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RAG COMPANY PROFILE
ENGLISH
2 RAG COMPANY PROFILE RAG COMPANY PROFILE 3
Contents 4 The company
8 Business areas
28 Concessions
32 Sustainable energy projects
34 Research and development
36 A responsible corporate citizen
42 History
4 RAG COMPANY PROFILE FOREWORD 5
The companyRAG is Austria’s oldest established exploration, produc-
tion and gas storage company. Our core areas of busi-
ness are oil and natural gas exploration, production
and trading, and gas storage. Drilling operations and
other services closely related to our core business – as
well as projects focused on renewables such as geo-
thermal energy – complete RAG’s portfolio of activities.
Core business operations are focused on Austria and
other European countries, and RAG’s technology is
marketed worldwide.
Our goal is to provide our customers with safe, efficient,
environmentally friendly and affordable energy and gas
storage services – sustainably and responsibly. We aim
to maintain a high level of technical and economic per-
formance and bolster our competitive position over the
long term by means of innovation.
A joint venture between RAG, Gazprom and Wingas
operates the Haidach gas storage facility, and another,
with Uniper, runs the 7Fields storage facility. Both
facilities straddle the border between the provinces of
Salzburg and Upper Austria. Through its own storage
capacity and its activities as an operator, RAG makes a
major contribution to security of supply in Austria and
in Central Europe as a whole, with a working gas
volume of around 6 billion cubic metres.
Since it was established RAG has produced around
16 million tonnes of crude oil and 26 billion cubic metres
of natural gas.
An oil and gas producer for over 80 years RAG focused on oil exploration and production until
the 1950s, when it also began producing natural gas.
We built gas infrastructure in the 1970s and 1980s,
whilst developing large gas reserves in Upper Austria.
We moved into gas storage in the mid-1990s, and this
has since become a large, consistently profitable part
of our business, with a bright future. After converting
about 50 percent of our depleted gas reservoirs into
storage facilities, RAG has become Europe’s fourth
largest storage operator.
Increasingly, we are able to support clients in other
countries by offering them the technical know-how we
have built up over decades, for example through our
RAG Energy Drilling and Technology Sales & Services
business units.
The cornerstones of RAG’s success have always been
technological innovation, high levels of expertise across
all core operations, an enthusiastic workforce that
identifies strongly with the company, and a solid
ownership structure. We believe that these will continue
to be key strengths.
Responsible use of natural resources The global energy sector is going through a period
of radical transformation. Renewable energy use has
taken on added significance in recent years, and has
become a vital consideration in energy policy world-
wide, including as part of the agreement signed at the
Climate Change Conference in Paris in 2015. Never-
theless, we are convinced that oil, natural gas and gas
storage will remain crucial to energy supplies for a
long time to come.
Despite being a conventional energy company, we
believe that we have a major role to play as a standby
for renewables. The challenges of making solar and
wind power economical and of balancing out seasonal
demand variations can only be mastered by storing large
quantities of energy – and that means gas storage. We
are meeting these challenges with a number of power
to gas research projects, as well as initiatives to boost
efficiency at our production activities and in the opera-
tion of our facilities.
RAG will continue to make a major contribution to
Austrian energy supplies and storage, as it has through-
out its history, and to fulfil its economic function. This
includes observing strict safety standards, and imple-
menting projects in close consultation with land-
owners, residents, public authorities, customers and
employees.
Our mission is to use the natural resources entrusted to
us carefully and responsibly, to the benefit of society.
RAG’s history goes back more than 80 years. Its oil and gas exploration, production and storage operations play a key role in security of supply.
Kurt SonnleitnerChief Technical Officer
Markus MittereggerChief Executive Officer
Michael LängleChief Financial Officer
6 RAG COMPANY PROFILE SECURE, SUSTAINABLE AND AFFORDABLE ENERGY 7
forecast to increase by 150 percent over the same
period, energy efficiency measures clearly need to have
a major impact now and an even greater impact in the
future. This is especially apparent in Europe, which is
targeting a 15 percent decrease in energy use, Japan
(targeted decrease of 12 percent) and the USA (targe-
ted decrease of 3 percent) – demand is expected to
stagnate or decline in all three regions in the coming
years. By 2040, energy supplies will come from four
different types of sources, in roughly equal proportion:
oil, gas, coal and low-carbon sources. Coal dominated
the European energy market up to the middle of the
20th century, but was overtaken by oil in the 1960s and
accounted for almost half of global energy consump-
tion by the time of the second oil price shock in 1979. At
present, oil and natural gas make up around 56 percent
of world energy demand, as well as approximately
56 percent of Austria’s energy needs.Sources: BP Statistical Review of World Energy 2016; Statistics Austria
Environmentally friendly natural gasNatural gas is by far the most environmentally friendly
conventional energy source, and this means it has a
pivotal role to play in the gradual decarbonisation of
the energy system. A worldwide increase of almost
50 percent in natural gas consumption has made it the
fastest-growing fossil fuel. A fifth of the predicted rise
in global energy consumption will be supplied by gas.
