Harbour Energy Buying Germany’s Wintershall Dea for $11.2 Billion

The global oil and gas industry’s merger and acquisition arena is ending 2023 with a bang.

Source: Harbour Energy.

London-based Harbour Energy is buying Germany’s Wintershall Dea’s upstream assets including those in Norway, Germany, Argentina, and Egypt.

The $11.2 billion cash-and-stock deal is Europe’s biggest upstream move made in several years and excludes the seller’s Russian assets which the Kremlin seized by decree only a day earlier.

Harbour said the combined company will have a production profile surpassing 500,000 BOE/D.

Company reports show Harbour’s production to be about 208,000 BOE/D, 90% of which is from the UK offshore, while Wintershall said earlier this year it was aiming to produce between 325,000 and 340,000 BOE/D. About half of Wintershall’s total production comes from its projects offshore Norway.

Wintershall’s other assets in the deal are in Denmark, Mexico, Libya, and Algeria. Harbour will also be taking over Wintershall’s European licenses for carbon capture and storage projects with the potential to store more than 10 mtpa.

Harbour Energy was initially formed in Houston as an investment vehicle and became a force in the European upstream sector after its 2021 merger with UK-based Chrysaor which just a year earlier had merged with fellow UK offshore producer Premier Oil.

"Today’s announcement marks Harbour’s fourth major acquisition and the most transformational step yet in our journey to build a uniquely positioned, large-scale, geographically diverse independent oil and gas company,” said Linda Cook, the CEO of Harbour, in a statement.

She added that the acquisition will lower Harbour’s carbon intensity along with shifting its production profile toward more natural gas.

Terms of the transaction include Harbour covering $4.9 billion in Wintershall bonds along with $4.15 billion in newly issued equity. German chemical giant BASF, the majority owner of Wintershall, will own 46.5% of Harbour and nominate two directors to the combined company’s board.

Pending shareholder and regulatory approvals, the deal is not expected to close until the final quarter of 2024.

The acquisition follows another European megadeal struck in June when Italy’s Eni announced the purchase of the London-listed Neptune Energy for $4.9 billion.