Oil and gas from Germany GDF SUEZ E&P Deutschland Seek out the new, secure the old – with tradition, technology and teamwork GDF SUEZ is now ENGIE Dear Readers, The energy sector is currently undergoing radical change. The energy transition is becoming a global movement, through the development of renewable energy sources on the one hand and improvements in energy efficiency on the other. We are also seeing diversification and a digital revolution in the energy market. Now more than ever, the energy transition is a reality – one to which our group is responding with ambitious plans and for which we bear a great responsibility. The GDF SUEZ group wants to be a key actor in the energy revolution and meet the challenges of the future head-on. We as GDF SUEZ E&P Deutschland are also part of this transformation process. This is because oil and gas from Germany remain important natural resources, even as the country moves forward with the energy transition. The public and the economy must be able to rely on a secure, affordable supply of energy despite fluctuations in feed-in volumes and the ongoing shortage of storage options for renewable energies. Dominique Bayen Managing Director of GDF SUEZ E&P Deutschland GmbH To accompany the changes in the energy sector, the GDF SUEZ Group has decided to change its name. From now on, GDF SUEZ is ENGIE. Our subsidiary has only just embarked on the journey towards a new name and corporate design. The design will change, but the legal name of our company will remain the same for the time being. This brochure will tell you more about the ENGIE Group and, in particular, the subsidiary GDF SUEZ E&P Deutschland. We hope you enjoy reading about our work, our history, our goals and our values. With best wishes, EDITORIAL 3 Germany has been our home for 127 years, but our expertise comes from around the world. 4 KOLUMNENTITEL KOLUMNENTITEL 5 Our company at a glance All figures are from 2014 ENGIE Group From drilling engineers to economists and safety experts, GDF SUEZ E&P Deutschland employs over 600 staff members who are all committed to ensuring the company’s success. The E&P in our name stands for the exploration and production of hydrocarbons. Our headquarters are located in the town of Lingen in Emsland, a region that has a long tradition in the oil and gas sector. Our employees are also active throughout Germany, in regions such as the North German Basin, the Altmark and the Rhine Valley. We produced 394,000 tonnes of oil and 6.1 terawatt-hours of gas in 2014. That equates to 16 percent of Germany’s oil production and 7 percent of its gas production. We therefore make an important contribution to domestic security of supply. In collaboration with our partner companies, we produce hydrocarbons from 62 fields. In 35 of those, we are the operator and so responsible for all work carried out. GDF SUEZ E&P Deutschland 603 employees 13 Wide-ranging expertise: The ENGIE Group Germany has been our home for 127 years, but our expertise comes from around the world. This is because GDF SUEZ E&P Deutschland is part of the ENGIE Group, which is headquartered in Paris. We are part of an internationally active business unit specialised in exploration and production. Other affiliates are located in countries such as Norway, the UK and the Netherlands. As one of the world’s leading energy suppliers, ENGIE is active along the entire energy value chain. It provides private customers, local authorities and businesses with efficient and innovative solutions. Its corporate policy embraces diverse sources of gas supply, flexible and low-emission generation of electricity, and expertise in four key areas: independent electricity production, liquefied natural gas, renewable energy and energy-efficiency services. ENGIE is developing its business activities in line with a responsible growth model. This will allow it to overcome the major challenges we face with regard to energy supply and the environment: meeting energy demands, combating climate change and making efficient use of available resources. apprentices 471 million euros in revenue 6.1 terawatt-hours of gas 394,000 tonnes of oil 62 o il and gas fields 35 own operated 25 million euros royalties paid to German states 6 ABOUT US 152,900 Employees worldwide 74.7 billion euros Revenue 6-7 billion euros of net investment per year over 2014-2016. Activities in nearly 70 countries 900 researchers and experts in 11 R&D centres ENGIE exploration & production 55.5 million barrel of oil equivalent (boe) Oil & gas share Production by country 50 % Norway 33 % oil 67 % gas 27 % Netherlands 13 % Germany 6 % UK 4 % Other ABOUT US 7 Germany is our home 1990 We have a long tradition of energy production here in Germany. Privatisation of VEB Erdöl-Erdgas Gommern, name changed to Erdöl Erdgas Gommern 1994 1957 1888 Foundation of subsequent C. Deilmann AG 1923 Erdöl Erdgas Gommern taken over by Gaz de France Foundation of VEB Erdöl-Erdgas Gommern 2007 Merger