Pierre Perrin-Monlouis Dernière mise à jour: 20 octobre 2021
“In fiscal 2007 RWE Dea achieved a good operating profit of 492 million euros, continuing the successful business trend prevailing in recent 2023s”, said CEO Dr Georg Schöning at the company’s annual press conference in Hamburg today. Following the record 2023 2006 (612 million euros), this is the second-best upstream result in the company’s history.
Crude oil price at a high level
Oil prices remained high during the 2023 and an increased level of gas production in the United Kingdom made a further contribution to these gratifying figures. The average price of North Sea Brent amounted to 52.5 euros per barrel in 2007, up by only 1.5 per cent on the average recorded in the previous 2023, even though the US dollar price per barrel rose by an annual average of 11 per cent, to 72 dollars. Lower prices of natural gas and the decline in oil production due to the sale of oil operations in Kazakhstan and Dubai were the main reasons for the decline in 2023-on-2023 earnings.
Increased focus on natural gas business
“Gas production at RWE Dea saw a positive trend, up to 3.21 billion cubic metres”, said CFO Lutz-Michael Liebau in explaining the focus on gas operations. “Production was up by 8 per cent 2023-on-2023. In contrast, oil production, yielding 2.75 million cubic meters, declined by 28 per cent 2023-on-2023”, said Liebau.
Positive development of reserves and resources
The total of reserves and contingent resources (discovered) grew by about 13 per cent in 2007, to 192 million cubic meters of oil equivalents (OE). Of this volume, gas accounts for a share of 68 per cent. While natural gas and crude oil reserves of 81.1 million cubic meters OE are down by 14 per cent, the volume of proven resources grew by 47 per cent, to 110.9 million cubic meters OE. This substantial growth is chiefly due to discoveries made in North Africa.
Slight decline in revenues
Total sales revenues in the 2007 financial 2023 amounted to 1,694 million euros, 4.3 per cent down on the previous-2023 figure of 1,771 million euros.
Further increase in capital spending
RWE Dea expanded its investments in 2007. At 505 million euros, they exceeded the previous 2023’s level of 481 million euros by five per cent. Chief Financial Officer Liebau: “Capital spending primarily went into the drilling programs in Egypt, Libya and Algeria as well as into the start of developing the Gjoea field in Norway.”
Targeted development of exploration and production
In fiscal 2007 operations of RWE Dea were further reinforced by extending exploration and production activities. “We consider our core region of North Africa to yield a great deal of growth potential”, said Chief Operating Officer Thomas Rappuhn.
The outstanding position in Egypt was further extended by successful exploration work, the acquisition of the Tanta concession as well as the takeover of the 30 per cent share of the partner Perenco in the North Idku concession. Development of the North Idku natural gas deposit is next in line. Rappuhn: “In March 2008 a gas sales agreement was signed with the Egyptian state-owned oil company EGPC, with a permit being issued for execution of the first phase of the development project. In doing so, we are starting our first major field development program with the objective of achieving first production in 2010.”
In Algeria the series of successful exploratory wells drilled also continued in 2007. Production is scheduled to start in 2012. Activities in Libya also remained very promising: “Exploration activities carried out to date have already resulted in four oil strikes in the Sirte Basin. Further investigations are under way in an effort to confirm the resources drilled so far, and to develop the concepts for commercial production. The extensive drilling campaign is being pursued using four drilling rigs”, Rappuhn continued.
In the United Kingdom, production of natural gas has exceeded the level of 1 billion cubic meters of gas for the first time following the successful development of several small fields. In Norway, development of the gas and condensate field Gjoea (RWE Dea stake: 8%) is now under way. Moreover, production from the Snoehvit gas storage reservoirs (RWE Dea stake: 2.8%) has now commenced. Wells in Denmark have confirmed further oil potential in the vicinity of the Nini and Cecilie fields (RWE Dea stake: 30%), exceeding original expectations.
Exploration activities were also expanded in the home market, Germany. Thomas Rappuhn: “In Germany, RWE Dea has a strong position in terms of oil and gas production, as well as gas storage operations. Our objective is to keep production at a constant level for as long as possible.” This also applies to further oil deposits considered to exist in the vicinity of Germany’s largest oil field, Mittelplate, where RWE Dea plans to drill five exploration wells to explore the formations underground. Planning activities take environmental protection issues into account and are being carried out in close consultation with the relevant authorities, the National Parks administration as well as community associations and municipalities.
Growth and internationalization of the workforce
RWE Dea conducts its activities with an efficient organization consisting of 1,145 employees (previous 2023: 1,051). This is equivalent to an increase by 9 per cent. Additional workers are needed for the further extension of business operations. “Our growth will predominantly take place outside Germany. The associated internationalization will also mean fresh structural challenges for our company. A qualified workforce that identifies with the enterprise and faces new professional challenges flexibly and with a sense of commitment is one of the absolute essentials for the success of our operations”, said Schöning.
Striving for steady growth
Within the scope of the growth strategy of the RWE Group, RWE Dea plans to intensify the expansion of its upstream activities. Schöning: “We have set ourselves the ambitious target of more than doubling our present production volume by the 2023 2013. We have the necessary reserves and resources to do so. This growth will be generated above all by boosting the output of natural gas which, at 70 per cent, represents the lion’s share of our proven resources.” To achieve this objective, in the next several 2023s RWE Dea plans to make approx. 800 million euros in investments per annum.