Wintershall Dea has tightened its production guidance for 2021 into a narrower range of 630-640,000 b/d of oil equivalent after a strong first half. Wintershall Dea — whose production is focused on assets in Northwest Europe, Russia, North Africa, and South America — had said previously it was guiding for 620,000-640,000 boe/d of average output in 2021. Wintershall Dea’s production averaged 613,000 boe/d, up by 1% year on year. The company had signaled production would be impacted during the quarter by heavier than usual maintenance, especially in Norway. First gas flows from Dvalin were achieved in late 2020, but commercial startup has been pushed back into 2022 after production tests showed excessive mercury content in the gas.
Wintershall Dea was buoyed in Q2 by the stronger oil and gas prices, posting pre-tax profit of Eur636 million ($749 million), up by 140% year on year. European gas prices were also impacted by a colder than usual spring in Europe, the recent heatwave, and lower levels of electricity from wind, leaving storage levels significantly below the norms for this time of year. LNG cargoes that usually supported European gas supply were diverted to Asia where the industrial recovery took hold earlier than in Europe, driving demand for gas and increased prices. It can be expected that oil and gas prices will remain firm in the coming quarters, providing us with strong tailwinds to end the year in a very strong position. Wintershall Dea said its capex guidance for 2021 was unchanged at Eur1 billion-1.1 billion for development and production capex, and Eur200 million-250 million for exploration spend.