German oil and gas company Wintershall Dea has sold its 10% interest in Abu Dhabi's Ghasha Concession to Thailand’s PTT Exploration and Production Public Company Limited (PTTEP) as part of its exit strategy from the United Arab Emirates, ahead of announced business combination with Harbour Energy.
All the conditions required for closing of the agreement, including regulatory approvals, have been fulfilled, according to Wintershall Dea.
The transaction is part of broader company changes and follows the news in December 2023 that Wintershall Dea’s shareholders BASF and LetterOne signed a business combination agreement with Harbour Energy.
Harbour Energy Strikes $11.2 Billion Deal for Wintershall Dea Assets
The agreement is for the transfer to Harbour Energy of Wintershall Dea’s E&P business, consisting of its production and development assets and exploration rights in Norway, Argentina, Germany, Mexico, Algeria, Libya (excluding Wintershall AG), Egypt and Denmark (excluding Ravn), as well as Wintershall Dea’s carbon storage licenses.
Wintershall Dea's stake in the Ghasha project is not part of the agreement with Harbour Energy, and will now be sold to PTTEP.
As a result of the transaction, Wintershall Dea intends to close its office in Abu Dhabi and all operations in the country. The termination of its operations in the country will be made in compliance with all contractual and legal regulations.
Wintershall Dea’s activities in the UAE began in 2010 with the opening of a branch office. In November 2018, the company was awarded a 10% participation interest in the Ghasha concession. Located offshore the Emirate of Abu Dhabi, the Ghasha concession comprises multiple projects and represents the world’s largest offshore gas development of its kind, according to ADNOC.
The Ghasha Concession includes the Hail, Ghasha, Hair Dalma, Bu Haseer, Satah, Nasr, SARB, Shuweihat, and Mubarraz offshore fields. The Hail and Ghasha Development Project will produce gas from Hail and Ghasha and serve as a hub for related offshore fields within the Concession area.
Worth noting, the project has included one of the UAE’s largest ever marine environmental baseline surveys and the use of artificial islands reduces dredging and drilling activities, while providing new habitats for marine life
The Ghasha concession holders are ADNOC, Eni, OMV, Lukoil and PTTEP, following the buy-out of Wintershall Dea’s share. The Dalma Gas Development project, awarded in November 2021, is also part of the Ghasha Concession and is expected to produce gas from the Hair Dalma, Bu Haseer, Satah fields by 2025.
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