Vermilion understands the importance of being a great neighbour. That is why we are seeking contact with all those that are in proximity to our activities.
To better help our neighbors understand more about Vermilion Energy in Germany, we have prepared the following documents to answer common questions about Vermilion Energy in Germany and our recent acquisition of producing oil and gas fields in Lower Saxony. Should you have any questions that are not answered here, we encourage you to contact us.
The German market is of interest to us because there is untapped potential in well-established production areas and at the same time there are strict legal requirements in terms of environmental protection and safety. Since Vermilion has operated in Europe since 1997, we are highly familiar with these standards and appreciate them. We entered Germany in 2014 through the acquisition of interests in producing gas fields. In 2015, we acquired a significant interest in exploration licenses and in 2016 we reached an agreement to acquire interests in producing oil and gas fields. We aim to increase gas and oil production in Germany by optimizing existing assets and exploring for new conventional oil and gas deposits.
Oil and gas exploration and development makes significant use of advanced technologies. Engineering developments now allow us to economically extract hydrocarbons from reservoirs that previously would not warrant development. This results in technical and professional job opportunities for German workers.
Vermilion’s priorities are health and safety, the environment, and profitability, in that order. Nothing is more important to us than the safety of the public and those who work with us, and the protection of our natural surroundings. Environmental impact assessments and public participation support the highest safety standards both for human health and safety and the environment. Vermilion is one of only five oil and gas companies in the world to be named to the CDP Climate “A” List demonstrating our strong commitment to the environment and sustainability.
We support the latest proposals to change the laws on mining and water resources, which create a stronger link between the environment and the mining industry and require stronger involvement from the general public and the administration. We plan to comply with these new regulations even before they enter into force.
All of the geological formations that we intend to target are “conventional” deposits. We do not intend to target any shale gas deposits. In order to extract hydrocarbons, we plan to use the most modern drilling and extraction technologies available. When appropriate, we may use sandstone fracking technology for certain wells. This technology is well understood and widely-used in Germany.
We believe natural gas will continue to be a key component in the energy transition. Natural gas is the most environmentally friendly fossil fuel and is well suited to heating and electricity production. Gas-fired plants are necessary for the energy transition since they can balance out the fluctuation in the production of renewable energies. Natural gas therefore supports a sustainable energy transition. We believe that in order to ensure sustainability, hydrocarbon development should occur in highly-regulated environments such as in Germany. This also increases security of supply while at the same time reducing our dependency on imported gas.
Vermilion is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Founded in 1994 in Calgary, Alberta, Canada, Vermilion directly employs approximately 700 people and is celebrating more than 20 years of success.
Vermilion’s priorities are health and safety, the environment, and profitability, in that order. Nothing is more important to us than the safety of the public and those who work with us, and the protection of our natural surroundings. Vermilion is one of only 193 companies globally to achieve CDP Climate “A” List recognition in 2016 and the only North American energy company on the list. Vermilion is one of only five oil and gas companies in the world to be named to the Climate “A” List. We have also been recognized as a top decile performer amongst Canadian publicly listed companies in governance practices, and as a Best Workplace in the Great Place to Work® Institute’s annual rankings in Canada, France, the Netherlands and Germany. Vermilion is committed to the communities in which we operate.
In June 2016, Vermilion Energy Germany GmbH & Co. KG (“Vermilion” or “We”) announced the acquisition of interests in conventional oil and gas fields in Lower Saxony from ENGIE E&P Deutschland GmbH (“ENGIE”) (formerly GDF Suez). The acquisition was formally completed on 1 January 2017. Since then, Vermilion has become the contact point for any questions or concerns related to the acquired oil and gas fields where we are assuming operatorship.
Vermilion looks forward to continuing the longstanding tradition of oil and gas extraction in Lower Saxony. The nearby region surrounding Gifhorn is the cradle of oil extraction in Germany. As early as the 19th century, oil, which was believed to be liquid coal, was extracted in Oelheim. East Friesland has a long-history of gas production which has been established over many decades.
With this agreement, Vermilion has acquired interests in nine oil and four natural gas fields. Of these, Vermilion will become the operator of five oil fields in the operational area of eastern Hannover and three natural gas fields in the operational area of East Friesland. As a result of this acquisition, Vermilion will be directly involved in the extraction and exploration of conventional oil and gas as an operational manager in Lower Saxony. Our initial objective is to optimize existing production from these fields.
