

P.28  AGENDA

Production from the gas field
enters a new phase

Must haves: Wintershall to click,
or hang over your shoulder

P.20  IRAN

P.30  SOUVENIRS

Employees ask,
Mario Mehren answers

Five things you now need to
know about Iran

Research & Technology
P.10  VIRTUAL

3-D reservoir models help
decision-making

What colleagues bring back
from their travels

P.22  WORLDWIDE

Profitable production even
when prices are low

Paternoster
P.32  WINNERS

Karina Kastens and Adrián
Muiño on their first visit to
Siberia

Working Life

Company

P.24  LANGUAGES

Insiders tells us about pitfalls
and their favorite words

P.14  ASSET SWAP

Details of the Gazprom
agreement at a glance
P.16  GUEST ARTICLE

Alexej Miller marks the 25th
anniversary of the partnership
With this
postcard to Mario
Mehren, Karina
and Adrián said
Thanks.

P.17  CITY TIP

Novy Urengoy is exciting
and diverse

STEPHANIE RADDATZ,
EDITOR-IN-CHIEF

WE WOULD LIKE TO
HEAR YOUR OPINION!

+

Do you have suggestions, praise, criticism?
Write to us at redaktion@wintershall.com. If you prefer
to phone, please call + 49 (561) 301-1308
03 / 2015

WINTERSHALL INFORMATION

3

COVER STORY

COVER STORY
The focus in the coming
months, for me personally and
for the whole of ­Wintershall,
will be to get us into shape
for the volatile e
­ nvironment
in which we operate. I
want to ensure that we’re
­economically successful in
the face of these conditions.

On oil prices, Iran,
and the magic fish

I also intend to put a ­greater
focus on the importance
of HSE. The current trend
in this regard is cause for
concern. We’ve already had
far more lost-time a
­ ccidents
than in the whole of last
year. There were also
incidents that did not result
in accidents only thanks to
fortunate circumstances.
HSE must remain the most
important issue for all
colleagues.

Interview Questions deserve answers. Many employees responded to the appeal in the last issue of
Wintershall Information, and sent their questions to the new Chairman of the Board of Executive Directors.
Mario Mehren responds.

TORSTEN KAMPS

Senior Geologist, Rijswijk

Photos: Frank Schinski / Ostkreuz, private

Looking at the figures published in BASF’s half-year
report, we are (still) assuming an average oil price of $60
to $70 a barrel for the year. Yet the average oil price is
­below that figure. Do you believe this scenario is correct?
What oil price scenario do you envisage? What do you
think will be the impact on Wintershall if the oil price
continues to fall?

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WINTERSHALL INFORMATION

03 / 2015

Forecasting prices is very difficult in the current volatile environment.
It’s therefore correct to define a price range. We were within that
band over large stretches of the current year. On average, we’ve
been a little below it so far. What’s more important for Wintershall
than price forecasts is for us to get ourselves into shape to tackle this
volatile environment. We have to show that we can be economically
successful even in times of low prices. To do that, we have to keep
costs under control, optimize our production, and accomplish our
projects efficiently and effectively.

03 / 2015

WINTERSHALL INFORMATION

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COVER STORY

COVER STORY

ARNE KUPETZ

MARJA KRÖGER

SVEIN
ILDGRUBEN

Specialist at Shareholder Services, Kassel

Government Relations Manager, Stavanger

Why do we need
a sustainability
strategy? What do
we hope to gain
from it?

How long do you see
Norway continuing to be a
core organic growth area
for Wintershall globally?

Geologist, Barnstorf

We’d like to know who
took the decision to
withdraw from Brazil and,
above all, the reasons for
doing so.

The E&P industry in particular comes under repeated criticism as a risk to the
environment and climate. Very often unjustly. It’s therefore important to show
that we at Wintershall shoulder our responsibility and also help solve global
challenges. We already do a lot. Think of our no-flaring policy, or our
innovative concepts for efficient and safe production. But a sustainable
approach is more than that. It takes into account social aspects as well as
economic and ecological ones. With our social commitment in the fields of
education and health, we want to foster positive development in our core
regions. The goal of our sustainability strategy is to give a clear direction and
framework to what we do. That’s not only important for our social acceptance
and our license to operate, but will also have a positive impact on our
economic success. By the way, rollout of the strategy will commence soon.
We haven’t withdrawn from Brazil. We’ve merely decided not to take part in
licensing rounds or to pursue concrete acquisition projects in Brazil at the
moment. The decision came as a disappointment to our colleagues in the Brazil
team, who have done an excellent job. I understand that. However, it’s the right
decision given the turbulent political and economic situation in Brazil at present,
and the sharp fluctuations in oil and gas prices. However, we’ll still keep our
sights on Brazil. I’m sure it’s only a pleasure deferred, as they say. After all, Brazil
is and will remain a country with large resources and interesting opportunities
in one of our core regions.

