The German chemical company BASF has signed a Letter of Intent (LoI) with the the Luxembourg-based investment firm Letter One on the merger of their oil and gas affiliates, Wintershall (BASF) and DEA (Letter One), both headquartered in Germany. As per the LoI, they will set up a joint venture (JV) named Wintershall DEA. The new company would be head-quartered in Hamburg and Kassel (Germany) and owned jointly by BASF (67%) and Letter One (33%) through its energy investment arm L1 Energy.
Once created, Wintershall DEA will be one of the largest independent European oil and gas exploration and production companies. The combined company will have a pro-forma production of approximately 590,000 boe/d and combined proven reserves (1P) of 2.1 Gboe (end of 2016), i.e. around 10 years of reserve to production ratio.
Financial details of the transaction were not disclosed yet. The closing could be expected in the second half of 2018 and a listing of the company through an IPO is envisaged in the medium term.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.