Acquisition of shares in the Reggane Nord gas project closed
- Completion of acquisition is part of plan to grow in Algeria
- The Groupement Reggane Nord will consist of Wintershall Dea (24%) and partners Sonatrach (40%) and Repsol (36%)
- Country with major potential for energy supply and energy transition
Wintershall Dea is expanding its presence in Algeria. Following the completion of the transaction and regulatory approvals, the company is increasing its participating interest in the Reggane Nord natural gas project by 4.5 per cent through the acquisition of interest from former project partner Edison. The Groupement Reggane Nord, operator of the project, will thus consist of Sonatrach (40%), Repsol (36%), and Wintershall Dea (24%).
For Wintershall Dea, all signs point to growth in Algeria. The company has been active in the North African country since 2002. Since production began in Reggane Nord in December 2017, around 13 billion cubic meters of gas have been produced in the consortium. Its business in Algeria is an important part of the company's portfolio and is to be expanded in the future. To this end, in February 2022 Wintershall Dea and partner Sonatrach extended an existing Memorandum of Understanding to consider new business opportunities in Algeria, not just in natural gas but also in hydrogen and Carbon Capture and Storage (CCS).
Dawn Summers, Chief Operating Officer and the responsible Board Member for Algeria, says: "We see great potential for the future of the Algerian energy sector; both for the expansion of natural gas production, and for carbon management and hydrogen projects. Areas in which Wintershall Dea intends to become active in Algeria in the future. With the acquisition of further interest in Reggane Nord, we are now consolidating our presence in Algeria and setting the course for growth."
Thomas Ruttmann, Senior Vice President and Managing Director Wintershall Dea Algeria says: "Reggane Nord has been producing natural gas reliably and cost-efficiently since 2017. Wintershall Dea is not just an investor, our team is actively contributing experience and know-how and effectively contributes to the efficiency of the project – especially our drilling and reservoir expertise is in demand here. We are pleased to now increase our participating interest in the project and continue to actively advance Reggane Nord in the future."
Algeria is the largest producer of natural gas in Africa and the third largest exporter of natural gas to Europe. The North African country therefore makes a decisive contribution to Europe's energy supply and is the ideal partner for Europe to secure its energy supply and at the same time advance the energy transition.
About Wintershall Dea
Wintershall Dea is Europe’s leading independent natural gas and oil company with more than 120 years of experience as an operator and project partner along the entire E&P value chain. The company with German roots and headquarters in Kassel and Hamburg explores for and produces gas and oil in 11 countries worldwide in an efficient and responsible manner. With activities in Europe, Latin America and the MENA region (Middle East & North Africa), Wintershall Dea has a global upstream portfolio and, with its participation in natural gas transport, is also active in the midstream business. The company will exit Russia. More in our Annual Report.
As a European gas and oil company, we support the EU's 2050 carbon neutrality target. As our contribution we have set ourselves ambitious targets: We want to be net zero across our entire upstream operations – both operated and non-operated – by 2030. This includes Scope 1 (direct) and Scope 2 (indirect) greenhouse gas emissions on an equity share basis. Wintershall Dea will also bring its methane emissions intensity below 0.1 per cent by 2025. We endorsed the World Bank’s Initiative ‘Zero Routine Flaring by 2030’ and continue to support the initiative aimed at eliminating routine flaring in operated assets by 2030. In addition, we plan to support global decarbonisation efforts by building up a carbon management and hydrogen business to potentially abate 20-30 million tonnes of CO2 per annum by 2040. You can find more about this in our Sustainability Report.
Wintershall Dea was formed from the merger of Wintershall Holding GmbH and DEA Deutsche Erdoel AG, in 2019. Today, the company employs more than 2,000 people worldwide from almost 60 nations.