MARINUS ELENBAAS
What is Wintershall’s view and strategy
on securing opportunities in Iran, now
that sanctions may soon be lifted?

We’re keeping a very close watch on the situation
in Iran. For some time now, a team of colleagues in
Abu Dhabi and Kassel have been analyzing potential
assets for entering the Iranian market, as well as the
parameters that are currently being defined by the
Iranian government. Together with Martin Bachmann,
I recently visited Tehran, and was able to speak with
the Oil Minister and head of the NIOC. The message
we received was a clear one: German companies
including Wintershall – especially in tandem with BASF
– are very welcome, and Iran with its large oil and gas
reserves is of great interest for Wintershall. However,
the sanctions first have to be lifted, and the new
parameters presented. Only at that point will we know
whether there are also interesting commercial
­opportunities for Wintershall in Iran.

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WINTERSHALL INFORMATION

03 / 2015

Photos: Frank Schinski / Ostkreuz (5), private (2), Thor Oliversen, Christian Burkert, Sammy Naas

Senior Drilling Engineer, Abu Dhabi

YUSRI SHEBANI
Senior Financial Controller, currently Kassel

Norway is an important growth region
for us. However, for some time now we
haven’t had any fixed budgets or quotas
for exploration at the individual OPCOs,
but rather a global portfolio and budget
controlling. All the exploration projects
in our portfolio are ranked, with the best
ones being implemented and allocated a
budget. WINO will therefore receive a large
share of the global exploration budget
for as long as enough good projects
are presented.

Since there are almost
no more activities and
production in Libya, are
there any plans to send
the Libyan staff to
other OPCOs in order
to develop and improve
their skills?

We already have a host of Libyan
colleagues who are g
­ athering,
or have gathered, ­experience at
headquarters or the OPCOs. We’ve
also held further training measures
for some colleagues. We’ll continue
doing that wherever it’s feasible
and sensible. However, it would be
better if our colleagues were able to
develop their skills further as part of
restarting production and operating
the facilities at our concessions
C96 and C97.

03 / 2015

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COVER STORY

MANAL ABOUJTILA
HR Manager, Tripoli

MARK LEWIS

JORGE PONCE

Communication Specialist, Stavanger

Unconventional Completion & Stimulation Team Leader, Buenos Aires

At what point will Wintershall give up
its activities in Libya, if a situation
continues where we can only produce
for two to three months a year?

New employees share their view of things

After exactly 99 days in office, Mario Mehren met with 12 new employees in Kassel for an exchange of
views. He wanted to learn what the new colleagues thought of Wintershall. Also present: Mareike Schaller,
Assistant (left), and Verena Lappöhn from Invoice Verification and Dunning, who began their new jobs at
Wintershall on the same day as the Chairman of the Board of Executive Directors. The verdict from the
discussion: The atmosphere at Wintershall is good, but processes at the company must become even
better. You can find more information in the intranet at wintershall.net/go/fotoaktion

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03 / 2015

COVER STORY

TOBIAS
TANNERT

HSE Focal Point, Barnstorf

Acknowledging
that in every crisis
there are opportunities, is Wintershall
­considering making
new acquisitions?

We closely monitor whether there are interesting
acquisition targets for Wintershall. However, that’s no
easy undertaking due to the fluctuation in prices, since
the seller and purchaser often have very different ideas
of how prices will trend in the future. Consequently,
few transactions are being concluded at present. But
we’ll keep on the ball.

We have
projects that
are being built
locally, and
projects that
are being built
in the Far East,
such as Aasta
Hansteen. What
are the benefits
or downsides
to both of these
approaches?

Aasta Hansteen is an exciting and technologically challenging project that will make a
significant contribution to our growth objectives
in the future, and so also a good contribution
to our economic value added. There have
indeed been quality and HSE problems at
some Korean shipyards, as well as time delays.
In the case of Aasta Hansteen, we’ve therefore
­established tight monitoring of the activities in
Korea, together with the operator Statoil. That
also includes having a WINO employee on site,
and regular visits by our experts.

