GROWTH. PARTNERSHIP. TECHNOLOGY.

WINTERSHALL.

2016

SUCCESSFUL“ON COURSE WITH

PARTNERSHIPS ANDTECHNOLOGICAL EXPERTISE.”

Dear Readers,

Energy provides the basis for prosperity and growth. Even in 25 years time fossil fuels – in particular crude oil and natural gas – will continue to provide around three-quar-ters of the global energy mix. The worldwide requirement is growing but at the same time the reserves are limited. Here we need innovative technologies to produce more efficiently from conventional reservoirs. In addition, unconventional reserves such as shale gas and shale oil will also help to secure supplies.

The E&P sector is currently undergoing radical upheaval in many different respects. The markets for oil and gas are turbulent and will probably remain so. A lower oil price means that E&P companies must work even more efficiently. However, Wintershall is very well positioned to master these challenges.

Through exploration, partnerships and technological exper-tise, we are expanding our business and will continue to grow at the oil and gas sources. And we will do that in the areas where we are most familiar: in our core regions in Europe, Russia, North Africa and South America as well as increasingly in the Middle East.

We have been working in close partnership with Russia’s Gazprom for more than 25 years. Together we are making a significant contribution to securing Europe's energy supply, in particular through expanding the natural gas produc-

tion in the Achimov formation in Western Siberia. We are also expanding our partnership with Statoil in Norway. For example, we have already taken over the operatorship of the Brage platform and the Vega production field. The Maria field will become Wintershall’s first self-operated develop-ment project to be brought into production in Norway. We will therefore be significantly increasing our production in both the North Sea and Russia.

In our international energy partnerships we impress through our efficiency, performance and innovation. A large part of the new and pioneering technologies are developed by us in our home region of Germany, where production has always been geologically complex and challenging. Domestic production therefore provides our centre for continual inno-vations.

The successes in recent years show that we are right in terms of the company’s direction. We will therefore continue to grow through strategic partnerships and innovative tech-nologies – direct at the major oil and gas sources.

Mario Mehren Chairman

Successful at the source through efficiency, innovation and performance

3

Foreword

The company

WE SEARCH FOR OIL AND GASIN THE REMOTEST REGIONS – AND FIND IT

Argentina – In the Aguada Federal block we have drilled preliminary exploration wells in the Vaca Muerta formation. The country offers considerable potential in terms of unconventional crude oil and natural gas reserves.

IN FOCUS

Technology

WE WORK IN NATURE –AND ALSO INCREASINGLY WITH NATURE

Germany – In Bockstedt in northern Germany we are testing our biode-gradable biopolymer Schizophyllan, which is derived from a natural fungus.

IN FOCUS

Partnership

Whether we’re facing force 8 winds or plus/minus 50 degrees Celsius – we feel at home in our core regions. We brave these extremes with determination, perseverance and our technological expertise. That’s something our partners also value.

FOR GOOD PARTNERSHIPSWE ALWAYS GO THE EXTRA MILE

IN FOCUS

Wintershall is Germany’s largest internationally active crude oil and natural gas producer and has more than 120 years of drilling experience. The company employs around 2000 staff worldwide from more than 40 nations.

We deliberately focus on selected core regions where we have built up a high level of regional and technological expertise. As a technology driven E&P specialist, our center for innovation and research is Germany. Technologies and innovations help us to make an impact world-wide and establish international partnerships.

We are consistently investing in the develop- ment of both new discoveries and existing fields, whereby we never compromise on the high demands that we place on environmental protection and occupational health and safety.

OUR HISTORY

OUR PARENT COMPANY

OUR GOALS

OUR CORE REGIONS

OUR VALUES

• North West Europe• Russia• North Africa• South America• Middle East

• We want to grow further at the source – through exploration, strategic cooperation and technological expertise, for example in the EOR (Enhanced Oil Recovery) sector.

• From 2018, we want to produce 190 million barrels of oil equivalent (boe) per year.

OUR BELIEF

• For us, environmental protection and occupational health and safety are always considered to be as equally important as economic aspects.

• We are developing processes in order to recover and utilize resources even more efficiently and to minimize the impacts on the environment.

• We conduct our activities in compliance with inter national conventions, regional and national legislation and our own self-imposed high standards, which are frequently even more stringent than the legal requirements.

• We are creative, have the courage to pursue extra-ordinary ideas, form value-creating partnerships and are technologically innovative.

• We are open, we value diversity and foster dialogue.• We act responsibly as part of society, work safely and

reliably, and never compromise on safety.• We are entrepreneurial and transform market needs

into customer solutions.

We have been a wholly owned subsidiary of the worldwide leading chemical company, BASF, since 1969.

Wintershall was founded as a company for mining potash in 1894. The company name is made up of the family name of the company founder, Carl Julius Winter, and the Germanic word “Hall”, meaning salt. We have been producing hydrocarbons since 1930 and have been focusing on the oil and gas sectors since 1970.

COME ALONE. BUT FROM THESUCCESS DOESN’T

ROUGHLY 2000 EMPLOYEESAROUND THE WORLD

10 11

The company

• In addition to its activities in Germany, Wintershall also holds the exploration rights for around 140 licenses in the North Sea.

• With around 50 licenses – of which more than half are as the operator, we are one of the largest license holders in Norway.

• We have been active in the Netherlands since 1965. As one of the largest natural gas producers in the country, we operate more than 20 offshore platforms there. In order to manage the operatorship efficiently, Wintershall controls these platforms from a high-tech, remote-controlled operations center in Den Helder.

• Wintershall has shares in six licenses in the UK. The Wingate natural gas platform has been producing natural gas there since 2011.

• Wintershall has two licenses in Denmark, where it is preparing the development of the Ravn field.

• About one third of all known natural gas reserves are situated in Russia. Wintershall is the first German company to produce natural gas directly in Western Siberia.

