Wintershall Dea E&P assets transferred to Harbour Energy as sale process completes

Wintershall Dea's E&P business, excluding Russia-related activities, has been transferred to Harbour Energy plc as of 3 September 2024, the company said on Tuesday.

The transfer includes production and development assets as well as 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 (CCS).

In December 2023, Harbour Energy signed an agreement with BASF and LetterOne, the shareholders of Wintershall Dea, to merge the two businesses. Following receipt of the necessary regulatory approvals, the transaction has now been completed, the company said.

Wintershall Dea’s remaining assets include stakes in the joint ventures in Russia, the ownership interest in Wintershall AG in Libya (Wintershall Dea share: 51%), in Wintershall Noordzee BV in the Netherlands (Wintershall Dea share: 50%) as well as the share in Nord Stream AG (Wintershall Dea share: 15.5%).

The management of Wintershall Dea had announced its withdrawal from activities in Russia in January 2023. Upon completion of the transaction with Harbour Energy, Wintershall Dea’s main tasks will include the handling of claims related to the expropriation of the Russian assets, the sale of the remaining assets, the organisational restructuring, and ultimately, the closure of the headquarters’ units in Kassel and Hamburg. Wintershall Dea will also provide transitional services to Harbour Energy for up to 12 months.

Following the closing of the transaction, Stefan Schnell, previously Senior Vice President Group Reporting & Performance Management at BASF SE, and Larissa Janz, previously Vice President Special Projects at Wintershall Dea, take over the management of the company as Chairman of the Management Board and Deputy Chairwoman of the Management Board, respectively. At the same time, the Chief Executive Officer Mario Mehren, Chief Operating Officer Dawn Summers and Chief Financial Officer Paul Smith have resigned from their mandates at Wintershall Dea AG.

“I thank the departing Management Board, and I thank the whole Wintershall Dea team for working professionally despite the significant challenges of the last nine months,” Stefan Schnell said.

“Now we are concentrating on divesting the remaining assets, and providing services to Harbour Energy in the coming months. We are also preparing to close down our headquarters. As we do this, we will continue to work as Wintershall Dea always has done – with responsibility and professionalism.”

Around 800 employees will be affected by the closure of Wintershall Dea’s headquarters in Kassel and Hamburg. In June 2024 the company and employee representatives concluded negotiations on a reconciliation of interests and a comprehensive social plan for employees. The social plan negotiated with employee representatives includes compensation agreements for job losses. In addition, the company is offering support through external services such as career counselling and outplacement.

After completion of the transaction, around 300 employees will initially continue to work for Wintershall Dea in Kassel and Hamburg. In particular, they will perform transitional services for Harbour Energy for up to 12 months. Once these activities have been completed, around 30 employees will remain with the company and take over the mid-term wind-down activities.

Wintershall Dea AG will change its legal form from a stock corporation (Aktiengesellschaft) to a limited liability company (GmbH) in the coming weeks and will then operate as Wintershall Dea GmbH, the company said.