Wintershall Deutschland and thus Barnstorf are and will
remain our basis for technology developments and
­operational excellence. We have an excellent team and
good ideas here to compensate for the natural drop in
production. However, the political situation relating to
fracking is i­ntolerable and I very much hope that the German
­government’s regulatory package is actually adopted soon so
that the more than four-year moratorium on approvals, under
which our Düste Z10 is also suffering, finally comes to an end.
All of us need to show policymakers that we and our industry
work responsibly, secure Germany’s energy supply, and are
also a large taxpayer and important employer.

MARIA SHIPILOVA

Assistant to Managing Director, Moscow

Photos: Frank Schinski / Ostkreuz (5), private (4), Thor Oliversen

The situation in Libya isn’t easy – either for our colleagues there, or for us
as holders of the concessions. It’s true that in the past years we’ve hardly
been able to produce for more than two to three months a year. And at a
level that was at most around 40–50 percent of capacity. Nevertheless,
we’re still paying our team in Libya their full salaries. It’s difficult to tell how
long that will remain possible. However, we won’t give up our 60-year
­history in Libya without a fight. I greatly hope that the peace process in
Libya reaps success very soon so that Libya and the Libyan people again
have a promising future – and that our activities there do, too.

Where does the
­Barnstorf location go
from here? At the moment, many p
­ rojects
have been halted or
sold. If we may as well
immediately decommission Düste Z10 because
we’re not allowed to
frack there, then things
soon won’t look so
good. That makes one
wonder what’s going
to happen

In Russian fairy tales the most popular plot is
when a man catches a magic golden fish who
grants him three wishes. What would be your
three wishes if you knew they are guaranteed
to be fulfilled?

First, I’d wish that we at Wintershall would practice a culture of openness, dialogue,
and personal responsibility at all levels, units, and OPCOs. We’re definitely making
good progress in that, but we’re not where we could be. Second, I’d wish that the
crises we’re unfortunately experiencing in some of our core regions at present would
be overcome, so we could again talk more about successful partnerships and less
about conflicts. And third, it would of course be a great help to our business if oil and
gas prices were to double. By the way, Ms. Shipilova, where can I find this fish?

03 / 2015

WINTERSHALL INFORMATION

9

RESEARCH & TECHNOLOGY

RESEARCH & TECHNOLOGY
Oil saturation

One step ahead
of the future

Successful production
A comparison of 1944 with 2013 shows:
Oil saturation – the ratio of oil in the reservoir –
has fallen as expected in 70 years of production.
However, an end to production is far away.

Reservoir modeling “There’s darkness in front of the pick” – this old German miners’
saying remains true to this day. Yet the specialists at Wintershall give their all to simulate
the subsurface in 3-D models, and thus predict output as accurately as possible.

The wells
The dynamic model
indicates the production
wells that are active
today.

Katrin Rausch

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WINTERSHALL INFORMATION

03 / 2015

fixed characteristics of the subsurface and
they don’t change, or only change insignificantly, as a result of oil and gas production.
They therefore form the basis for static reservoir models that are made by geologists,”
explains reservoir engineer Calogirou.
The amount of oil in a reservoir, among
other things, is determined by the rock’s
water and oil saturation. These are parameters that change over time. The oil content
decreases as a result of production, whereas the proportion of water in the pores
increases. Properties such as pressure or
temperature also change. If such variables
are included in the 3-D images, the experts
talk of dynamic models. Only these models
can visualize changes in the reservoir and
simulate production.
For example, it is possible to forecast
the total number of barrels that can be extracted from a field. However, not just one,
but three different scenarios are calculated: P50, P10, and P90. P50 is the median
and the most probable figure for the actual reserves. P10 is more optimistic and is
higher than P50; P90 is lower. Executives
and the board are therefore provided not
just with a bare figure, but a highly probable output range. If the anticipated production costs, development costs, and the oil
and gas price are also taken into account,
the result is a clear picture of a project‘s
profitability. That is why economists with
their level-headed calculating skills also
play a key role in reservoir modeling.
However, forecasts are not only created to decide whether or not a field is to
be developed. “That’s the decision with
the greatest financial consequences, since
developing a field is very cost-intensive,”
says Calogirou. However, forecasts are

SKILL
NETWORKS
STATIC
RESERVOIR
MODELING

The competence
network for
static models
at ­W intershall
comprises
ten members
from different
disciplines,
and is headed
by ­B ernhard
Siethoff.
DYNAMIC
RESERVOIR
SIMULATION

The internal
network is made
up of 12 experts
from all OPCOs.
Its coordinator
is Aggelos
Calogirou.

