Sale of Wintershall Dea’s E&P business to Harbour Energy is completed, marking a major step for BASF in exiting the oil and gas sector.
London-based Harbour Energy plc has successfully completed the acquisition of Wintershall Dea's exploration and production (E&P) business, a transaction valued at $11.2 billion. The deal, which was announced in December 2023, closed ahead of schedule on September 3, 2024, after receiving all necessary regulatory approvals. This move is a major milestone for Wintershall Dea’s shareholders, especially German chemical giant BASF, which has taken a decisive step toward its strategic goal of divesting from the oil and gas industry.
The acquired assets include a comprehensive portfolio of producing and development assets, as well as exploration rights across several key regions. This includes operations in Norway, Argentina, Germany, Mexico, Algeria, Libya (excluding Wintershall AG), Egypt, and Denmark (excluding Ravn). The transaction also includes Wintershall Dea’s carbon storage (CCS) licenses. The combined company now boasts pro-forma sales of $10.1 billion in 2023 and production volumes exceeding 500 thousand barrels of oil equivalent per day. Their combined 2P reserves stand at 1.5 billion barrels of oil equivalent.
In exchange for the assets, Wintershall Dea’s shareholders, BASF (72.7%) and LetterOne (27.3%), received a total cash consideration of $2.15 billion. BASF’s share of the cash alone was $1.56 billion. Additionally, they received new shares in Harbour, granting them a combined ownership of 54.5% in the enlarged company, with BASF holding a 39.6% stake. The transaction also saw the transfer of approximately $4.9 billion in outstanding bonds from Wintershall Dea to Harbour.
The sale to Harbour Energy did not include Wintershall Dea’s headquarters in Hamburg and Kassel or its related staff. This has led to a significant restructuring, with Wintershall Dea and its employee representatives reaching an agreement in June 2024 on a social plan for the closure of the headquarters. The closure affects around 800 employees, with redundancies being implemented in a socially responsible manner. A certain number of these employees will be taken on by Harbour Energy.
While Harbour Energy has acquired the international assets, BASF and LetterOne remain the owners of Wintershall Dea, which now holds the Russia-related business. The company had previously announced its withdrawal from Russia in January 2023, and the remaining shareholdings will be wound down step by step.
In a separate but related transaction, Wintershall Dea also finalized the sale of its 50.02% stake in the German gas transport business WIGA to SEFE Securing Energy for Europe GmbH, which now holds a 100% share.