• In Novy Urengoy in Siberia, which is about 3,500 kilometers north-east of Moscow, we are producing natural gas and condensate from the technically highly challenging Achimov formation in the Urengoy field (Block IA) as part of our Achimgaz joint venture with Gazprom. The partners also want to jointly develop the highly promising Blocks IV and V.

• Together with Gazprom, Wintershall is producing gas from the Yuzhno Russkoye natural gas field.

• The natural gas field commenced operation in 2007 and reached a plateau production of 25 billion cubic meters of natural gas per year by the middle of 2009.

• In the Volgograd region, we are running the Wolgo-deminoil joint venture with Lukoil. We are currently producing crude oil from seven fields, are developing another field, and are preparing two other fields for development.

• In South America, important gas reserves lie in Argentina. Wintershall has been active in the country since 1978.

• The company is currently involved in 15 oil and gas fields in the Neuquén, Mendoza and Tiera del Fuego provinces.

• Wintershall is the fourth largest natural gas producer in the country.

• Unconventional reservoirs in Argentina offer considerable potential, specifically in the Vaca Muerta formation in the Neuquén Basin. Here, Wintershall is involved amongst others in the highly promising Aguada Federal block.

• About 50 percent of the worldwide oil and gas reserves can be found in the Middle East region. Wintershall is developing its presence in the region and, in 2010, opened representative offices in Abu Dhabi. In 2012, we took over as operator the technical appraisal of the Shuwaihat sour gas and condensate field in the United Arab Emirates. Initial drilling was completed in 2015.

• Wintershall has been actively involved in the exploration and production of crude oil in Libya since 1958.

• Wintershall is currently producing in the eastern Sirte Basin, which is around 1,000 kilometers south-east of the capital, Tripoli, in eight onshore oil fields in the C 96 and C 97 concessions.

• We are also involved in the production from the Al-Jurf offshore platform in Block C 137 off the country’s north-west coast.

NORTH AFRICA

MIDDLE EAST

RUSSIA

SOUTH AMERICA

EUROPE

WE’RE AT HOMETHROUGHOUT THE WORLD

12 13

The company

GERMANY IS OURHOME COUNTRY

• Together with DEA, we have been producing oil in Germany’s Wadden Sea since 1987.

• For this purpose we have constructed the Mittelplate artificial drilling and production island, which is secure against all the forces of nature.

• The production in the Wadden Sea, which is a sensitive ecosystem and world heritage site, has always been incident-free.

• In the Landau region, we have been producing oil from one of the largest fields in the Upper Rhine Plain since 1955.

• We have so far sunk about 200 wells, of which 70 are still in operation.

• We are aiming to maintain a stable level of production in the midst of the Rhineland- Palatinate vineyards for the next few years.

• We have been producing crude oil in the Großaitingen region since 1979.

• Several successful drilling operations have enabled us to increase our production from the Aitingen reservoir over many years.

• We are currently investigating whether we can reactivate old oil fields in Bedernau and Lauben in Lower Allgäu, as well as in the Upper Swabia region, which are no longer being used for producing oil.

• In 1974 the natural gas field was discovered in the so-called Entenschnabel (“Duck’s Bill”).

• We are the operator of A6-A, the only gas production platform in the German North Sea.

120 years ago, Carl Julius Winter and Heinrich Grimberg founded the Wintershall drilling company. The company name is made up of the family name of the company founder, Carl Julius Winter, and the Germanic word “Hall”, mening salt. During the first few years, the company mined potash until oil accidentally leaked into one of the potash mining shafts in 1930. From this point onwards we also produced crude oil and, from 1951, natural gas. Today we are Ger-many’s largest internationally active crude oil and natural gas producer and belong to the BASF Group.

The production of oil and gas in Ger-many is particularly challenging as a result of the complex geological and legal conditions. For us they have provided the basis for continual inno-vations – innovations with which we impress worldwide and establish in-ternational energy partnerships.

Change of perspective with

WintershallUnder this motto, the hot air balloon

provides a very special view of Barnstorf and the domestic production regions.Wintershall has been supporting the

traditional Barnstorf Balloonist Festival for many years.

AITINGEN

• Our worldwide company headquarters is located in the heart of Germany.

• This provides the workplace for one third of our roughly 2000 employees, who come from more than 40 countries.

• Kassel is a cultural and economic center in North Hesse.

KASSEL

• In 1953 we founded the Wintershall oil production facility in Barnstorf and have been producing crude oil and natural gas here ever since.

• Here we bundle our German crude oil and natural gas activities.

• We inaugurated the international drill core storage facility in 1986 and expanded it in 2012.

BARNSTORF

ENTENSCHNABEL

MITTELPLATE

• We have been producing crude oil on the German-Dutch border for more than 70 years.

• For 35 years, we have been utilising steam flooding technology here and thus maintained production at a constant level.

EMLICHHEIM

LANDAU

We have been active in Germany for more than 120 years. Domestic production still contributes to securing Germany’s natural resources. However, production in Germany is very complex. That is why we are developing and testing new pioneering technologies here.

14 15

The company

7:30 am – the alarm clock rings. Like many other everyday objects, it is also made of crude oil. This is because natural gas and crude oil are used not only to travel to work and heat our homes, but also form the basis of the chemicals that are important com-ponents in a vast variety of objects: poly vinyl chloride, polyurethane, poly-styrene, polyethylene, polyamide and ethylene oxide.