Temperature
Steam flooding has
an impact
While oil saturation
has fallen, there has
in some places been a
­considerable increase
in temperature over
the years. That’s due to
the 300°C water vapor
­Wintershall uses to make
the oil more fluid and so
produce more.

Changes
in Emlichheim

The dynamic model of the
Emlichheim crude oil field
­illustrates what reservoir models
can do. It shows how oil saturation
and temperature have changed in
the reservoir from 1944 to 2013.

Reservoir modeling:
The process

The process – from the initial information
to a concrete prediction of total output
from an oil or gas field – is basically always
the same, and is repeated before every
important financial decision.

1. Seismic survey
First, ­geophysicists
analyze ­seismic
data about the
structure of the
subsurface.

2. Static model
In the next stage, a model with
the invariable properties of the
reservoir, such as the rock’s
porosity and permeability, is
created.

3. Dynamic model
This shows the changes in
the reservoir as a result of
production – for example,
the reduction in the ratio
of oil or gas.

03 / 2015

Graphic C3 Visual Lab, Wintershall

W

hether it’s a flight simulator, a business game, or the
weather forecast, imitating
reality or predicting developments makes our life easier. If you know
what to expect, you can prepare for it and
take better decisions.
And that is precisely the objective
that Wintershall is pursuing with reservoir modeling. Geologists, geophysicists,
­petrophysicists, reservoir engineers, production engineers – all of them make
three-dimensional models of reservoirs. As
part of their work, they gather information
on a gas or oil field, and from that produce
virtual copies of the subsurface on a computer. These models are then used to create
forecasts for output from each field.
Those forecasts become the basis for all
investment decisions. “The board would
never take a decision on a project without
knowing how much the field could produce, and what we might earn from it,”
says Aggelos Calogirou, Head of Reservoir
Engineering at Wintershall. “Profitability
is the crucial factor. And that can only be
determined by simulating a field’s output
over its entire life cycle.”
The process from looking at the first
bit of information to predicting output is
basically always the same. The geophysicists begin by analyzing data from seismic surveys that reveal findings about the
structure of the subsurface with its different rock strata. This data and initial drilling work supply the petrophysicists with
information about the rock’s porosity and
permeability – that is, how many cavities
the rock contains, how large they are, and
how well-developed the flow paths are between the individual pores. “All those are

4. Forecast
In this way,
the total output
can be simulated
and a forecast
created.

WINTERSHALL INFORMATION

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RESEARCH & TECHNOLOGY

RESEARCH & TECHNOLOGY

Maria: Plan for Development
and Operation approved

The software

Life cycle of an
oil and gas field

The life of crude oil and natural gas
fields is divided into different phases,
from discovery to decommissioning.
Reservoir models and simulations play
a major role in each of these phases,
since they are the basis for every
investment decision.

The reservoir modeling experts use the Petrel
software. On the right you have the finished
product – that is, a static 3-D model of the
Emlichheim reservoir. The processes previously
carried out by the program are displayed on the
left. These include, for example, the ­d rawing-up
of wells analysis and the definition of the­
model limits, as well as the layers definition and
­reproduction of rock types.

GAS PIPELINE The Polarled
pipeline has crossed the Arctic
Circle. It will connect the planned
Aasta Hansteen field off Norway
with the refinery on the mainland.
Wintershall is a shareholder in the
482-kilometer pipeline.

19.5

1. EXPLORATION The phase in which
geologists and geophysicists search for oil
and gas deposits. Seismic surveys are used
in this. The upshot is – hopefully – a well
that strikes oil or gas.

field up to production is cost-intensive.
The whole of the production processes is
planned in detail. Production facilities,
infrastructure, etc. are designed and built.

4. PRODUCTION The length of time a field

can produce oil or gas varies. Some 30 to
40 years is the norm. As time goes by, oil at
least needs a helping hand – by means of
water injection, for example.

5. DECOMMISSIONING At some point in
time, the recoverable reserves become
exhausted and production is no longer
­economically worthwhile. All the facilities
are then dismantled and the terrain is
­carefully renatured.

