Wintershall Plans Major Global Investment

18 March 2010 (Last Updated March 18th, 2010 18:30)

Germany's BASF subsidiary Wintershall plans to invest billions of euros in oil and gas exploration to meet what it hopes will be European demand recovery. Wintershall chief executive Rainer Seele said he expects the current global oversupply and weak demand to end in three years when mo

Germany's BASF subsidiary Wintershall plans to invest billions of euros in oil and gas exploration to meet what it hopes will be European demand recovery.

Wintershall chief executive Rainer Seele said he expects the current global oversupply and weak demand to end in three years when more Wintershall long-term projects can come into play, reports Reuters.

The company said it has earmarked over €3bn ($4.1bn) over the next three years for exploration spending in Russia, Norway, Argentina and Libya.

Wintershall sales unit Wingas, a 50 / 50 joint venture between Wintershall and Gazprom, will spend €1.5bn ($2.04bn ) in continental Europe on a network expansion of gas pipelines and underground storage facilities.

Wintershall earnings have been hit by falling oil prices, despite the rise in oil and gas exploration volumes and sales last year as Wingas explored new customers, particularly those outside Germany.