of Gaz de France Produktion & Exploration Deutschland and Erdöl Erdgas Gommern Foundation of subsequent Deutsche Schachtbau- und Tiefbohrgesellschaft 2015 GDF SUEZ Group changed its brand name to ENGIE 2008 2003 1923 Foundation of Preußische Bergwerks- und HüttenAktiengesellschaft Takeover and change of name to Gaz de France Produktion & Exploration Deutschland 1989 Foundation of Preussag Erdöl und Erdgas Merger of Gaz de France and SUEZ to form GDF SUEZ Name changed to GDF SUEZ E&P Deutschland 1995 Name changed to Preussag Energie 1991 Merger of oil and gas activities to form Deilmann Erdöl Erdgas 8 HISTORIC MILESTONES HISTORIC MILESTONES 9 We are active in many regions We combine our extensive experience with modern technology to secure production in older fields, such as those in the north-west of Germany. We are, however, also developing new projects. These include natural gas production in eastern Germany, and the Römerberg oil field in the town of Speyer. Märkisch Buchholz The Märkisch Buchholz reservoir lies in Brandenburg, around 50 km south-east of Berlin. GDF SUEZ E&P Deutschland developed the field with three exploration wells in 1986. However, we were unable to use the reservoir for production because the gas has a very high nitrogen content. Now new processing technologies are making commercial production possible. In autumn 2015 we will be carrying out production tests that should confirm our technical plans. The processing plant will be constructed as part of an intra-group collaboration, and gas production is scheduled to start in 2019. In a separate project (but still closely linked to gas production), we and other ENGIE subsidiaries are aiming to provide the town of Märkisch Buchholz and the surrounding communities with a carbon-neutral energy supply in the medium term. Rühlermoor We have been producing oil from the largest oil field in mainland Germany since the 1950s. As part of the project „Oil from Rühlermoor – Combining Tradition with the Future“, we are planning to continue production in the Emsland district over the long term and see potential for developing additional reserves using proven oil production technology. Among other things, the project will further develop the Rühlermoor oil field by drilling new wells, making alterations to the existing well site, and installing an ultra-modern combined heat and power plant for producing steam and electrical energy. ExxonMobil operates the Rühlermoor field, and GDF SUEZ E&P Deutschland has a 50-percent share in the project. 10 OUR ACTIVITIES Römerberg-Speyer The Rhine Valley has favourable geological conditions for hydrocarbons. Oil production in the Römerberg-Speyer field is the most important project in the area and makes Rhineland-Palatinate the third largest oil-producing state in Germany. Since 2007, we and our consortium partner Palatina GeoCon have successfully drilled seven wells from two existing sites here. The continuing development of the field is a flagship project that offers numerous opportunities. The aim now is to expand production, which is currently limited to 500 tonnes per day. Several exploration projects have also been set up to investigate the additional potential of the Upper Rhine Valley. OUR ACTIVITIES 11 Oil and gas made – in Germany! 12 KOLUMNENTITEL KOLUMNENTITEL 13 Our business area Seek, and ye shall find: Seismic surveys Astrid Forster geologist “When I talk about my job to other people or colleagues from different fields, I get the feeling most of them struggle to understand what I do. A lot of people think the work of a geologist is complex, technical and dry as dust. But actually the opposite is true. It’s mainly the geologists who search for clues and make the discoveries here.” At the start of every exploration project, we need to gather information about the geological structures below the ground. We collect the data using seismic surveys. These sophisticated tests use energy waves. Survey teams trigger the waves in a controlled manner above ground. They do this in holes roughly 15 metres deep when working out in the open, and use special vibroseismic trucks when working in residential areas. The different rock layers reflect the energy waves back to the surface, where they are picked up by geophones and converted into electrical impulses. We carried out a seismic survey in Emsland and in Bentheim county between late 2013 and early 2014. The survey teams worked on an area measuring 140 square kilometres, and it takes over a year to evaluate and interpret the data. The results should mainly help to improve production in existing fields. The generated data are digitally recorded during the survey and then undergo complex computer processing before being evaluated by our geologists. The result is a three-dimensional image of the geological structures that allows experts to gather information about possible reservoirs. We use the findings as a basis to decide whether conducting further exploration work – such as drilling a well – would be worthwhile. 