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03 / 2015

made at every phase in the life of a field.
For example, if a field is already on stream,
the production engineers and facility engineers keep on developing measures to optimize output. They play through all these
ideas in reservoir modeling, and examine
whether they make economic sense. The
process from interpretation of the seismic
survey to the forecast is therefore repeated over and over. Some 20–30 models are
created every year at the headquarters in
Kassel alone.
Despite all the calculations, one thing
is always a given: Reservoir models only
ever represent an approximation of reality.
Misinterpretations and mistakes are possible. The quantity and quality of the data
are key factors in how good a model is.
How well-known is the geological basin in
which the reservoir is located? Do I have
a high-quality 3-D seismic survey? How
many wells have already been drilled?
“Wells in particular supply an incredible
amount of important information. If there
are 200 wells, as in the case of the Yuzhno
Russkoye gas field, you know just about all
there is about the field,” says Calogirou.
Things get tricky if a reservoir acts differ-

The expert
Aggelos
Calogirou,
head of
Reservoir
Engineering.

INTEGRATED
RESERVOIR
MODELING
INVOLVING
EVERYONE

RESERVOIR MODELS
ARE ONLY EVER
AN APPROXIMATION
OF REALITY.
ently than expected. “That‘s the case with
carbonate reservoirs in the Middle East,
for example,” explains Calogirou, who also
heads the internal skill network for dynamic reservoir modeling. “Carbonate is a very
­heterogeneous rock. One well might come
across fossil crayfish, the next a salt dome,
and a third something different. That
makes predictions more difficult.”
One thing that, as a rule, enormously
improves the quality of models is teamwork. In the end, we need knowledge from
all areas of expertise. That is why geoscien-

Geologist,
­p etrophysicist
or reservoir
­e ngineer –
all ­r elevant
­d isciplines
work together
in ­i ntegrated
­r eservoir
­m odeling.

tists and engineers start developing shared
concepts, compiling data, and integrating
this into models at the very beginning of a
project. “Everyone works with a software
platform that provides specialists with
tools and the infrastructure for a shared
model,” says geologist Maite de Medeiros,
who regularly works on reservoir models.
Integrated reservoir modeling (IRM) has
become second nature at Wintershall.
One thing is for sure: the question of
how much oil or gas there is in a reservoir
may be easy, but the answer definitely is
not. But finding that answer is a task that’s
really enjoyable, says Calogirou. “In reservoir modeling, I have to be highly focused
and really rack my brains. It’s a challenge
that keeps on inspiring me time and time
again.”

LEARNING
FROM ONE
ANOTHER

In the competence network,
experts share
notes and develop their skills
further. It
is headed by
Koos Pipping.

Our writer Katrin Rausch is Press
Spokeswoman for Technology at
Wintershall. One of her tasks is to
explain complex EOR projects in an
understandable way.

Photos: Heiko Meyer (2), Statoil, Morten Berentsen/MBMultimedia.no, InterTopics, Christian Burkert Grafik: C3 Visual Lab

The workstation called Brunhilde calculates
and processes the mass of data to create
3-D m
­ odels – 50 percent faster than any other
computer at Wintershall.

2. APPRAISAL In this phase, further
information about the field is gathered – for
example, by drilling wells. It ends with a
decision to develop the field or not.

3. DEVELOPMENT Development of the

PERCENT: The record budget
deficit of Saudi Arabia. Some
85 percent of the country’s
budget is based on revenue
from oil exports. A working
party is to propose economy
measures for 2016.

UPTURN The oil industry is
­ xperiencing a small boom in the
e
Barents Sea. Some 650 workers are
pressing ahead with creating the
22 production wells for the Goliat
project. Half have already been
finished. Wintershall is also planning
activities in the Barents Sea.

Recoverable reserves
are around 180 million
barrels of oil equivalent.

NORWAY The Norwegian Ministry for Petroleum and Energy
has given its approval to the Plan for Development and
Operation (PDO) of Wintershall and its partners Petoro
and Centrica for the Maria field. Wintershall submitted the
plan to the ministry this May. The development solution
that has now been approved consists of two installations
on the seabed (subsea templates), that are connected to
the ­production platforms Kristin, Heidrun, and Åsgard B
via a subsea completion. “That is a further milestone for
­Wintershall in Norway. We’re making speedy ­progress
with development of this key project in a challenging
­environment,” says Product Manager Hugo Dijkgraaf.  (rau)

+

The company Odfjell Drilling will drill the six production wells
with the platform Deepsea Stavanger starting in April 2017.