Crude oil is used as a base material in laptops, sofas and toothpaste. It is also used in floor coverings, window frames, medical devices, pharma-ceutical products, foam mattresses, watering cans, buckets, Tupperware containers, vacuum cleaners, syn-thetic textiles, detergents and clea-ning agents, paints, cosmetics, TV

screens, remote controls, CDs, watch-es, fax machines, credit cards, and so on …

Crude oil and natural gas are the cardiovascular system of our indus-trial society. Our prosperity is based on sustainably securing energy sup-plies. As fuel and base materials for industry, hydrocarbons will continue to make an important contribution during the following decades. That makes crude oil one of the most valu-able fossil fuels in the world. That will remain the case in future. Natural gas has an equally firm place in our future. Because of its low СО₂ emissions and excellent carbon footprint compared with other fossil fuels, it is primarily used for heating and power genera-tion. At the same time, natural gas is

becoming increasingly important as a natural resource for the chemical industry and could also revolutionize the plastics industry.

The high status of oil and gas as indis-pensable natural resources and fuels means that we are continually looking for new reserves as well as innovative solutions to make the most of already known reservoirs. Our technological expertise in accessing difficult-to-de-velop reserves represents an impor-tant competitive advantage in this re-gard. Our expert teams are inventive, think economically and ecologically, and act reliably. They continuously adapt their technological develop-ments to the chan ging challenges.

One thing is certain: without oil and gas, there would be a lot missing from many people’s everyday lives.

LOTS OF THINGS AREMADE FROM CRUDE OIL:

THE FUTURE FOR EXAMPLE

During the course of the day we come into constant contact with crude oil and natural gas. Most people are aware that the natural resources are used as fuel or for heating, but not necessarily that they are also used in mobile phones, laptops or sofa covers.

AND NATURAL GAS

ONE DAY WITH CRUDE OIL

… 45% of the components in wind turbines are made from oil or products from the petrochemicals industry?

… it’s not just packaging that

requires oil but also medicines?

… 4% of all crude oil is transformed into plastics?

… a single laptop contains

11 liters of oil?

… a single sofa even contains

60 liters of oil?

Did you know that …

… natural gas-fired heating systems could make an enormous contribution to achieving the climate protection goals?

16

The company

WE KNOW HOW TODO THINGS

Technology

It is a long route from the discovery of oil and gas resources to their optimal development and safe production. The decisive factor in all phases of the E&P life cycle is technology. Wintershall continually strives to use the most in-novative and effective methods in this regard.

The use of state-of-the-art technology is important to ensure not only safe oil and gas production but also that the extraction remains efficient even at low oil prices.

The successful deployment of exist-ing technologies also enables us to economically develop resources that a few years ago were still considered impossible to extract. Or to find oil and gas in areas where many industry in-siders believe there is not much more to get. For example, thanks to ad-vanced processing and the new inter-pretation of seismic data, Wintershall’s experienced geological team in Sta-vanger has made outstanding discov-eries with the Maria and Skafjell fields.

We have also mastered production un-der extreme climatic conditions: in the desert regions of Libya and the Middle

East we face sandstorms and temper-atures up to 50 degrees Celsius, in Siberia we produce natural gas at mi-nus 50 degrees Celsius and with per-mafrost, and in the North Sea we defy high waves and strong winds with the offshore production. Each and every day Wintershall employees demon-strate that they are using technology responsibly, such as special drilling techniques in Russia, to produce oil and gas safely in harmony with the en-vironment.

Our innovations also enable us to pro-duce oil profitably for many more years from older fields. In Emlichheim on the German-Dutch border, Wintershall has recovered more oil from the reservoir using steam flooding, where 300 de-gree hot steam is forced under pres-sure into the reservoir. This makes the dense oil less viscous so that it flows better to the well head – and thus ena-bles more oil to be extracted.

We have developed our technological expertise in our home country, Ger-many. Here Wintershall has been suc-cessfully searching for and producing crude oil and natural gas for more than 80 years. The company, which is

Germany’s largest internationally ac-tive crude oil and natural gas produc-er, has to date produced more than 40 million tons of domestic crude oil and 75 billion cubic meters of natural gas here.

Right from the beginning, Germany has also been Wintershall’s center for innovation and research. We are con-stantly developing new and pioneer-ing technologies here. The complex geological and legal conditions make domestic production technologically complicated and often only possible using highly developed special tech-nology. Continuous innovation as well as extremely high safety and environ-mental standards are a must here. Those are the trump cards with which we impress worldwide and establish international energy partnerships.

OUR EXPORT HIT:TECHNOLOGYMADE IN GERMANY

Making new discoveries in old fields, securing pro-duction despite desert and arctic conditions, and producing even more oil from existing reservoirs: Wintershall manages all these thanks to innovative technologies. The necessary know-how for this is mainly produced in Germany.

Schizophyllan innovation – The biopolymer, with which Wintershall aims to recover more oil in an environmentally friendly way, is produced

by BASF in Ludwigshafen. The product is being tested in the Bockstedt oil field in

northern Germany.

20 21

Technology

A GLIMPSE

WE GET OILSTEAMED UP

INTO THE WORLD OF OURTECHNOLOGIES

Our portfolio of applied technologies covers a wide spectrum, ranging from tried and tested methods such as steam flooding and hydraulic fracturing to unusual innovations such as the use of fungus to improve oil production. Wintershall’s aim:To find a suitable technical solution for every challenge.

Collaboration with BASF – Compared with our competitors, we have a decisive advantage in the race for technical innovations: Wintershall is a wholly owned subsidiary of BASF, the largest chemical company in the world. The first-class research work, the expertise in developing products and BASF’s im-mense resources therefore have a decisive influence on the research and development at Wintershall. To-gether we are researching polymers such as Schizo-phyllan, which enables more oil to be recovered from existing reservoirs, we are working on better prop-pants and more environmentally friendly additives for hydraulic fracturing, and we are developing new methods for recovering heavy oil. We are therefore creating synergies, from which we both benefit.

