[Editor's note: This story was updated at 8:30 a.m. CST Sept. 28.]
Chemicals group BASF and LetterOne signed a merger agreement to combine their respective oil and gas businesses Wintershall and DEA to create an independent European oil and gas company, the companies said Sept. 27.
The new company called Wintershall DEA will be headquartered in Kassel and Hamburg and will seek to list itself through an IPO, BASF said.
Under the deal, LetterOne will put all its shares in a vehicle of Russian billionaire Mikhail Fridman's DEA into Wintershall Holding GmbH against the issuance of new shares of the company to LetterOne.
BASF will initially hold 67% and LetterOne 33% of Wintershall DEA's ordinary shares.
The Joint Venture will aim for daily production of 750,000 to 800,000 barrels of oil equivalent between 2021 and 2023 and is expecting synergies of at least 200 million euros (US$232.80 million) per year are expected as of the third year following the closing of the transaction.
The new independent company will be led by the CEO of Wintershall, Mario Mehran and Maria Moraeus Hanssen, CEO of DEA, will be the deputy CEO and COO of the joint venture.
Closing is subject to regulatory approvals and is expected in the first half of 2019. (US$1 = 0.8591 euros)
Recommended Reading
Beach Town Corpus Christi Grows into America’s Top Energy Port
2024-01-16 - The Port of Corpus Christi is the U.S.’ largest energy export gateway and in terms of total revenue tonnage as increased midstream investments have opened export markets for the prolific Permian Basin.
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.
BP: Gimi FLNG Vessel Arrival Marks GTA Project Milestone
2024-02-15 - The BP-operated Greater Tortue Ahmeyim project on the Mauritania and Senegal maritime border is expected to produce 2.3 million tonnes per annum during it’s initial phase.
Commentary: The Oil and Gas Future—Believe It or Not
2024-01-10 - If you believe the IEA’s analysis, plenty of oil and gas companies won’t survive very far into the future.
Help Wanted (Badly): Attracting Workers to Energy is Becoming Difficult
2024-03-27 - Attracting workers to the energy industry is becoming a difficult job, despite forecasted growth in the industry.