CSEM measurements
again in Bockstedt
The magnetic field measurements
­ onducted by Wintershall and the German GeoResearch
c
Center (GFZ) at the Bockstedt oil field last year will be
­continued this fall. Wintershall and GFZ intend to ascertain
the ratio of oil remaining in a reservoir using the CSEM
(Controlled Source Electromagnetics) method. To do that,
they measure the propagation of electromagnetic fields
in the subsurface. By repeating the test from the ­previous
year, they are able to compare results and determine
­possible changes below ground. The measurement
campaign will begin at the end of October and last around
four weeks. (rau)

RESEARCH PROJECT

“Fracking ­offers
enormous
­opportunities for
the UK: 60,000
new jobs, as well
as greater ­supply
security and
prosperity.”

Bert Verboom
(Wintershall) and
Kristina Tietze (GFZ)
conducted initial
measurements at
the field in 2014.

ANDREA LEADSOM,

the UK’s Minister of State
at the Department for
Energy and Climate Change,
about fracking in production
of shale gas.

03 / 2015

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COMPANY

COMPANY

New possibilities
in Siberia

Wintershall
expands
Nord Stream

The German-Russian partnership will
be strengthened by the asset swap.

T

he new Nord Stream 2
project envisages the
construction of two further offshore pipelines
from Russia to Germany, which
are to run through the Baltic Sea
and have a total annual capacity of
55 billion c­ ubic meters of gas. The
construction project will leverage
the positive experience gained from
Nord Stream in accomplishing safe
and reliable infrastructure projects.
Since the fall of 2012, natural gas
has been transported from Russia to
Europe through Nord Stream. The
1,224-kilometer pipeline runs from
Vyborg in Russia under the Baltic
Sea to Lubmin on the coast of Ger-

Agreement After being postponed a few months ago, the deal has now been sealed.
Among other things, Wintershall will sell its stake in its gas trading and storage business to
Gazprom – and in turn receive access to further natural gas fields in Siberia.

At 1,224
kilometers,
Nord Stream
is the world’s
longest
underwater
pipeline.

You can find more information at:
www.wintershall.com

The world’s longest offshore pipelines

FINLAND
Vyborg

1,224 km

Nord Stream
Vyborg, Russia

Lubmin, Germany

1,166 km

Langeled

ESTONIA
889 km

RUSSIA

Darwin, Australia

Ichty, Australia

SWEDEN

Nord Stream

LATVIA

Nord Stream 2
BALTIC SEA

LITHUANIA

DENMARK
RUSSIA
NORTH SEA
Lubmin

BELARUS

GERMANY

14

WINTERSHALL INFORMATION

POLAND

03 / 2015

Details of the
agreement
at a glance:
1   Achimov formation
Participation in blocks IV and V

Essington, United Kingdom

Nyhamna, Norway

Ichthys pipeline

B

many. That makes Nord Stream the
world’s longest underwater pipeline.
Nord Stream 2 is being developed by the new project company
New European Pipeline AG. Under
the agreement, Gazprom has a 51
percent stake in the project company. Wintershall holds 10 percent.
The other partners are E.ON, Shell,
and OMV (each with 10 percent),
and ENGIE (9 percent). (dh)

Under the agreement, Wintershall will
cooperate with Gazprom on developing two
further blocks of the Achimov formation at Novy
Urengoy in Western Siberia, 3,500 kilometers
northeast of Moscow. Wintershall will receive
25 percent plus one share in blocks IV and V.
Geologists estimate that the hydrocarbon
deposits in these two blocks could amount to
274 billion cubic meters of natural gas and
74 million tonnes of condensate – or 2.4
billion barrels of oil equivalent. Production is
­scheduled to start in 2018. Plateau production
of at least 8 billion cubic meters of gas a year is
expected to be achieved from both blocks.

RUSSIA:

2   Gas trading and storage
All shares transferred to Gazprom
WESTERN AND SOUTHEASTERN EUROPE: Wintershall
will transfer its natural gas trading and storage
business fully to Gazprom. Wintershall and
Gazprom have operated in this market in
Germany and other European countries since
1990 as almost equal partners. Gazprom will
now take over Wintershall’s shares in the natural
gas trading companies WINGAS (50.02 percent)
and WIEH (Wintershall Erdgashandelshaus
Berlin, 50 percent), including WIEE (­Wintershall
Erdgashandelshaus Zug). Wintershall will
continue its cooperation with Gazprom in the
natural gas transportation business (Gascade,
NEL, OPAL) and on the Nord Stream pipeline.