14 KOLUMNENTITEL OUR BUSINESS AREA 15 To produce or not to produce? An exploration well has the answer Thanks to innovative drilling technologies, we can now tap deposits that, for technical and economic reasons, were previously impossible to exploit. Evaluated data from seismic surveys provide the basis for exploration oil and gas wells. Once our experts have determined the location of the well site and the type of drilling rig required, we submit the operational plans to the relevant mining authorities for approval. The location of a well does not just depend on geological structures, but also on the local situation, such as the proximity to residential areas, transport infrastructure and environmental protection areas. The work begins with the construction of the well site and access routes. The site is designed to prevent contamination of the surrounding area and subsurface environment. If necessary, noise barriers are built around the site. Experts then erect the drilling rig on the well site and operate it around the clock in shifts. It takes the team just a few weeks to drill the well, which can sometimes be several thousand metres deep. Following a series of short production tests, the rig is dismantled and our experts make a decision on how to proceed. If we have found enough gas or oil, we can prepare production operations. If the well did not indicate the presence of any oil or gas deposits, we cement and seal it securely and remove the well site and access routes. We return the used areas to their original state. In the past few months, for instance, we drilled two side tracks in the Rühlertwist field in the Emsland district. Malte Damm drilling engineer “Our drilling activities bring with them a great deal of responsibility towards humans and nature. We never lose sight of this, which is why we investigate the possible consequences of our activities before we begin and, for instance, ensure that we work to the latest standards when building well sites and drilling.” 16 OUR BUSINESS AREA 17 Production using state-of-the-art technology Back to nature through site restoration If an exploration well proves successful, our experts dismantle the drilling rig and build extraction and processing facilities. Once that has happened, production can begin. Pipelines transfer the oil and gas for further processing. Our industry also uses road and rail tankers for transporting oil. We are responsible for site restoration and for fully rehabilitating land that we have used for mining. After we permanently shut down an operation, specialist companies fill in the wells and dismantle the extraction and processing equipment. We take an equally professional approach to clearing the well sites and refilling them with topsoil. This restores the environment to its original state and means the land can be used for agriculture or forestry again. Once we have completed the extensive work, the relevant mining authority gives notice of the end of mining supervision. Several million euro are available The timeframe for commercial production varies and depends on the situation at each reservoir. We are working to improve recovery rates in older fields. One way of doing this is to use a technique known as horizontal drilling. This involves crews drilling parallel to the surface and allows us to exploit the oil and gas reservoirs much more efficiently. One of our most important production operations is in the Rhine Valley, which has favourable geological conditions for oil deposits. Since the end of 2007, for instance, we and our partner Palatina GeoCon have drilled seven wells close to Speyer. The Römerberg-Speyer field produced roughly 168,000 tonnes of oil in 2014 and thus made a major contribution to overall production in Germany. 18 OUR BUSINESS AREA for clearing decommissioned facilities each year. Our site restoration division implemented around 40 projects in 2014. Most were located in the state of Saxony-Anhalt, but Lower Saxony and other states also benefited. We have removed around 450 items of property over the past 10 years. OUR BUSINESS AREA 19 Safety comes first Health, safety and the environment (HSE) are central to our corporate culture and a priority in our company policy. Health, safety and the environment (HSE) are central to our corporate culture and a priority in our company policy. Preventive measures, quality controls and ongoing improvements are key factors to our success in this area. Our experts assess risks and ensure that multiple safeguards are in place. All GDF SUEZ employees and service providers are committed to achieving HSE targets. Avoiding accidents and damages is the primary objective in everything we do. This applies to the environment, employees, service providers and the public. Our industry has a reputation for high safety and environmental standards in Germany, and is an international leader in the field. Rather than merely complying with rules and regulations, our HSE policies mean that we very often go above and beyond the legal requirements. All our work is carried out in close consultation with the relevant state offices for mining, energy and geology. Peter Hartmann responsible for safety, health and environmental protection “We have two key safety rules that apply to all employees and service providers: 1. Safety always comes before production, costs and meeting deadlines. 