Tight Gas – We can also call on our many years of experience in the production from complex reservoirs, such as with the production of tight gas: that is natural gas that has collected in small, poorly interconnected cavities in the rock (mostly sandstone). The natural gas is unable to flow freely to the wells through these less permeable rock strata. That is why the hydraulic fracturing method is used: it opens small, roughly five-millimeter-thin flow channels in the rock and thus makes the pro-duction possible. The technology is well tried and tested: Wintershall has been producing tight gas for more than 30 years in Germany, the Nether-lands, Russia and Argentina – without any nega-tive effects on the environment or drinking water.

Steam flooding technology – With more than 70 years of production, the oil field in Emlichheim near the German-Dutch border has actually long reached retirement age. However, it is still showing no signs of tiring, and Wintershall is still producing oil there at a constantly high level – currently around 160,000 tons of crude oil per year. That is due in no small part to the implementation of an innovative method: since 1981 we have been deploying steam flooding technology in Emlichheim. Here, hot steam at a temperature of 300 °C is injected into the reservoir at a pressure of 100 bar. In the porous stone it can easily spread out and warm up the dense oil, which becomes more vis-cous and therefore easier to extract. This technology is so effective that the Emlichheim field will also be able to supply Germany with crude oil for the next 25 years.

WE ARE ASTRONG FAMILY

FROM DENSE ROCKWE FREE NATURAL GAS

22 23

Technology

Sour gas – The production of sour gas is a complicated undertaking because it contains both hydrogen sulfide and carbon dioxide. Both components are highly corrosive, and hydrogen sulfide is also highly toxic. Those who want to produce sour gas must purify it while maintain-ing extremely high safety standards. Wintershall is a pioneer in this regard, and has already been recovering sour gas in Germany since 1961. For this purification, which is known as sweetening, Wintershall uses the BASF solvent MDEA, which removes the hydrogen sulfide form the gas. The “Claus process” then converts the hydrogen sulfide into pure sulfur, which is sold as a raw material for the chemical industry. This method has enabled us to successfully develop 16 sour gas fields and safely recover more than 20 billion cubic meters of sour gas.

Schizophyllan – it’s worth learning from nature. After all, nature has often already shown us the way when it comes to solving many of the techni-cal challenges currently being researched. This is also the case with Wintershall’s largest research project, which we are also working on together with BASF: the key to success is a simple fun-gus, the common split gill fungus (Schizophyllum commune). If you feed it with sugar and oxygen, it produces a biopolymer – a purely biological thickener. Depending on the reservoir, this Schizo-phyllan biopolymer enables up to 10 percent more oil to be produced – a huge step. You can find out what precisely lies behind this extraordinary tech-nology on the following pages.

RCO center – We are not resting on our laurels but are continually developing ourselves further. This includes the optimization of existing processes. Proof of this is provided by our Center for Remote Controlled Operations (RCO) in Den Helder in the Netherlands. The remote monitoring system, which is one of the most advanced systems of its kind in the world, controls the production operations of almost all the 20 plus offshore platforms operated by Wintershall in the southern North Sea. The sys-tem not only secures the efficient production of the offshore reserves but also enables the economic development of small and medium-sized fields in the southern North Sea. This has also enabled us to considerably reduce the number of flights to the platforms – which makes an enormous contribution to the safety of our staff.

Mittelplate – In the North Sea, we have proved for more than two decades that it is indeed possible to reconcile ecological and commercial interests with oil production. Together with the operator DEA, Wintershall has been jointly producing oil from Ger-many’s largest oil reserve, the Mittelplate offshore field in the ecologically sensitive Wadden Sea, since 1987 – and without any incidents. The artificial pro-duction island is completely sealed off by a steel and concrete caisson from the sensitive environment and thus provides reliable protection, for example against storm surges or ice drifts. In order to opti-mize oil production, the development of the field has been supplemented by highly deviated extended reach wells drilled from the mainland, which are technically extremely complex. With lengths of up to nine kilometers, these are some of the longest in the world.

WE CONTROL IN HARMONY WITH THE

BY SATELLITEENVIRONMENT

WITH NATURE’S HELP

WE PRODUCE CRUDE OIL

NATURAL GAS PRODUCTION

WE PRODUCE MORE CRUDE OIL

SOUR NATURAL GASWE SWEETEN

24 25

Technology

The “common split gill” is actually just a normal fungus. Schizophyllum com-mune, which is its Latin name, can be found in all the world’s forests where it grows on dead wood such as fall-en trees and seeks out the sunniest spots. This fungus, however, can do something that makes it particularly interesting for Wintershall: if you feed it with sugar and oxygen, it produc-es a biopolymer – a purely biological thickener. The gel-like substance can be used for oil production. It increas-es the viscosity of water, which is then forced into the oil reservoir to improve the crude oil yield. The thickened wa-ter can push more oil out from the rock pores. The reason: Adding the biopolymer gives the water a similar viscosity to oil. It therefore does not

The field test in BockstedtSchizophyllan is being used for the first time in the Bockstedt oil field. Here the polymer is mixed with reservoir water and pumped into the oil formation, thus enabling more oil to be recovered.

The sourceEverything starts with the Schizophyl-lum commune fungus, which can be found on deciduous and coniferous wood in forests all over the world.

In the laboratoryFor the researchers from Wintershall and BASF, the white, cotton-like part of the fungus is interesting. This pro-duces the Schizophyllan biopolymer. The brown fruiting body is only used for propagation purposes.

The productionSchizophyllan is produced at BASF in Ludwigshafen. The fungi and sugar are placed in a fermenter where they are stirred and aerat-ed with oxygen. This creates the biopolymer.

BIOPOLYMER

BIOPOLYMER + WATER OIL

FUNGUS+ OXYGEN+ SUGAR

The transportThe thickening agent is transported to Bockstedt in special tankers. Nearly 1 percent Schizophyllan is included in this so-called stock solution.

Under the earthBy means of an injection well, the mixture of biopolymer and reservoir water is injected into the oil formation. The Schizophyllan eventually reappears at the production wells – and hopefully so does more oil.

