KASSEL, Germany – Wintershall and DEA aim to close their merger during the first half of this year, creating what they claim will be Europe’s largest independent gas and oil producer.
The new company will look to increase combined production (in 2017) of 575,000 boe/d by around 40% to 800,000 boe/d between 2021 and 2023.
Growth will come from the existing portfolio and new production regions such as Mexico (where DEA is one of the new permit holders), and Abu Dhabi, where Wintershall recently joined theoffshore Ghasha concession.
Through the merger, the two companies anticipate synergies of at least €200 million ($227 million) annually from higher production increases and cost reductions.
They expect to cut their combined global workforce of 4,200 by around 1,000, with roughly 800 jobs going in Germany and the remainder in Norway, mainly related to the completion of large field development projects.
More than half of the cuts in Germany will be within the corporate functions at the two companies’ present headquarters in Hamburg and Kassel. In the future, Wintershall DEA’s Business Unit Germany will be based in Hamburg.
Barnstorf in Lower Saxony, the current headquarters for Wintershall’s German operations, will comprise a production site with well services, the recently opened technology center, the central core storage facility, and the center for vocational training.
DEA’s laboratory and core storage facility in the same region will relocate to Barnstorf.