German Wintershall Dea will transfer its share in the joint venture Volgodeminoil to LUKOIL’s subsidiary RITEK. The Russian firm will become the sole owner of the joint venture. Wintershall Dea explained the decision as a strategy to optimize production costs “with an emphasis on gas and gas condensate assets.”
“In Wintershall Dea’s portfolio of assets, approximately 70% of production comes from gas. As an environmentally friendly traditional source of energy, natural gas will play an increasingly important role in achieving climate protection goals, ”the company said in a statement. The German firm also notes that it will be possible to produce environmentally friendly hydrogen from natural gas. Wintershall Dea announced that the deal was closed on May 27 and that it was approved by the Federal Antimonopoly Service of the Russian Federation.
Volgodeminoil JV was founded in 1992. It produces oil and gas at 12 fields in the Volgograd and Saratov regions. In 2015, the joint venture reached its peak production of 573.8 thousand tons. In 2020, production fell to 293.4 thousand tons, and revenue fell by half, to 5.6 billion rubles, net profit decreased 2.7 times, to 1 billion rubles.