RDG.ENERGY

Why did RAG, the former Austrian parent company, found a German subsidiary?

The founding of RDG reflects a new business model that intensified RAG’s focus on Germany as a whole. RDG is a new kind of energy company that unites traditional oil and gas exploration and production activities with innovative renewable energy generation concepts. Through this, we offer the best of two worlds. This means that, wherever possible, reservoirs are reused as sources of renewable geothermal energy after production of conventional energy sources has ended. We call this ‘reservoir upgrading’. We are now in the process of establishing this approach on the German market.

What led to the complete takeover of RDG by Petroleum Equity?

In 2017, in the course of a strategic consolidation process, the former parent company RAG decided to concentrate the focus of its activities on Austria. As a consequence of this, early 2018 saw the spin-off of RDG from RAG and the full transfer of the company to PE. RDG is an independent company under the umbrella of PE, an alternative investment firm focused on upstream oil and gas.

In the course of ownership transition, the company took on the highly-qualified RAG employees who had previously worked for the German subsidiary to safeguard and preserve the company’s vast store of operative-technical expertise and experience. Also unchanged after the takeover were the company’s high environmental and safety standards, which by far exceed the obligatory legal requirements. Also carried over into the new company was the culture of transparent dialogue, which foresees active and comprehensive dialogue with politicians, the media and the public in the course of all planned activities and projects. RDG has always, and still does, categorically exclude the use of hydraulic fracturing, generally known as ‘fracking’, from its business activities – the company maintains its focus on conventional exploration and production.

What role does PE play at RDG?

As a partner of RDG, PE was a stakeholder right from the start. Following the spin-off of RDG from RAG, ownership of the company was transferred to PE. RDG is an independent company under the umbrella of PE, an alternative investment firm focused on  the oil and gas segment. PE has contributed valuable expertise to RDG in many areas, in particular by the appointment of Bernhard Schmidt to the position of CEO. Having identified the outstanding opportunities offered by the RDG model – the combination of conventional E&P activities and renewable energy solutions – PE decided to invest in these potentials.

What does the name RDG stand for, and what does it represent?

The name RDG above all documents the change in the business model. While in the past RAG was primarily associated with oil and natural gas exploration, the name RDG is intended to reflect our additional dedication to geothermal energy and the sustainable exploitation of resources. The ‘D’ in the name – for Deutschland – symbolises our long-term commitment in Germany. The name RDG was retained after the takeover by PE.

What is the management structure at RDG, and who is the local contact person?

RDG’s organisational structure is divided into finance, operations and technology. Although ownership of RDG has changed, there has been  continuity at management level. This becomes visible not only in the frictionless continuation of all existing projects, but also at management level at RDG, which has remained unchanged in the technical-operative business areas. Similarly, no changes have been made in the area of commercial management. To contribute additional professional expertise to RDG, PE appointed experienced E&P manager Bernhard Schmidt to the position of Chief Executive Officer at RDG. The local contact person is Hans-Jürgen Handler, RDG’s Chief Technical Officer.

What projects are in planning?

In Germany, RDG owns an exploration permit for the Salzach-Inn concession in Bavaria, where we are currently conducting a project in the municipality of Ampfing.

Our subsidiary RDG Niedersachsen GmbH owns the exploration rights for two licence areas in Northern Germany. This concerns the Borsum and Heemsen licence areas and the rights for the production licence areas Lahberg and Wense, both within the Borsum concession. The objective is the redevelopment of the formerly unprofitable oilfields and the search for possible further reserves in the immediate vicinity of these fields. We are currently in the evaluation phase and, at present, no concrete projects are planned.

Joint ventures with partner companies are in operation in the Tannheim (Baden-Württemberg) and Lübben (Brandenburg) concessions.

In addition to our existing projects, we are currently in the initial assessment phases of possible future projects. Please understand that we cannot disclose further details for reasons of competition.

In some German states, fracking is permitted when certain requirements are fulfilled. What is RDG’s position with regard to this?

Exploration and development activities for the exploration of unconventional oil and gas reserves are not a part of the RDG business portfolio. RDG business principles categorically exclude hydraulic fracturing.