2. If you see something, do something about it. In other words, take immediate action whenever you spot a hazard. That can include stopping all work immediately.” 20 OUR RESPONSIBILITY KOLUMNENTITEL 21 Associated gas: A valuable natural resource We take responsibility 365 days a year: Examples in our daily work Safety starts in the mind We believe that safety should be more than just a collection of rules. It has to be a conviction, too. This is why we aim to improve our employees’ safety awareness every day. Our activities in this area include the internal safety competition “Sehen, was Sache ist” (which encourages staff to report safety issues), regular brief safety talks at the start of departmental meetings, and visits to every well site by our management team. By doing this, we show that safety affects everyone in the business equally. Training sessions are an important part of our efforts. They include our computer learning programme, exercises with voluntary firefighters, seminars on identifying and assessing hazards, and first-aid and safe driving courses. 22 OUR RESPONSIBILITY Associated gas is a type of gas that occurs when producing oil. As far as possible, we aim to avoid burning off (flaring) this natural resource, because doing so releases greenhouse gases and destroys valuable energy reserves. GDF SUEZ E&P Deutschland uses associated gas as efficiently as it can and in ways that vary according to local circumstances. One application involves using it in cogeneration plants to produce electricity and heat that then go back into our daily operations. We use the electricity for things such as lighting our well sites and driving our pumpjacks, while the heat keeps our facilities warm and serves as process heat in our processing operations. At other locations we use the gas thermally, to generate steam. Our experts are continually working on innovative concepts for making our process technology even better. Energy management: Save electricity, protect the climate Our strengths do not only lie in producing energy, but also in saving it. Our energy management system has DIN EN ISO 50001 certification. We are aiming to continually reduce our energy consumption and greenhouse gas emissions over the long term. One of our goals is to reduce the amount of electricity we purchase by 10 percent by 2020. The only way to achieve this is with a structured approach. We have carried out energy assessments of all our production operations and are using energy management software to review our key figures. This allows us to see how much electricity goes into producing a tonne of oil or gas, and how much energy our individual locations and our most energy-hungry facilities (e.g. pumpjacks) consume. The information means we can pinpoint and remove weak spots. Accredited certifiers review the energy efficiency of our locations once a year. Groundwater protection: Above and below the surface Companies that produce and process oil and gas in Germany have to comply with very high standards regarding water and nature conservation. The design of well sites is subject to strict guidelines. Our experts fully seal new well sites and install a peripheral guttering and drainage system. All liquids that occur (even rainwater) are captured and properly processed or disposed of. To protect groundwater below the surface, we ram a casing pipe up to 60 metres into the ground. The ramming action causes the subsurface to collect around the outer wall of the pipe. This forms a seal between the soil and the pipe. Our experts then run a protective pipe several hundred metres into the ground. This well section is cemented up to the surface to create a secure seal between the individual rock formations and the pipe. Biodiversity: Protecting variety When it comes to the environment, we believe that soil, groundwater, surface water, air, flora, fauna, and the proper functioning of ecosystems are especially worthy of protection. This is why we arrange for external experts to carry out comprehensive biodiversity studies at all well sites located in nature conservation areas in Europe. This also applies to the smallest on-site activities. OUR RESPONSIBILITY 23 Our commitment Good neighbourhood and communication As well as being committed to our staff, we are also dedicated to the regions, cities, towns and communities in which GDF SUEZ E&P Deutschland operates. We are an active sponsor in many different areas, such as town festivals, cultural events, conservation projects and sports clubs. The World Festival of Children’s Theatre in Lingen was a particular highlight for us in 2014. The event brought together some 350 children from five continents to perform plays and dance shows on the theme of “colour your world!”