Closed material cycle The extracted mixture of oil, reservoir water and biopolymer is transported to Wintershall’s Barnstorf production facility. Here the components are separated from one another and treated. The biopolymer and water are then returned to Bockstedt.

flow so easily past the precious com-modity but forms a kind of front that pushes the oil ahead. This therefore makes it possible to produce up to ten percent more crude oil.

Wintershall recognized the potential of the biopolymer years ago. Together with BASF, the company is con-ducting research on the fungus and the biopolymer Schizophyllan. The intended added value: The product also remains stable in the reservoir at high temperatures and salt concen-trations, and thus has an advantage over synthetic polymers. But the most important thing is that Schizophyllan is biodegradable and therefore very environmentally friendly.

That is why the natural product can also be used in highly sensitive eco-systems such as the sea. This makes it an interesting product in, for exam-ple, Norway. There, all the substances used in offshore production must be biodegradable. Following many labo-ratory experiments, the first field trail has been under way since December 2012. The biopolymer is being de-ployed in the oil field at a specially built operating facility in Bockstedt in Lower Saxony. The test will show how effective Schizophyllan actually is for recovering crude oil.

SMALL FUNGUS WITH AN ENORMOUS IMPACT

Enhanced Oil Recovery (EOR) – a fungus that improves oil produc-tion: That is the starting point for Wintershall’s most important research project. The new, environmentally friendly technology will in future enable up to ten percent more oil to be produced.

Detailed information on Schizophyllan is available at:www.wintershall.com/research

Water vs. PolymerIf the natural pressure in the oil field is no longer sufficient, reservoir water is injected in order to improve the ex-traction. However, because it is usually much more fluid than the oil, over time the water finds ways to get past the oil.

OIL

BOCKSTEDT

LUDWIGSHAFEN

The polymer improves areal sweep bypassingSchizophyllan thickens the water, which can then displace the oil better and more evenly.

BIOPOLYMER + WATER

BIOPOLYMER + WATER

More oil with SchizophyllanIn future, the biopolymer could enable up to ten per-cent more oil to be recovered from existing reservoirs throughout the world – an enormous step.

26

Technology

WE KNOW IT’SBETTER TOGETHER

Partnership

Siberian winters are cold. Bitterly cold. But even in temperatures of mi-nus 50 degrees Celsius, the staff from Wintershall and Gazprom extract gas condensate from the ground in Novy Urengoy, which is situated in Western Siberia near the Arctic Circle. Day af-ter day they face extreme climatic and geological challenges. Together, they master these challenges with success.

The close and very successful part-nership with PAO Gazprom has now lasted for more than 25 years. It start-

Wintershall is investing billions in the Achimgaz joint venture. By 2018, it plans to bring production up to an annual plateau level of about eight billion cubic meters of natural gas and two million tons of condensate with over 100 wells. Both partners are harnessing their tech-nological expertise for the development of the difficult rock formations.

ed with natural gas trading, building gas pipelines and storage facilities, and later extended to E&P projects. In 2007 we become the first German company to produce natural gas di-rectly in Western Siberia itself – from the Yuzhno Russkoye reservoir in con-junction with Gazprom.

In 2003, we jointly set up the Achim-gaz joint venture company in Novy Urengoy as partners. The bundled technological expertise provided by the partners was required – here it was concerned with production from 4,000-meter-deep wells and complex rock formations. Since then the pilot phase has been completed success-fully and the entire field development of the block has begun. To produce the natural resources from the tech-nically very demanding Achimov for-mation in the Urengoy field, which is a conventional tight gas reservoir, one of the methods used is hydraulic frac-turing, a technology that Wintershall has applied successfully for decades at extreme depths and temperatures.

We also work successfully with the world’s largest natural gas pro-ducer outside Russia: in Libya, the North Sea and on infrastructure pro-jects such as Nord Stream. We hold shares in the transport companies

Gascade Gastransport, OPAL Gas- transport and NEL Gastransport. In addition, we share technical expertise and have been exchanging informa-tion with Gazprom for 20 years as part of the shared “Scientific-Technical Co-operation” project.

An exchange of assets was conclud-ed at the end of September 2015. Wintershall has acquired a 25.01 per-cent stake in Blocks IV and V of the Achimov formation in the Urengoy gas and condensate field in Western Siberia. The two blocks are being jointly developed by Gazprom and Wintershall. In return, Wintershall has transferred its interest in the hitherto jointly operated natural gas trading and storage business to its longstand-ing partner Gazprom.

We also produce crude oil in Russia. Together with OAO Lukoil, we have been active for 20 years in the Volg-ograd region, a major transport hub and industrial heartland in southern Russia. Wolgodeminoil is the oldest joint venture between a Russian and a western European E&P company. Today, the joint venture company operates in three license areas in the Volgograd region across a total area of about 13,600 square kilometers. Intensive exploration activities are un-derway to find new reservoirs. Wolgo-deminoil already produces crude oil from eight fields and is preparing oth-ers for development.

SECURE SUPPLIES FROMTHE DEPTHS OF RUSSIA

Wintershall has been active in Russia for the last 20 years. We apply our technological know-how to joint projects with both Gazprom and Lukoil.

*Russian Standard Conditions (RSC)

JOINT PROJECTS IN RUSSIA

• Wintershall and Gazprom have been working together for 25 years.

• The Achimgaz joint venture is producing and is also being expanded. Blocks IV and V in the Achimov formation are also being jointly developed.

• Around 70 million cubic meters of natural gas* are produced daily from the Yuzhno Russkoye field.

• Oil has been produced in cooperation with Lukoil for 20 years.

280 daysa year there is winter in Novy Urengoy,

with an average temperature of minus 33 degrees.