ASF and Gazprom have
decided to now complete
the asset swap that was
agreed in 2012 and was
briefly put on ice in December 2014.
As a result of the swap, BASF will
further expand its oil and gas production with Wintershall, and shed
its gas trading and storage business.
The planned asset swap was and is a
relevant component in Wintershall’s
strategy of getting closer to sources
of natural resources – also given the
current level of oil prices. Oil and
gas production in Russia is robust
and also extremely profitable at low
market prices.
The swap is expected to be closed
by the end of 2015 and, as agreed
in December 2013, will apply with
retroactive economic effect as of
April 1, 2013. The European Com-

mission approved the transaction at
the beginning of December 2013.
“We are continuing our oil and
gas strategy, and concentrating on
growing profitably at the source in
our oil- and gas-rich focus regions,”
says Kurt Bock, BASF Chairman of
the Board of Executive Directors.
“We’re pleased to be further expanding joint production of natural gas
and condensate with our partner
Gazprom in Western Siberia.”

What the media and analysts
say about the asset swap
“Deal that sends out a signal”
HANDELSBLATT

“Warm words in the permafrost”
SÜDDEUTSCHE ZEITUNG

3   Wintershall Noordzee

Gazprom will hold a 50 percent
stake.
In addition,
Gazprom will acquire a 50 percent
interest in Wintershall Noordzee
B.V., which is engaged in oil and
gas exploration and production in
the southern section of the North
Sea (Netherlands, UK, Denmark).
Wintershall has been active in
the North Sea since 1965, and
is one of the largest natural gas
­producers in the Netherlands.
Wintershall operates 23 offshore
platforms there.
NETHERLANDS:

“Gazprom strengthens presence
in Western Europe”
DE TELEGRAAF

“Strategically logical step”
DEUTSCHE BANK

“Good deal finally coming”

Photo: Justin Jin Graphic: C3 Visual Lab

Investment Wintershall intends to participate in expansion
of the Nord Stream pipeline. Two additional new strings are
to double its capacity.

BANKHAUS LAMPE

You can find an extensive review of
the press reports on the asset swap
at wintershall.net/go/assetswap

03 / 2015

WINTERSHALL INFORMATION

15

SERIES

Around the
world with
Wintershall’s
very own
travel guide.
In this series,
­­employees
­p rovide insider
tips about
their city for
­colleagues
visiting on
business trips.

GUEST ARTICLE

“We’ll
also
be
successful
5
2
together in the future”

FORECAST Demand for oil is growing

at a rate not seen in the past five
years. The International Energy
Agency expects it to increase by 1.6
million barrels to an average of 94.2
million barrels a day in 2015. The
reason is the drop in prices
for crude oil, and the improving
economic situation.

Guest article Wintershall and Gazprom have established a trusted partnership, one
that overcame boundaries in 1990, and has found new paths. Alexej Miller, Chairman
of the Management Committee of PAO Gazprom, has written a guest article to mark
the 25th anniversary of this cooperation.

TIPS ON
DISCOVERING A CIT Y

+

COMPANY

Frozen fish and a
selfie with reindeer

BACKGROUND

Alexej Miller
studied
finance and
­economics.
He has been
Chairman of
the Management Committee of Russian
gas group
Gazprom since
2001.
THE GROUP

Gazprom is one
of the world’s
largest energy
providers and
suppliers.
­According
to its own
figures, it has
­d eveloped
and potential
­reserves of
35.7 trillion
cubic meters of
gas, or around
17 percent
of global
reserves.

Alexej Miller
is a friend of
the GermanRussian
partnership.

