DEA at a Glance

Established in Germany in 1899, DEA Deutsche Erdoel AG (“DEA”) is an international exploration and production company producing natural gas and crude oil, with a regional focus on Northwestern Europe and with selective investments in North Africa. Headquartered in Hamburg, Germany.

The company holds 2P reserves of 667mmboe as of 2016YE. For the twelve month ended December-16, DEA produced an average of 138kboe/d, generated revenues of EUR1,476m, EBITDAX of EUR776m and had net debt/EBITDAX of 2.3x.

DEA is wholly owned by LetterOne, a private Luxembourg-based investment vehicle and was acquired in March 2015 from RWE for a consideration of USD5.5 bn.

Recent Developments Since New Ownership

Since 2015 DEA has strengthened its portfolio towards North Western Europe, namely in Norway:

  • In 2015, DEA acquired E.ON E&P Norge AS, adding 94 mmboe of 2P reserves and 50 kboe/d to 2015 production, and concurrently completed the sale of its UK assets to INEOS (net increase of 31 mmboe net 2P reserves and 28 kboe/d of production) 
  • In October 2016, DEA sanctioned its first operated field development in Norway, Dvalin
  • In December 2016, DEA acquired participating interest in seven licenses from Engie E&P Norge AS, including 20% increased interest in the Njord field, adding 35mmboe of 2P reserves in addition to a significant resource base
  • Early January 2017, DEA increased its share in the Dvalin development project to 55%, taking over 10% from Maersk Oil and another 5% from Edison, increasing 2P reserves by 16mmboe 
  • In March 2017, DEA sanctioned the development of the Njord area

In addition, DEA has continued to optimise its capital structure:

  • In September 2016, DEA received its inaugural ratings of BB- by S&P and BB by Fitch
  • In October 2016, DEA issued its debut €400m Senior Unsecured Notes due in 2022

Looking Ahead

  • Production of key development projects is expected to commence in 2017, the West Nile Delta (Egypt) in Q2 2017 and the Reggane Nord (Algeria) in H2 2017
  • DEA will continue to manage its asset portfolio to achieve an optimal balance of growth and cash flow generation

DEA Strategy

  • Grow production and execute key projects
  • Increase company value through balanced organic & inorganic growth
  • Focus on costs and capital efficiency
  • Deliver high QHSE standards and sustainability of operations

Reserves (WI)

Germany/Denmark Norway Egypt/Algeria
132 mmboe 300 mmboe 235 mmboe

Production (WI):

Germany/Denmark Norway Egypt/Algeria
39 kboe/d 63 kboe/d 36 kboe/d

Germany & Denmark

Largest oil producer in Germany with total oil and gas production(1) of 36kboe/d. Key assets include: Mittelplate/Dieksand (50% WI) – largest oil field in Germany, Völkersen (100% WI) – second largest gas field in Germany

Norway

Over 40 years of track record with 63kboe/d of production(1). Key assets include: Skarv (28.1% WI), Snorre (8.57% WI), Dvalin (55% WI)

Egypt & Algeria

Presence of over 40 years in Egypt with 36kboe/d of production(1). Key assets in Egypt and Algeria include: West Nile Delta (17.25% WI), Disouq (100% WI), and Reggane (19.5% WI)