. In addition, we have very close ties with voluntary fire services and youth fire services in many regions throughout Germany. We also believe that being a good neighbour involves communicating openly about our activities and projects. We reach out to the public in many different ways, such as by running information events for citizens, arranging meetings with the press, giving presentations to local politicians and authorities, and holding discussions with residents. Since the start of 2014, for instance, we have run some 40 guided tours for the public at our well site in Speyer. Günter Lügering responsible for land-related matters “I work with different people every day because I handle the company’s usage agreements, among other things. We always go in person to talk to the people who will be affected. The discussions invariably show me that we have had a reputation as a reliable, transparent partner for many years.” 24 OUR RESPONSIBILITY KOLUMNENTITEL 25 Our greatest potential We focus on individuals The road from oil and gas exploration to production is a long one. As well as needing time, the journey also requires a great deal of specialist knowledge. This is why our company employs people in a wide variety of professions. We need the expertise of reservoir, drilling and production engineers, geologists, underground and surface technicians, safety personnel and production supervisors – to name just a few. To ensure that our staff can do their different day-to-day tasks to the best of their abilities, we are committed to providing them with targeted training and seminars. We invested some 851,000 euros in further training in 2014. Our staff completed 15,000 hours’ worth of seminars that covered specialist training, language learning, and personal development. We use external providers for some of our further training sessions, but we also draw on the special programme offered by our own further training academy, GDF SUEZ University. Our managers hold yearly appraisals with their staff to find out what type of further training they want and would be useful. The meetings also allow managers to help their employees develop their 26 EMPLOYEES career. Topics of discussion include the employee’s goals and management potential, and whether he or she would like to go on a secondment abroad. All of our employees get an appraisal, whether they are at the very beginning of their career or have been in the job for a long time. Investing in the future Further training plays a big role in our HR management, but so does training for students and those just starting out on their career. We provide young professionals and newcomers to the industry with numerous options for taking their first steps into the exciting world of exploration and production. We want to promote young people, which is why we offer a trainee and scholarship programme, a degree with on-the-job training, a variety of apprenticeships, and placements for writing dissertations. We are especially committed to expanding our international graduate development programme, as this type of international exchange is particularly attractive to those just starting out on their career. The programme is run in very close collaboration with our affiliates around the world. Mum, Dad and kids are welcome Investing in the future is not just about supporting people at the start of their careers. For many of our experienced employees, job satisfaction increasingly depends on being able to combine a career and family life. We therefore attach a great deal of importance to this issue. The Emsländische Stiftung Beruf und Familie (a foundation dedicated to helping people balance a career and family) certified us as a family-friendly company in 2011. We have opened two specially designed parent-and-child offices for use by staff experiencing gaps in childcare. We also collaborate with daycare centres and are involved in opening an international school in Lingen. Furthermore, our cooperation agreement with the Diakonisches Werk (part of the social welfare organisation of the Protestant church in Germany) gives our staff access to professional, qualified counselling services. A dedicated project team is continually developing new ideas for how we can harmonise our business interests with the personal and family needs of our employees. Nicole Graf HR officer “We want to invest in the future. For us, that means getting lots of different people with diverse backgrounds and experience on board. We employ about 600 staff, which means we are a mid-sized company and so part of Germany’s Mittelstand. Our connection with the group to Paris also gives our people international opportunities. That makes us stand out from the crowd and