CAPITAL: Berlin

MONETARY UNIT: Deutsche Mark

REFINING CAPACITY: 2,275,300 b/cd

OIL PRODUCTION: 57,910 b/d

OIL RESERVES: 357 million bbl

GAS RESERVES: 12 tcf

The European Commission approved the German government`s ecological tax reform, saying it did not break European Union rules on subsidies.

Germany increased taxes on petrol, electricity, heating fuel, and other energy products on Apr. 1, 1999, to improve environmental protection and pay a reduction in workers` benefits contributions.

The commission had questioned plans to limit tax hikes for certain energy-intensive industries, including agriculture and railroads, but decided the measures were in line with the EU`s environmental goals.

The taxes were approved for 3 years. The government was to reapply for the commission`s approval if it had not completed the second stage of its tax reform by then.

In late 1999, the German parliament was considering an energy tax increase for the 2000-2003 period. The legislation gave tax breaks to highly energy-efficient gas companies and utilities but further increased the gasoline tax.

Meanwhile, the Economics Ministry planned to mandate low sulfur fuel in 2001, earlier than the European Union`s 2005 deadline.

The government, the oil industry, and automakers agreed to introduce a fuel with less than 50 ppm of sulfur in 2001. The move required European Union and Bundestag approval. German gasoline had a sulfur content of 180 ppm and diesel fuel 400 ppm.

Separately, Germany resumed selling its reserves of crude oil in 1999. Total sales of 31.5 million bbl were planned.

Storage

Wingas GmbH, Kassel, developed Rehden gas field into Western Europe`s largest underground storage facility.

Wingas was a 65-35 joint venture of Wintershall AG and OAO Gazprom of Russia.

It planned to move gas to Rehden, 60 km south of Bremen, through the Midal trunkline built to transport North Sea gas.

The field`s original gas reservoir pressure was 280 bar, which was to be the operating pressure for the storage facility. Wingas said the conversion required seven compressors with combined rating of 88 Mw.

The field`s working storage capacity was increased to 4.2 billion cu m from 2.6 billion cu m, with a further 2.8 billion cu m serving as a cushion to maintain reservoir pressure.

GAS was injected through 16 wells at a rate of up to 1.4 million cu m/hr and can be recovered at 2.4 million cu m/hr.

The Rehden field went on flow in 1954 and was depleted just before the conversion began. The reservoir is in the Zechstein dolomite at 1,900-2,100 m and extends over 6 sq km.

Offshore

Wintershall AG, Kassel, planned the first field development in the German sector of the North Sea.

The A6/B4 gas find was to be developed with a small platform tied back to the existing F-3 platform in the Dutch sector. From there, gas would be exported through the Nogat pipeline to Den Helder, The Netherlands.

The field is the first on Germany`s continental shelf, although in the 1970s RWE-DEA AG developed Mittelplate oil field in tidal waters using an artificial island.

Wintershall and license partners RWE-DEA, BEB Erdgas & Erdoil GMBH, and BASF AG planned to sell gas from their field to Dutch state gas firm Nederlandse Gasunie NV beginning in 2000.

The field has estimated reserves of 480 bcf of gas and was expected to be developed at a cost of $225 million. Production was expected to average 120 MMcfd.

Development consisted of a six-legged steel platform in 48 m of water and two or three wells. Also, dual 117 km pipelines would carry gas and condensate to the F-3 platform, where Nederlandse Aardolie Mij. BV is operator. Condensate was to be stripped and carried from F-3 by tanker.