Wintershall basing 2017 plans on $55/bbl Brent crude price

Germany’s Wintershall Holding GMBH increased oil and natural gas production 8% to 165 million boe in 2016, with higher production volumes coming primarily from Norway and Russia.

Germany’s Wintershall Holding GMBH increased oil and natural gas production 8% to 165 million boe in 2016, with higher production volumes coming primarily from Norway and Russia.

“Russia is our most important core region,” said Mario Mehren, chief executive officer, at the company’s annual press conference (OGJ Online, Mar. 30, 2015).

The company cited Russia and Argentina for low costs of production and reserve replacement.

Wintershall’s proved reserves at yearend 2016 were 1.62 billion boe, and its reserves-to-production ratio was 10 years.

Nine of 14 exploration and appraisal wells drilled in 2016 discovered oil or gas compared with 17 of 25 in 2015.

The company’s plans for 2017 are based on an average price of $55/bbl for Brent crude. The average price was $44/bbl in 2016 and $52/bbl in 2015.

Its key projects in the coming years will be Maria and Aasta Hansteen in Norway, the Achimov formation in Russia, and in the Tierra del Fuego and Neuquen provinces in Argentina.

Wintershall has a 50% share in the development of Block 1A of the Achimov formation in Urengoy field in western Siberia and plans to develop Blocks 4A and 5A. Also in western Siberia, the company said Yuzhno Russkoye gas field has been producing at plateau since 2009.

In Argentina, Wintershall has shares in 15 fields both onshore and offshore. It said offshore field Vega Pleyade “is a key project for Wintershall in Argentina and will make a vital contribution to the natural gas supply on the Argentinean market.”

In Libya, with “difficult political conditions,” Wintershall resumed production in September from onshore concession 96 “at a low level” of 35,000 boe/d.

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