Wintershall Dea divests Ghasha Concession stake to PTTEP to exit Abu Dhabi operations

Wintershall Dea, a prominent German oil and gas firm, has completed the divestiture of its 10% participating interest in Abu Dhabi’s Ghasha concession to PTT Exploration and Production Public Company Limited (PTTEP), a major player in Thailand’s energy sector. The terms of the transaction were not disclosed, but all necessary regulatory approvals have been secured, signaling the completion of the deal.

Strategic Divestment Amidst Broader Corporate Changes

The Ghasha concession, one of the UAE’s largest undeveloped natural gas, crude oil, and condensate reserves, encompasses several fields including Hail, Ghasha, and Dalma. Located offshore in western Abu Dhabi, this concession is expected to produce over 1,500 million standard cubic feet per day (MMSCFD) of gas by 2030. Additionally, it aims to capture 1.5 million metric tons per annum (MMtpa) of carbon dioxide in pursuit of net-zero emissions.

This divestiture is part of Wintershall Dea‘s broader strategy to reorganize its global operations, following the announcement of a merger with Harbour Energy in December 2023. Notably, the Ghasha concession stake was excluded from the merger agreement with Harbour Energy.

Wintershall Dea divests its stake in Abu Dhabi’s Ghasha concession to PTTEP, marking its exit from the region and reinforcing PTTEP’s Middle East presence.

As a result of this transaction, Wintershall Dea plans to shut down its operations in Abu Dhabi, closing its office in compliance with all contractual and legal regulations. This move marks a significant shift in Wintershall Dea’s strategic focus and operational footprint in the region.

PTTEP Bolsters Its Middle East Portfolio

For PTTEP, acquiring the stake in the Ghasha concession is a strategic enhancement to its investment portfolio in the Middle East. The company already holds interests in nearby exploration concessions, which could foster synergies and enhance collaboration among the joint venture partners.

PTTEP’s CEO Montri Rawanchaikul highlighted the acquisition’s importance, stating, “The acquisition of the Ghasha Concession, a significant natural gas field, marks an important step in strengthening PTTEP’s Middle East investment portfolio.” He added that the proximity of the concession location would pave the way for further collaboration that will benefit the project’s success.

Impact on the Regional Energy Landscape

The Ghasha concession project is a critical development for Abu Dhabi’s energy sector, with ADNOC retaining a 55% stake and other global partners including Eni, OMV, Lukoil, and now PTTEP involved. The project’s focus on sustainable gas production and carbon capture initiatives aligns with broader regional goals for energy security and environmental sustainability.

This transition in stake ownership comes at a pivotal time when the global energy sector is increasingly focusing on sustainability and the reduction of carbon emissions. The project’s commitment to capturing carbon and achieving net zero emissions is particularly notable, reflecting the industry’s shift towards more environmentally friendly practices.