helps us attract applicants.” KOLUMNENTITEL 27 Oil and gas: Natural resources for everyday life Here in Germany, we take many things in life for granted: heating energy, furniture, clothing, medicine, car tires, petrol… but we rarely think about where they come from. Gas and oil are still crucial components in all of those things. They are a source of energy and a natural resource for everyday life. Germany needs gas for the energy transition Oil: More than just a source of energy Our industry produced 2.4 million tonnes of oil and 9.2 billion cubic metres of gas in Germany in 2014. GDF SUEZ E&P Deutschland is involved in these domestic production activities, which means we are strengthening Germany as an industrial location and doing our bit to ensure domestic security of supply. Even in these days of Germany’s energy transition (as its energy transition policies are known), the country cannot do without oil and gas. A 2014 Forsa survey found that around 79 percent of respondents feel the same way. Natural gas in particular is an integral part of the energy mix. In 2014, gas made up 20 percent of primary energy consumption (the total amount of energy that a country uses in a year). Around 50 percent of homeowners rely on gas for their heating alone. Gas is one of the most environmentally friendly fossil fuels. Germany produces around 11 percent of the gas it consumes. Oil is a real all-rounder: as well as generating heat and getting our cars from A to B, it continues to provide us with a key raw material. Components of crude oil are used in the manufacture of almost every chemical product. Cosmetics, polyvinyl chloride (PVC) and medicines are just some of the reasons why the chemical and pharmaceutical industry alone accounts for 10 percent of global oil consumption. Oil also remains one of the largest sources of energy for the primary energy market, providing around 35 percent of the mix. 28 ABOUT OIL AND GAS We are an employer, tax-payer and customer Northern Germany in particular has a long tradition of oil and gas exploration and production. Many families here have been earning a living from firms like ours for some 150 years. The companies that are members of the Wirtschaftsverband Erdöl- und Erdgasgewinnung e.V. (a trade association for oil and gas producers) employ roughly 10,000 staff, most of whom are highly qualified and work in structurally weak regions. In total, around 20,000 jobs depend on the E&P industry. Our activities mean that we are more than just a supplier of natural resources – we are also a reliable employer, tax-payer and customer for many sectors. Germany’s national budget and the budgets of the states and municipalities where we are active also benefit financially from our production operations. In 2014, for instance, we and other companies paid around 600 million euros in royalties, generated a combined revenue of 3.3 billion euros and invested 450 million euros in Germany. If we had no oil and gas … … we would not be able to take painkillers for migraine, because many medicines use oil as a raw material. … we couldn’t get together and watch football on the sofa, because the average sofa contains 60 litres of oil. … we would have to do without beauty products such as shampoo and lipstick, because many of them are oil-based. … we would’t have such a big choice in our wardrobe, because a lot of clothes are made of polyamide which contains oil. … there would be no window frames, floor coverings, medical devices and much more, because the polyvinyl chloride (PVC) needed to produce them is made from oil. … many families and their gas heating system would not be able to help Germany achieve its climate change goals. Around seven million German households are heated by gas from Germany. PVC … we would have to stop running our cars on petrol or natural gas. ABOUT OIL AND GAS 29 Heinz Kuper works in the core sample warehouse “When we’re drilling an exploration well, we remove core samples from several thousand metres below the surface. That means our warehouse contains an ancient treasure that is over 80 kilometres long, comes from different regions of the world and dates from different stages in the Earth’s history. Just imagine: some samples are so old that dinosaurs walked on them. Others come from the Devonian period, which was about 350 million years ago and a long time before dinosaurs showed up.” 30 Publishing information Responsible for content: GDF SUEZ E&P Deutschland GmbH, Waldstraße 39, 49808 Lingen (Ems), Germany, www.gdfsuezep.de Gestaltung: GUCC grafik & film, Münster, Druck: Erdnuß Druck, Sendenhorst Printed on Circle Offset Premium White made from 100% recycled paper, certified by the FSC® and awarded the EU Ecolabel. If you have any questions, feel free to call us on + 49 (0) 591 61 28 88 or e-mail us at presse@gdfsuezep.de. Issue: 2015, financial year: 2014 PUBLISHING INFORMATION 31 GDF SUEZ E&P Deutschland GmbH Waldstraße 39 D-49808 Lingen (Ems) gdfsuezep.de