EXTREME CONDITIONSREQUIRE GOOD PARTNERS

30

Partnership

The wind howls over the Norwegian North Sea. The Brage production plat-form is situated 125 kilometers off the coast. In October 2013, the platform’s nameplate was changed: instead of Statoil it now reads Wintershall, since we have now taken over the operator-ship from our strategic partner. But we can still benefit from the staff’s expe-rience, as the majority of the Statoil employees continue to work on Brage.

In 2014, Wintershall took over further shares in production fields from Statoil and has therefore increased its pro-duction in Norway from around 40,000 barrels of oil equivalent (boe) to more than 80,000 boe per day. Wintershall is also now involved in the highly prom-ising Aasta Hansteen development project and has taken over the oper-atorship of a second production field, Vega.

We also cooperate with Statoil on the Norwegian Continental Shelf on im-

portant future-oriented topics such as joint research to increase the oil recov-ery rate (EOR). Today we are already one of the largest license holders on the Norwegian Continental Shelf.

Our Center for Remote Controlled Operations (RCO) is based in Den Helder in the Netherlands. We control around 20 platforms from here using a state-of-the-art remote monitoring system. Rijswijk, near The Hague, is home to a company-wide Compe-tence Center for Off shore Technology where, amongst other things, we are working on developing our shallow water expertise.

We also work together with DEA in the North Sea, as well as with Statoil. Our Mittelplate production island is unique – and the only drilling and oil production rig in German waters. It produces crude oil in the Wadden Sea, a UNESCO world heritage region in Schleswig-Holstein, and is a prime example of how the extraction of nat-ural resources and environmental pro-tection can go hand in hand.

We have been producing hydrocar-bons in Germany for more than 80 years and are a valued neighbor in the communities where we operate. Do-mestic production is important to us in light of the geological challenges. We have developed many innovative tech-nologies here. At the moment we are conducting research in Germany into the Schizophyllan biopolymer, which could enhance oil production. It is the challenging domestic production in Germany and Europe that makes us better and better all the time.

IN OUR HOME COUNTRY WE HAVE DISCOVEREDOUR STRENGTHS

Europe – in particular the North Sea – is one of Wintershall’s traditional core regions. In Norway we are deepening our partnership with Statoil. In the Netherlands we have established strong offshore operations creden-tials. In Germany, at the sites where we produce, we are a reliable neighbor.

We have come to stayOnce they have completed their hard work on the platform, the offshore workers can pursue their hobbies –

even at high sea. In 2013 Wintershall took over the operatorship of Brage.

• Wintershall has been produc-ing crude oil and natural gas in Europe for 80 years.

• Production in Germany is Wintershall’s technology driver.

In 2013, Statoil transferred the Brage production platform to Wintershall. This was the first time that the Norwegian company had transferred a producing platform,and the people who work there, to a new operator. To ensure everything runs smoothly, we worked together professionally and Statoil provided us with generous support in preparing for the transfer of operations. One year later, Wintershall also took over the operatorship of the Vega subsea production from Statoil. We are now drawing on this experience in the development of our own discoveries such as Maria and Skarfjell.

PREMIERE IN NORWAY

33

Partnership

The Arab Spring in 2011 saw the onset of a turbulent and challenging period for Libya. We are nevertheless con-tinuing to support Libya throughout these increasingly difficult times, not just through our long-term commit-ment as an oil and gas producer but also through our social engagement – with aid and social projects. How-ever, the developments in Libya have also left their mark on Wintershall: for example, since the middle of 2013 we have had to repeatedly shut down the oil production from our eight onshore oil fields in Concessions 96 and 97, which are located 1000 kilometers

A distinguishing feature of our production facilities in the Libyan desert is their high system availability, which is exceptional not just by local standards. This is very important because the turbulent situation in Libya’s export ports means that there are currently often only small time slots available for shipping the produced oil. This is where speed and flexibility count.

southwest of the capital Tripoli, as a result of blockades to the export infra-structure.

Our facilities in the Libyan desert are considered to be exemplary: we can process associated gas there instead of flaring it off. On the one hand this leads of course to a reduction in СО₂ emissions. On the other hand, howev-er, we also use it during the production process to boost the oil extraction by deploying it in a ‘gas lift’ facility. Here the associated gas is compressed and injected back into the ground at a depth of more than 3,000 meters. It then returns to the actual oil produc-tion tubing again via special valves. The effect of the rising gas bubbles enables a higher rate of oil production. The gas itself is not consumed but taken for processing and transported via pipelines to power stations at the coast.

Another measure to increase oil re-covery in developed fields is wa-ter injection. In the last few years a 142-kilometer-long desert pipeline

network has been built for this pur-pose to convey the water separated during the oil processing back to the fields, where it is injected back into the reservoirs.

And: In 2013 we became the first foreign E&P company to build a new pipeline through the desert. The 52-kilometer-long oil pipeline was commissioned by the Libyan Nation-al Oil Corporation and has now been transferred to the operator AGOCO.

RELIABLE AND

We have been active in Libya for more than half a century – time in which we have developed partnerships and excellent, neighborly relations. Because trust is important in Libya.

No more than

36 hoursare required by our Wintershall colleagues in

the  Libyan desert to feed oil back into the export pipelines – even after a prolonged shutdown of the

plant facilities.

DISCOVERY: TRUSTOUR MOST VALUABLE

WITH A RAPID RESPONSE

• Wintershall has been in Libya for almost 60 years.

• Production in the desert and off the coast.

• Repeated blockades of the export infrastructure since mid-2013.

• Pioneer in technology and environmental protection.

34 35

Partnership

Large white trucks trundle through the West Argentinean landscape. They are known as “vibroseis trucks” and are part of a three-month seismic cam-paign in the province of Mendoza to survey potential reservoirs. This area is believed to contain unconventional sources, and the prospect of produc-ing them is becoming increasingly in-teresting in Argentina too.

