Wintershall Dea sells 10% stake in UAE's Ghasha concession to PTTEP
Germany’s Wintershall Dea has signed an agreement with Thai state-owned PTT Exploration and Production Public Company (PTTEP) for the sale of its 10% interest in Abu Dhabi’s Ghasha offshore gas concession, it announced on June 11. All conditions required for the closing, including regulatory approvals, have been fulfilled.
This transaction is part of broader company changes and follows the December 2023 news that Wintershall Dea’s shareholders, BASF and LetterOne, signed a business combination agreement with Harbour Energy.
The agreement involves the transfer to Harbour Energy of Wintershall Dea’s exploration and production business, which includes 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 licences. Wintershall Dea's stake in the Ghasha project is not part of the agreement with Harbour Energy and will be sold to PTTEP instead.
As a result of this transaction, Wintershall Dea intends to close its office in Abu Dhabi and cease all operations in the country. The company began its activities in the UAE in 2010 with the opening of a branch office. In November 2018, the company was awarded a 10% ownership in the Ghasha concession.
Last year, Abu Dhabi National Oil Company (ADNOC) announced the final investment decision and awarded contracts for the Hail and Ghasha offshore gas development project. The Hail and Ghasha development integrates decarbonisation technologies into a single solution. The project will capture 1.5mn tonnes/year of CO2, increasing ADNOC's committed carbon capture capacity to nearly 4mn tonnes/year. The Ghasha project is expected to produce more than 1.5bn ft3/day of gas before the end of the decade.
In a separate statement, PTTEP noted that the investment will immediately boost the company’s petroleum reserves.
“The acquisition of the Ghasha concession, a significant natural gas field, marks an important step in strengthening PTTEP’s Middle East investment portfolio,” said PTTEP CEO Montri Rawanchaikul. “Additionally, the proximity of the concession will pave the way for further collaboration among the joint venture partners, benefiting the project's success.”
In the Middle East, PTTEP is also involved in the Sharjah Onshore Area A project, the Sharjah Onshore Area C project, and the ADNOC Gas Processing joint venture.