DEAR COLLEAGUES,

I

n 2015 we are celebrating
the 25th anniversary of
the cooperation between
Gazprom and Wintershall. In
this quarter of a century, we not only
commenced direct gas deliveries
to Europe, but also successfully
accomplished several infrastructure
projects of importance for the whole
of Europe, and established a complete production chain – from gas
production in Russia to the selling
of gas in Europe.
Our partnership began with the
foundation of the first joint venture
WIEH, whose tasks include transportation, storage, and selling natural gas on European markets. Gas

16

WINTERSHALL INFORMATION

03 / 2015

sales in Europe are now also handled
by our joint ventures WIEE and
WINGAS; the latter company provides Gazprom with access to end consumers in Germany.
Gazprom and Wintershall have
made a great contribution to expanding the gas transport infrastructure in Europe. The MIDALSTEGAL-­JAGAL-WEDAL pipeline
system we created not only significantly increased transport capacities
in Germany, but also improved links
with the transport networks in other
European countries.
A special milestone in the history of our partnership was the commissioning of the Nord Stream gas

pipeline in 2011. This “energy
bridge” established a direct connection between gas supplier and consumers, creating a stable foundation
for European energy security.
Our collaboration in the field of
underground gas storage is of great
importance in enhancing energy
security in Europe. We currently
operate Europe’s largest underground gas storage facilities, Rehden
and Haidach.
Wintershall was the first foreign
company to begin producing natural gas in Western Siberia together
with Gazprom. The joint venture
Achimgaz is developing the Achimov
horizon, which is difficult to access.
We’re also jointly developing the
Yuzhno Russkoye reservoir.
Our companies also implement
a partnership program in the field
of employee training and further
education. And we’re conducting
numerous joint projects as part of
cultural exchange between Russia
and Germany.
To
date,
Gazprom
and
Wintershall have gathered extensive
experience in all areas from their
fertile cooperation: from gas production in Russia, transport and storage,
to sales in Europe. I feel certain that
this is a fine foundation for future
successes together.

The official anniversary celebration
will be held in the Chinese Palace
in St. Petersburg on October 17.

NOVY URENGOY

Discovered by our employee
Dmitriy Shturn, Production Support Engineer

“Falling commodity
prices will weigh on
the global economy
for a long time to
come. The change
in demand for oil
and ores will have
a dramatic impact
in Latin America in
particular.”
DILMA ROUSSEFF,

Brazil’s President, in an
interview with the German
newspaper Handelsblatt.

GAS DISCOVERY A large gas field
has been found 170 kilometers off
the coast of Egypt. The Shorouk
Block in the Mediterranean could
harbor up to 850 billion cubic meters
of gas. The well has been sunk to
more than 4,100 meters; the waters
are 1,450 meters in depth. The
deposit is one of the largest finds
worldwide.

WHEN I HAVE VISITORS

DINING OUT

Siberian sashimi or
“whitefish stroganina,”
served on a block
of ice. A very thinly
sliced filet of freshly
frozen fish, stroganina
is always served raw.
It first melts in your
mouth – a magnificent
taste! If you like it
spicier, you go to the
Mexican restaurant
called Don Julio.

Motocross races and
gliding are popular in
the summer. However, the summer lasts
fewer than 35 days. In
the winter we attend
reindeer races, drive
our snowmobile, ski,
go ice fishing and, if
it’s too cold, we go
bowling and play pool
in the Polar Owl.

THINGS WORTH KNOWING

Novy
Urengoy

Novy Urengoy is a young city, celebrating its 40th anniversary this
year. The region was virtually uninhabited as recently as 1960. Now
more than 100,000 people live here,
and the population is rising. There
has been a cooperation between
the city and Kassel since 2005.

DEFINITELY

MY HOME TOWN

Novy Urengoy offers
me the ideal
work-life balance.
We work hard in a
harsh climate, but
we’re successful!
And we’ve just about
everything to relax
with here – including a
3-D movie theater that
recently opened.

WHAT NOT TO DO!

In winter, never go outside
without thermal underwear.
The temperature drops as
low as minus 50 degrees,
and your breath then freezes
on the car windshield. In the
summer, you definitely need a
­mosquito hat for protection.

03 / 2015

A visit to the Arctic
Circle is a must. And
then, of course, a
photo in front of Stella,
the monument at the
entrance to the city. It
shows that our Novy
Urengoy is the gas
capital of Russia.
If you’re lucky, you
can also see the
­northern lights.

DID YOU KNOW?

More than 75 percent of the
natural gas produced in Russia
comes from the region around
Novy Urengoy. It takes seven days
for the gas to travel from there
to Germany. On the shortest day
of the year, there is only one hour
of daylight.

WINTERSHALL INFORMATION

17

Photos: Gazprom, Christian Burkert, Getty Images, Boris Welikow (2), Justin Jin, private (2)

ABOUT ALEXEJ
MILLER