We are exploring the CN-V and Ranquil Norte blocks in the south of Mendoza

province as the operator. According to recent investigations, these blocks of-fer interesting potential in terms of the exploration and development of both conventional and non-conventional res-ervoirs (shale gas and shale oil) in two different levels of sedimentation. We can apply our technical and geologi-cal expertise here and also deploy new technologies.

In addition to the new activities in Mendoza province, we are also ac-tive in the very promising Vaca Muerta formation in the Patagonian Neuquén Basin. Unconventional reservoirs here offer considerable potential. Together with our partner Gas y Petróleo del Neuquén, we are examining the po-tential provided by the Aguada Federal block as the operator. We are initially planning up to six wells, and are in-vesting around 80 million euros in to-tal. Once the exploration phase has been successfully completed, the sub-sequent development of the formation could follow.

We have been active in Argentina for over 30 years. We are constantly working to improve the recovery rate of hydrocarbons from our fields to compensate for the natural decline in production volumes. To offset the nat-ural decline in the production from the Carina and Aries fields off the coast of Tierra del Fuego, from 2016 we will also be producing from the Vega Pleyade field. We have been working here successfully for many years with our partners TOTAL and PanAmerican Energy (PAE). Over the years we have also developed very close ties with the residents and communities, and today we support a wide range of social pro-jects as local partners.

WE ALSO TRAVEL TOREMOTE LOCATIONS TO FINDNATURAL RESOURCES

Wintershall is involved in the southernmost gas production world-

wide with the Carina and Aries fields off the coast of Argentina.

Wintershall wants to develop unconventional reservoirs such as shale oil and shale gas in Argentina. We have investigated potential areas with preliminary seismic surveys and exploratory wells.

• Active in South America for over 30 years.

• We are investigating the Aguada Federal block with its large shale oil and gas potential.

• We produce around 26 million barrels of oil equivalent (boe) per year from 15 crude oil and natural gas reservoirs.

Together with Gas y Petróleo del Neuquén, we will drill up to six wells in Neuquén province during the next two years. We have a 90 percent share and are the operator.

80 million eurosare being invested by us in the Aguada Federal

block in the east of Neuquén province, where we are exploring unconventional reservoirs.

PROMISING SHALE ROCK

36 37

Partnership

40 yearsexperience in the safe development

and production of sour gas reservoirs.

An abundance of natural resources. That’s what many people associate with the United Arab Emirates. And yet production is also becoming more challenging here too. However, since complex reservoirs are also becoming more and more interesting, this is an ideal time to step up our activities in the country.

In June 2012 we signed an agree-ment with the Abu Dhabi National Oil Company (ADNOC) and OMV on the technical evaluation of the Shuwaihat sour gas and condensate field. The particular challenge with this reservoir is that it contains so-called “sour gas” as well as condensate, i.e. gas with

a high proportion of hydrogen sulfide and carbon dioxide. That means the gas has to be scrubbed.

We have efficient and innovative tech-nologies to separate the gas from sour elements such as hydrogen sulfide and carbon dioxide. Special safety

measures are also a must with a well like this. As the operator, we contri- bute our technological expertise and the highest standards from more than 40 years’ experience in the safe devel-opment and production from sour gas reservoirs. We developed and perfect-ed this expertise at German sites such as Düste and Staffhorst.

WE ARE AIMINGHIGH WITH THE GERMANSEAL OF QUALITY

Wintershall is not a producer in the Middle East. Not yet. We are emerging on the scene as an attractive partner with know-how and technology.

SOUR GAS

• Wintershall plans to develop the Middle East region into a core region by means of technology and partnerships.

• Our technological expertise is sought after for difficult fields.

We are evaluating the Shuwaihat sour gas field in Abu Dhabi together with our partners ADNOC and OMV. We are the operator and are bringing our many years of experience with sour gas to the partnership. Shuwaihat is just one of many sour gas fields in the emirates.

EXPERTISE IN DEMAND

39

Partnership

In all our activities we aim to system-atically reduce the risks to people and the environment. In many instances we even go beyond what is legally required. We use efficient technolo-gies and environmentally friendly pro-cesses, and promote research and development in innovation. We use tailor-made HSE concepts (Health, Safety, Environment) in our activities and communicate them transparently and openly.

Before beginning any project we care-fully examine its possible impact. To-gether with experts, contractors and the relevant stakeholders, we develop processes and take measures to min-imize the impact on the environment and to use resources even more effi-ciently. The benchmark for our activ-ities is compliance with international conventions, national and regional legislation and our self-imposed high standards.

Our oil and gas production activities are as environmentally responsible as possible and we make sure that we maintain the highest possible safe-ty standards – onshore and offshore. Since 2012, one of our most effective methods of environmental and climate protection has been to stop flaring the associated gas from oil production in regular operations where we are the operator. The process of flaring not only destroys valuable energy resourc-es, it also releases large quantities of greenhouse gases. By eliminating this flaring process, Wintershall now saves around two million tons of СО₂ a year, which accounts for about 60 percent of the company’s total previous СО₂ emissions. This voluntary commitment goes far beyond the legal requirements and standards. Best of all, Wintershall uses the associated gas to generate electricity, heat and steam. This ener-gy is used to operate the oil produc-tion facilities and provides households with electricity.

In 2015 Wintershall joined the World Bank’s “Zero Routine Flaring by 2030” initiative, is sharing its experience and is continuing its commitment in this regard to ensure high environmental standards.

Wintershall works according to the highest standards, especially in re-gards to safety and environmental pro-tection. As part of a voluntary commit-ment, Wintershall has declared that it will forego the use of wells in Germany in drinking water protection areas. We also limit our drilling activities to a few central drilling sites, so that we use as little space as possible.

