BASF Report 2021 Management’s Report – Non-Integral Oil and Gas Business 93 Non-Integral Oil and Gas Business BASF holds 67% of the ordinary shares in Wintershall Dea AG; 33% – Germany (production, development, exploration) Wintershall Dea drilled 12 exploration wells in 2021. Of these, are held by LetterOne. This reflects the value of the exploration and – Libya (production) around 58% were successful. production businesses contributed by Wintershall and DEA. BASF – Mexico (production, development, exploration) additionally holds preference shares for the contribution of Winters- – Netherlands (production, development, exploration) Wintershall Dea is also active in gas transportation. This includes hall’s gas transportation business. Including preference shares, – Norway (production, development, exploration) interests in GASCADE Gastransport GmbH and OPAL Gas BASF has a shareholding of 72.7% in Wintershall Dea. – Russia (production, development) transport GmbH & Co. KG held by WIGA Transport Beteiligungs- – United Arab Emirates (development) GmbH & Co. KG, and the interest in Nord Stream AG held directly – United Kingdom (production, development, exploration) by Winters hall Dea. Wintershall Dea is one of five financial investors Macroeconomic environment for the Nord Stream 2 pipeline project. It is not a shareholder of Nord Stream 2 AG. The laying of Nord Stream 2 was successfully The price of a barrel of reference Brent crude oil averaged $71 in Wintershall Dea’s activities in 2021 completed, the pipelines have been filled with gas and Nord 2021 (2020: $42). Gas prices on European spot markets rose Stream 2 AG has applied to the relevant authorities for certification sharply and were at an all-time high at the end of 2021. The signifi- Wintershall Dea produced 231 million BOE (barrels of oil equivalent) to operate the pipeline. cant price increases in the second half of 2021 were driven by the in 2021 (2020: 227 million BOE), of which around 165 million BOE very strong recovery in global macroeconomic demand. of gas (2020: 162 million BOE of gas). This corresponded to a daily As part of its climate strategy, which was communicated in Novem- 2 production of 634 thousand BOE (2020: 623 thousand BOE). ber 2020, Wintershall Dea aims to achieve net zero emissions from upstream activities by 2030 and reduce methane intensity3 to 0.1% Equity-accounted income of the oil and gas business Several development projects were successfully completed in 2021, by 2025. Wintershall Dea is involved in the Greensand CCS project4 including the Norwegian projects Ærfugl Phase 2, Gråsel, and the in the Danish North Sea, which aims to store up to 8 million metric Wintershall Dea AG contributed –€344 million to net income from field development of Solveig. The Achim Development joint venture tons of CO per year. 2 shareholdings in 2021 (2020: –€890 million). This included impair- operated by Gazprom in Russia, in which Wintershall Dea holds ments and reversals of impairments totaling –€581 million, mainly a 25.01% interest, started production in the first quarter of 2021. As planned, in 2021 Wintershall Dea completed the integration that in connection with the planned divestiture of assets in Argentina In Egypt, production at the Raven field started at the beginning of began with the merger and was able to realize the intended syner- and due to adjusted price expectations. In the previous year, lower the year. gies. The IPO targeted for 2021 was postponed due to the market oil and gas price forecasts and changed reserve estimates led to environment. impair ments of €791 million. The Norwegian Njord and Nova projects continued and are expected to come on stream in 2022. The start of production for the Dvalin 1 Wintershall Dea conducts production, development and explora- project in Norway was postponed to the second half of 2022. At the tion activities in the following countries: beginning of 2022, Wintershall Dea reached an agreement on the – Egypt (production, development, exploration) sale of its 50% interest in the unconventional oil blocks it operates in – Algeria (production) Argentina and decided to terminate its operations in Brazil. – Argentina (production, development, exploration) – Denmark (production, exploration) 1 Development activities include projects before and after the FID (final investment decision) 2 Scope 1 and 2 emissions from upstream activities operated and non-operated by Wintershall Dea at an equity basis 3 100% volume of methane emissions of Wintershall Dea’s operated assets divided by the volume of the own operated gas marketed 4 Carbon capture and storage