Credit: Wintershall Dea
Wintershall Dea joins the capex cutters
The independent producer is the latest to announce reduced spending in the new price and demand environment
German E&P and midstream firm Wintershall Dea will cut its planned 2020 development capex by 10pc from initial expectations as it joins the club of upstream operators focusing on trying to lower costs. But its measures may not be enough to deliver free cash flow (FCF). The company plans to spend €1.2-1.5bn ($1.3-1.7bn) on development capex in 2020. This is down from expectations but comparable to 2019 expenditure should spend come in at the very top of the range. Wintershall Dea’s exploration budget will, though, see a significant year-on-year reduction, down to €150-250mn in 2020 compared with €340mn last year. But, despite trumpeting its low production costs—$4.70/bl oe in 2019 compa
Also in this section
1 May 2025
The NOC’s dire financial situation and maturing fields has left the authorities with little choice but to reduce crude expectations
30 April 2025
With a new board appointed to lead NNPC and moves by President Tinubu to exert control in the Delta region, there is renewed hope the country will be able to turn the corner and rebuild production to former peaks
30 April 2025
While economic weakness and the electric vehicles trend have hit oil demand growth, petrochemicals and jet fuel show more nuanced changes across the barrel
30 April 2025
The company will use methane-rich gas produced from local coal to temporarily replace lost supplies from Mozambique
