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    Wintershall Dea ends activities in Brazil

Summary

Europe’s leading independent gas and oil producer cites portfolio optimisation as reason for exit

by: Maureen McCall

Posted in:

Complimentary, Americas, Europe, Corporate, Corporate governance, Investments, Brazil, Germany

Wintershall Dea ends activities in Brazil

Germany's Wintershall Dea said January 17 it will terminate all operations in Brazil, following all legal and contractual regulations and obligations.

In a statement, the company said it supports the EU's 2050 carbon neutrality target and wants to be net zero across its entire upstream operations by 2030.

In Brazil, Wintershall Dea holds interests in a total of nine exploration licences, spread over Potiguar, Ceará, Campos and Santos basins.

"This decision is the result of a very thorough analysis of our global portfolio and evaluation of individual projects and how they fit with our long-term strategy," said Thilo Wieland, a member of Wintershall Dea's board.

Brazil has been plagued with challenges since the 2008 discoveries of vast pre-salt basins. Regulatory barriers, high production costs, high decline rates and caps on domestic fuel prices have caused waning interest from international E&P companies.

"We greatly appreciate the good relationships we have built over the years with our business partners and the authorities in Brazil and will work constructively with them to ensure a smooth transition," Wieland said.

With German roots and headquarters in Kassel and Hamburg, Wintershall Dea explores for and produces gas and oil in 13 countries worldwide.