Wintershall Noordzee announces business transformation Reorganization process to build resilience begins
Rijswijk. Wintershall Noordzee, a 50:50 joint venture between Wintershall Dea and Gazprom International, has started to optimise its core activities and streamline its project portfolio and organization in order to become a leaner, more efficient and resilient gas and oil company. Today, the Management Board has informed the staff of the further steps in the previously announced transformation plans.
The Dutch E&P industry is facing several challenges: historically low gas prices, an unforeseen slow permitting environment driven by the nitrogen impasse, a loss in competitive advantage compared to surrounding countries where governments strongly stimulate the sector, exploration activities at a record low, and a postponement of the increased tax deduction for investments.
Optimized project portfolio
Building on the long-established skills and capabilities of the team, the future of Wintershall Noordzee’s business will be shaped by an optimized production and an attractive project portfolio. We will seek to strengthen our core areas, leverage our extensive decommissioning and re-use expertise and will focus on building tangible opportunities in energy transition solutions such as CCUS. By doing so, Wintershall Noordzee will be transforming itself into an organization fit for the future, combining resilience in its gas and oil operations and development with activities in the energy transition space.
“The strength at the heart of WINZ is our people, and as we move through this transformation journey, we unfortunately cannot take everyone with us. It is with great regret that we will have to say goodbye to highly valued colleagues who have helped over the years to establish Wintershall Noordzee as the company it is today”, said Robert Frimpong, Managing Director of Wintershall Noordzee. “Sustained lower for longer oil and gas prices, combined with a decline in overall demand and slow permitting environment, have not only affected our industry but have also had an adverse impact on our company and the way we operate”, Frimpong added.
Leaner and more efficient activities
Previous adjustments to the business have had positive effects, however in a dynamic and increasingly challenging environment in the southern North Sea we also need to continue to be proactive, flexible, and adaptive in how we operate our business. “Until now we have adapted through timely cost optimisation and the introduction of smarter ways of working in both our on- and offshore operations. These steps have had positive effects”, explained Robert Frimpong. “However, we now need to make further necessary adjustments to both our activities and organisation.”
Wintershall Noordzee intends to reduce its staff by about one third over the next nine months in full consultation with the employee works council. The reduction will impact both employees and contractor positions. The envisaged implementation timing of the restructuring process is in the course of the 1st Quarter 2021.
About Wintershall Noordzee B.V.
Wintershall Noordzee B.V., which is based in Rijswijk, the Netherlands, was established in 1965 and is a Joint Venture between Wintershall Dea GmbH (50%) and Gazprom EP International B.V. (50%). One of the largest producers of natural gas on the Dutch continental shelf, Wintershall Noordzee operates 15 producing platforms and 4 subsea installations in the Dutch, English, German and Danish sectors of the North Sea.