The German energy company Wintershall said Wednesday it aims to produce more this year by focusing on low-cost opportunities. File photo by A.J. Sisco/UPI. |
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March 22 (UPI) -- German energy company Wintershall said it expects good returns this year and a steady course for oil prices supporting expansions for oil and gas production.
Mario Mehren, the CEO of the German company, said the business climate is still challenging despite some signs of market recovery. The price of oil hit historic lows last year, and recovered to around $55 per barrel for the early part of 2017, but has come under pressure again because of broader economic concerns and lingering signs of an oversupplied market.
"The company intends to continue building on selected projects, especially in low-cost production regions such as Argentina and Russia, but also in Norway," he said in a statement. "Overall, Wintershall plans to invest some $4.7 billion to step up its oil and gas activities by 2021."
Last year, Wintershall said its production reached a "historic level" of 165 million barrels of oil equivalent per day. Over the last 10 years, it's increased its oil and gas production by around 50 percent and doubled its commercially recoverable oil and gas reserves to 1.62 billion barrels of oil equivalent.
In February, the company said it was showcasing its commitment to Norway by submitting plans for offshore development at the Skarfjell field in the Norwegian waters of the North Sea. The company said most of the hydrocarbons there are slated for exports and development will utilize infrastructure already nearby in Norwegian waters.
The Skarfjell field is expected to yield between 60 million and 140 million barrels of oil equivalents.
Outside of its low-cost production areas, Wintershall said its portfolio strength was offset somewhat by continued problems in Libya, where national security issues are dragging on the company's production volumes.
Nevertheless, Wintershall said a focus on efficiency in a new market era would pay off as it expects crude oil prices to average $55 per barrel for 2017.
"We have solid foundations for profitable growth with our reserves basis," Mehren said.
