BASF and LetterOne have signed a business combination agreement merging their oil and gas businesses to create Wintershall DEA, Egypt Oil & Gas reports.
The merger is still pending customary regulatory approvals, which are expected to take place in early 2019.
Should it go ahead, the merger would be the largest in the European oil and gas sector in over a decade.
Wintershall DEA would be active in twelve countries in Europe, North Africa, Latin America, and the Middle East, making it the biggest independent European exploration and production (E&P) firm.
The merger’s output is projected to reach between 750,000 and 800,000 barrels of oil equivalent per day (boe/d) in the early 2020s, according to the company’s executed business plan.
Maria Moraeus Hanssen, DEA’s CEO, explained that the merger would be very interesting from Egypt’s point of view.
“We will take more commitments, more investments, and do more in Egypt than what we have been able to do in the last couple of years,” Hannsen said during a press conference in Cairo.