Our high standards apply to our activ-ities all over the world. In Emlichheim, for instance, we use a combined heat and power plant to produce and pro-cess crude oil. And in the Dutch North Sea we are recycling offshore plat-forms so that they can be used again for production operations elsewhere.

In short: Wintershall’s activities are en-vironmentally responsible. And safe.

OUR ACTIVITIES ARE

RESPONSIBLEAND SAFE

We recycle platforms and use associated gas instead of simply flaring it. In short, we constantly make sure that we produce oil and gas in an environmentally responsible manner. And that we protect the health of our staff. After all, they form the backbone of our company.

ENVIRONMENTALLY

ASSOCIATED GAS

Wintershall saves 2,000,000 tons of CO₂ by no longer flaring the associated gas from crude oil production in routine operations. Instead, we put the gas to good use, thereby showing how easy it can be to combine commercial and ecological objectives effectively.

INTELLIGENT USE OF

40 41

The company

We firmly believe that each and every employee plays a role in ensuring the overall success of our company. That is why we make it possible for our em-ployees to balance the needs of work, family and health effectively. For exam-ple, we offer company kindergartens with flexible opening hours and have supported the construction of an in-ternational school in Kassel, where the company is based. At the same time, we are aware that our responsibilities extend beyond our employees. Every year we donate money to charities and humanitarian organizations near the

places we operate. Our commitment to the arts is shown by our sponsor-ship of musical events, art exhibitions and special shows for painting, graph-ic design, photography as well as his-torical arts and crafts.

WE DO MORE THAN JUSTPRODUCE OIL AND GAS

More about Wintershall’s social responsibility at: www.wintershall.com/en/environment-and-society

Circus artistry meets social work – Since 2013, Wintershall has been providing support for the German-Russian Upsala Circus project for children and young people from disadvantaged social backgrounds.

Study trip to Germany – Emirati students from the Petroleum Institute in Abu Dhabi discover Wintershall technology “made in Germany”.

Volunteer Day in Kassel – Wintershall employees support

various projects in a spirit of social responsibility.

Summer highlight – Wintershall has supported the “Kulturzelt” festival in Kassel for more than 20 years.

A bridge between science and schools – Wintershall is supporting the “Science Bridge” project that brings the natural sciences into schools.

Work & Life – The flexible opening hours of the two Wintershall day care centers in Kassel help to reconcile

family and working life.

42 43

Social responsibility

RESPONSIBLE FOR THE CONTENT Wintershall Holding GmbH, Kassel

Please contact us if you would like to find out more about our company, require further information or have any questions about Wintershall.

Tel.: + 49 561 301-0 Fax: + 49 561 301-1702 info@wintershall.com

Wintershall Holding GmbH Friedrich-Ebert-Straße 160 34119 Kassel, Germany www.wintershall.com

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WINTERSHALL GROUP 2015 2014

Sales to third parties € million 12,998 15,145Investments and acquisitions¹ € million 1,823 3,162Income from operations (EBIT) € million 1,072 1,688Number of employees ² as of 31 Dec. 2,000 2,715

EXPLORATION AND PRODUCTION

Sales to third parties € million 2,809 2,938Investments and acquisitions¹ € million 1,769 3,092Crude oil production MMBOE ³ 40.0 30.6Natural gas production MMBOE ³ 112.9 105.2

NATURAL GAS TRADING⁴

Sales to third parties € million 10,189 12,207Investments and acquisitions ⁵ € million 54 70Gas volume sold by JVs (100%) ⁶ kWh billion 497.1 560.9 thereof WINGAS ⁶ kWh billion 438.7 480.9

2015 IN FIGURES IMPRINT

¹ Property, plant and equipment and intangible assets incl. capitalized exploration wells.² 2015 figure excluding employees from the divested trading and storage activities and Wintershall Noordzee B. V.³ Million barrels of oil equivalent.⁴ Through the asset swap concluded with Gazprom by 30 September 2015 without contributions from the trade and storage activities in the fourth quarter of 2015.

⁵ Property, plant and equipment and intangible assets.⁶ Includes gas volume sold to BASF.

Photo credits: Cover Wintershall/Justin Jin, p. 3 Wintershall/Peter Rigaud, p. 4/5 Alejandro Kirchuk, p. 6/7 Sven Döring, p. 8/9 Wintershall/Torsten

Silz, p.9 Wintershall/Alejandro Kirchuk, p. 10 Wintershall/Frederik Laux, p. 11 Wintershall/Thor Oliversen, p. 13 Wintershall/Christian Burkert,

p. 18/19 Wintershall/Justin Jin, p. 20/21 Wintershall/Christian Burkert, p. 21 Frederik Laux, Wintershall/Silvia Razgova, p. 28/29 Wintershall/Justin

Jin, p. 31 Wintershall/Hans-Jürgen Burkard, Wintershall/Justin Jin, p. 32 Wintershall/Morten Berentsen, David Hecker, p. 33 Wintershall/David

Hecker, p. 34/35 Wintershall/Sammy Naas, p. 35 Shawn Baldwin/action press, p. 36 Total, p. 37 Wintershall/Frank Schinski, Alejandro Kirchuk, p. 38

small Wintershall/Silvia Razgova, p. 38/39 Jack Dabaghain, p. 39 Wintershall/Silvia Razgova, p. 40 Thomas Rosenthal, p. 41 Shawn Baldwin/action

press, p. 42 Wintershall/Christian Burkert, Bernd Schoelzchen, Wintershall/Circus Upsala, p. 43 Wintershall/Harry Soremski, Bernd Schoelzchen,

Wintershall/Andreas Fischer.

SUCCESSFUL“ON COURSE WITH

PARTNERSHIPS ANDTECHNOLOGICAL EXPERTISE.”

Guaranteed use of FSC-certified paper.

GROWTH. PARTNERSHIP. TECHNOLOGY.

WINTERSHALL.

2016