The acquired production license interests are located in the heartland of the German oil and gas industry in Lower Saxony. The state of Lower Saxony has a long history of exploration and production activity, particularly in the administrative districts of Gifhorn/Peine and Leer/Aurich. For each of the acquired production licenses, the license names, respective regions, whether there is ongoing production activity as well as whether we are the license holder are listed below:
| Gas Fields | |||
|---|---|---|---|
| District/City | License Name | Ongoing Production* | Vermilion as Licensee/Operator |
| Stadt Emden | Uphuser Meer | ||
| Landkreis Leer | Leer | ||
| Landkreis Aurich | Grosses Meer | ||
| Landkreis Heidekreis | Dethlingen | ||
| Oil Fields | |||
|---|---|---|---|
| District/City | License Name | Ongoing Production* | Vermilion as Licensee/Operator |
| Stadt Braunschweig | Rühme-Vordorf | ||
| Landkreis Gifhorn | Vorhop | ||
| Landkreis Gifhorn | Knesebeck | ||
| Landkreis Gifhorn | Hankensbüttel | ||
| Stadt Hannover | Höver | ||
| Landkreis Peine | Oelheim Sued | ||
| Landkreis Peine | Eddesse Nord | ||
| Landkreis Gifhorn | Lüben | ||
| Landkreis Gifhorn | Lüben West | ||
Upon completion of the acquisition, the production licenses will be transferred from ENGIE to Vermilion. The mining authority of Lower Saxony – Landesamt für Bergbau, Energie und Geologie (LBEG) – verifies the qualification and capability of the license recipient. Prior to undertaking significant projects, Vermilion will be required to file an application with the mining authority. In addition, Vermilion will contact the relevant authorities, associations, neighbors and other stakeholders who have an interest in the project.
Vermilion expects to increase activity at the acquired production sites over many years. In doing so, we further develop the expertise of employees and suppliers working on site. In addition, the legally required payment of royalties and company taxes provide further benefits to the local economy.
Vermilion will work hard to maintain strong relations with our new neighbors at these acquired production sites. We attach great value to health, safety and environmental protection and value feedback received from our neighbours and other stakeholders.
Vermilion’s priorities are health and safety, the environment, and profitability, in that order. Nothing is more important to us than the safety of the public and those who work with us, and the protection of our natural surroundings. Environmental impact assessments and public participation support the highest safety standards both for human health and safety and the environment. Vermilion is one of only five oil and gas companies in the world to be named to the CDP Climate “A” List demonstrating our strong commitment to the environment and sustainability.
German mining law distinguishes between exploration permits and licenses for production. The exploration permit is a temporary permit that allows for the exploration of potential gas and oil reservoirs. The license for production is required before production commences. Any specific operational activities, such as seismic analysis, the construction of a well site or a drilling operation will require further operating program applications that will be examined by the mining authority of Lower Saxony. The acquired licenses are – apart from Simonswolde – licenses for production. Before commencing any specific activity, Vermilion must file the relevant application.
The acquisition was formally completed on 1 January 2017.
Vermilion will take over the operational management of five oil fields in the operational area of eastern Hannover and three gas fields in the operational area of East Friesland. EMPG and DEA will remain the operational managers for the other five fields included in the acquisition.
It is always Vermilion’s aim to be a good neighbor and to minimize the effects of our operations on the environment. We adhere to all applicable laws, rules and regulations and strive to work with the utmost care towards safety and environmental standards. We also believe strongly in the importance of acting and communicating transparently in the communities in which we operate. In this regard, we will use our nearly two decades of experience in France and the Netherlands. In both countries we have been able to successfully conduct our activities in an environmentally sensitive manner while maintaining engagement with the communities. That is what being a good neighbor means for us.
We expect that field development optimization will involve underground extended-reach wells and other reservoir engineering methods such as replacing the volume of liquid which is extracted (voidage replacement). We believe that there are significant opportunities to apply current technology to these fields to enhance recoveries.
We have no plans to explore or develop unconventional hydrocarbon resources from shale formations in Germany.
Over the next several months, Vermilion will assess the project inventory and prioritize opportunities, with an initial emphasis placed on using existing infrastructure before exploring further reserves through new wells. Early communication with stakeholders is an important cornerstone of our planning process. Together with the communities we will work to minimize the potential environmental impact of our projects.
We are not planning any shale gas production. All of the geological formations that we intend to target are “conventional” deposits. In order to extract hydrocarbons, we plan to use the most modern drilling and extraction technologies available. When appropriate, we may use sandstone fracking technology for certain wells. This technology is well understood and widely-used in Germany.
Vermilion is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Founded in 1994 in Calgary, Alberta, Canada, Vermilion directly employs approximately 700 people and is celebrating more than 20 years of success.
Vermilion’s priorities are health and safety, the environment, and profitability, in that order. Nothing is more important to us than the safety of the public and those who work with us, and the protection of our natural surroundings. Vermilion is one of only 193 companies globally to achieve CDP Climate “A” List recognition in 2016 and the only North American energy company on the list. Vermilion is one of only five oil and gas companies in the world to be named to the Climate “A” List. We have also been recognized as a top decile performer amongst Canadian publicly listed companies in governance practices, and as a Best Workplace in the Great Place to Work® Institute’s annual rankings in Canada, France, the Netherlands and Germany. Vermilion is committed to the communities in which we operate.
(Unless otherwise noted, references on this website to “Vermilion”, or “the Company”, or “we”, or “our” collectively refer herein to any or all of the people and operations associated with Vermilion Energy Inc. and/or its subsidiaries including its German subsidiary Vermilion Energy Germany GmbH & Co. KG whose operations and activities are the focus of this website)
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