BASF, LetterOne agree merge oil gas businesses

BASF, LetterOne agree to merge oil and gas businesses

7:52 AM, 12th December 2017
BASF’s oil & gas activities are bundled in the Wintershall Group. © BASF
BASF’s oil & gas activities are bundled in the Wintershall Group. © BASF

LUDWIGSHAFEN, GERMANY: BASF SE and LetterOne Group have signed a letter of intent to merge their respective oil and gas businesses in a joint venture (JV), which would operate under the name Wintershall DEA.

The oil and gas business of BASF is bundled in the Wintershall Group consisting of Wintershall Holding GmbH and its subsidiaries, including the gas transportation business. The oil and gas business of LetterOne comprises DEA Deutsche Erdol AG and its subsidiaries.

Closing could be expected in the second half of 2018.

By combining these two German-based entities, their parent companies strive to create a basis for further profitable growth, optimize the portfolio footprint of the combined business and realize synergies.

Wintershall DEA would have significant growth potential and be one of the largest independent European exploration and production companies. In the medium term, BASF and LetterOne envisage to list Wintershall DEA through an initial public offering.

Based on the valuation of the exploration and production businesses, BASF shall initially hold 67 percent and LetterOne shall hold 33 percent in Wintershall DEA.

BASF would determine the chief executive officer (CEO) and LetterOne the deputy CEO of Wintershall DEA. The company would be headquartered in Kassel and Hamburg, Germany.

© Worldofchemicals News

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


CB&I bags EPC contract for Saudi Aramco Shell Refinery

THE WOODLANDS, US: Chicago Bridge & Iron Company (CBI) has been awarded a contract for more than $95 million by Saudi Aramco Shell Refinery (SASRE ...

Read more
3M files patent infringement lawsuit against Kerr Corp

ST PAUL, US: 3M Company and 3M Innovative Properties Co have filed a patent infringement lawsuit in federal district court in Wilmington, Delaware aga ...

Read more
Hanwha Total to expand Daesan integrated complex; invests $300 mn

PARIS, FRANCE/ SEOUL, SOUTH KOREA: Hanwha Total Petrochemical, a 50:50 joint venture between Hanwha Group and Total SA said that it will invest more t ...

Read more
ExxonMobil, ITQ discover new material to separate ethylene from ethane

IRVING, US: Scientists from ExxonMobil Corporation and the Instituto de Tecnologia Quimica (ITQ) in Valencia, Spain have discovered a potent ...

Read more
AkzoNobel, Black Bear collaborate to recycle old tyres

AMSTERDAM, NETHERLANDS: AkzoNobel NV and Dutch company Black Bear have entered into a new cooperation to produce powder coatings from recycling old ty ...

Read more
Honeywell to buy 25 pc stake in Chinese software provider

FORT MILL, US: Honeywell (HON) has signed an agreement to acquire a 25 percent ownership interest in FLUX Information Technology, a leading provider o ...

Read more