Exploration & Production
- Sales and earnings improve considerably, primarily thanks to continuous crude oil production in Libya
- Crude oil and natural gas production increase
- Outlook 2013: volumes-driven increase in sales and earnings
We improved sales in the Exploration & Production business sector by €2,148 million to €5,330 million. This significant growth is primarily attributable to the continuous production of crude oil in Libya. There, we were able to increase the daily production rate faster than expected, thanks to higher availability of the export pipeline. Production volumes were once again at more than 80% compared with the production level before the unrest in the spring of 2011.
At just under $112 per barrel, the average price for Brent crude oil remained around the same level as 2011. The stronger U.S. dollar, however, led to an increase of €7 per barrel in euro terms, resulting in an oil price of €87 per barrel.
Our crude oil and natural gas production rose by 27% to 144 million barrels of oil equivalent (BOE) as a result of the developments in Libya.
Because of the significantly increased contribution from Libya, income from operations amounted to €3,422 million, exceeding the previous year’s level by €1,736 million. This included €1,880 million in income taxes on oil production in Libya that are non-compensable with German corporate income tax, an increase of €1,441 million.
In 2012, we completed the drilling of 20 exploration and appraisal wells in the search for new oil and natural gas deposits, of which 10 were successful. Exploration expenses rose by €38 million to €222 million compared with the previous year.
Proven crude oil and natural gas reserves totaled 1,157 million BOE at the end of 2012, matching the level of the previous year. We replenished 100% of the volumes produced in 2012. The reserve-to-production ratio is 9 years (2011: 11 years). This is based on Wintershall’s share of production in 2012 and refers to the reserves at year-end.
We expect our sales and earnings in 2013 to rise, mainly as a result of higher production volumes in Russia, Norway and Libya.