Wintershall Dea to reduce exploration expenditures

Oil&Gas Materials 18 March 2020 15:21 (UTC +04:00)
Wintershall Dea to reduce exploration expenditures

BAKU, Azerbaijan, March 18

By Leman Zeynalova - Trend:

Wintershall Dea, based in Germany, plans to reduce exploration expenditures from €341 million in 2019 to €150 – 250 million in 2020, Trend reports citing the company.

For 2020 the company expects production (adjusted for exclusion of the Libyan onshore production) to be in the range of 600 – 630 million boe/d , as compared to 617 mboe/d in 2019.

Wintershall Dea expects development and production capex (excluding acquisitions) to be in the range of € 1.4 – 1.6 billion in 2020, as compared to €1,494 million.

“We expect to increase our EBITDAX over the medium term. We expect free cash flow, comprising cash flow from operating activities and cash flow from investing activities, including disposals but excluding acquisitions, to be positive in 2020 (based on our underlying commodity price assumptions for 2020),” the company said.

In 2020, free cash flow breakeven is expected to be around $35-40 /bbl Brent, assuming around $4/mcf for European gas, according to Wintershall Dea.

The Wintershall Dea group’s new medium-term planning (MTP) was prepared and adopted in early February 2020.

“Our guidance, which does not include potential merger and acquisition (M&A) activities, is based on this MTP. We continue to focus on optimization of production from and further development of our existing assets in order to be well positioned during the ongoing volatility in commodity prices that are relevant for us. We are also working on ensuring that all of our key infrastructure maintains high reliability levels in order to achieve consistent delivery of target production levels,” said the company.

Wintershall Dea searches and produces natural gas and crude oil worldwide.


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