The first year of Wintershall Dea following the merger saw the company achieve a strong operating performance but challenging times lie ahead.
The company produced 642 thousand barrels of oil equivalent (BOE) per day in 2019, which is 9 per cent more gas and oil than Wintershall and DEA’s combined total in 2018 (589 thousand barrels/day).
Wintershall Dea CEO Mario Mehren made a video address for the company's 2020 Annual Press Conference and discussed the firm's action plan to deal with the current market crisis brought on by the coronavirus and low oil prices.
“We are living in uncertain times, which place great demands on all of us. In the first two months of this year, we already experienced high levels of uncertainty in the global economy. With the coronavirus, another factor has been added to the mix. On top of that, there has just been a sudden collapse in oil prices on the markets. It was the sharpest fall in 30 years."
Mehran noted: "We assume that the negative effects of the coronavirus will have a significant global impact, especially in the 1st and 2nd quarters of 2020. Oil and gas prices will remain significantly below last year´s prices. For Wintershall Dea we anticipate a daily production of 600.000 to 630,000 barrels of oil equivalent in 2020, already excluding the Libyan volumes."
Mehran added: "In response to what we expect to be a sustained period of challenging commodity prices, we are taking a number of decisive measures. Firstly, a 20 per cent reduction on our original plans for this year and comparable to our 2019 Development Capex of around 1,5 billion Euro. In addition, we will be reducing our exploration budget for the year to 150 to 250 million Euros compared to 340 million Euros in 2019."