Thanks to its storability, gas is perfectly placed to sup-
port the integration of renewables and to replace other,
more carbon-rich fossil fuels. Its attractiveness is
enhanced by the currently competitive prices, high
energy efficiency and extensive pipeline and LNG
infrastructure.
Gas provides round-the-clock security of supply, which
is especially important for large industrial companies
and small and medium-sized enterprises.
Natural gas has the fastest-growing share of fossil fuel
consumption, since it is increasingly seen as an environ-
mentally friendly alternative for electricity production
and other applications. Gas is also an ideal and essen-
tial back-up for renewables due to its ability to compen-
sate for swings in electricity supply and demand.
Revolutionary power to gas technology holds the key
to affordable solar and wind energy transportation and
storage, and thus to the constant availability of these
energy sources. Gas has become indispensable not
only in electricity generation, but also in heat genera-
tion – at cogeneration plants – and liquefied natural gas
will soon be an integral part of the transportation sec-
tor. With a range of applications that now rivals oil, na-
tural gas fully deserves its reputation as the energy
source of the future. The world’s biggest gas producers
are the USA, Russia, Iran, Qatar and Canada.Source: BP Statistical Review of World Energy 2016
The challenge facing oilSteps taken to boost energy efficiency are having an
impact on demand for oil. But there is no substitute for
oil in large parts of the economy, where it plays a
valuable role – above all the chemical industry, where it
as an essential base material. It is an irreplaceable in-
gredient in over 90 percent of all chemical products,
including plastics, detergents, cosmetics and fertilisers.
The current weakness in the oil markets presents major
challenges for the entire sector. It is a long-term trend
that will persist for a number of years. The oil price has
halved since August 2014, and now stands at about
USD 50 a barrel. This means efficiency is paramount in
order to make sure that oil production remains econo-
mic when the price for oil is low. For many years, RAG
has been a global industry leader in efficient production
methods that help to conserve resources. These
methods have allowed us to extract oil from the
Zistersdorf field in Lower Austria for over 75 years.
Valuable energy on our doorstepAustria’s oil and gas reserves play an important part in
security of supply. About ten percent of the oil and
14 percent of the gas required by Austria is produced
domestically – a major boon for the national economy.
Expansion of gas storage in Upper Austria and Salz-
burg, with billions of euros invested over the last ten
years, has made RAG the fourth-largest technical
operator of gas storage facilities in Europe – as well as
significantly helping to underpin security of supply in
Austria and Europe. RAG has now converted about half
of the gas reservoirs discovered in its 80-year history
into sustainable storage facilities with long useful lives.
These are RAG’s response to one of the biggest
challenges facing the energy sector, namely optimising
storability. Relative to consumption, the country already
has the largest gas storage capacity in Europe. Source: Statistics Austria
Securing energy supplies for the future while reducing
greenhouse gas emissions and improving energy
efficiency represents one of the biggest challenges for
Europe and the world. It will only be achieved by huge
collaborative efforts. The EU’s Energy Union strategy
and the UN Climate Change Conference in Paris have
set the agenda. One priority is to increase security and
solidarity of supply in the EU’s internal market. This will
require not only less dependence on imports, but also
the ability to store energy in large volumes. Reducing
consumption at the same time as decarbonising the
energy mix does not simply mean conserving resources
– it demands improvements in efficiency, and enabling
renewable and conventional energy sources to work
together. Given the fact that energy demand continues
to rise worldwide, these goals will be hard to achieve
without intensive research and development.
For years, RAG has been working on innovative solu-
tions that take account of changes in energy policies
and the situation in the energy industry.
These efforts are based on three pillars:
• Supporting the expansion of renewable energy
sources by increasing gas storage capacity – which
also plays an important part in strengthening
security of supply in Austria and Europe
• Facilitating and accelerating decentralised, renew-
able, energy-efficient generation that exploits
synergies, from thermal generation and geothermal
projects to natural gas vehicles, as well as the
development of sustainable, forward-looking
technologies such as power to gas, which makes it
possible to manufacture synthetic gas from wind
and solar energy
• Energy-efficient production of domestic crude oil
and gas, in line with the highest technological
standards, to supply industrial and private consu-
mers in nearby regions, thereby reducing imports
and safeguarding the environment thanks to
shorter transportation distances
This allows RAG to support the goals of the Energy
Union and the Paris Climate Change Conference, as
well as making an important contribution to sustainable,
secure and affordable energy supplies.
Surging energy demand – changing energy mixWorldwide population growth, industrial development
in previously underdeveloped regions, and structural
economic changes have all led to continuous rises in
energy consumption, which has doubled globally since
1970. Worldwide consumption is set to increase by a
third by 2040. And as global economic output is
Providing secure, sustainable, competitive and affordable energy for all is a major challenge, and is essential to economic growth and prosperity in Europe.
The challenge – secure, sustainable and affordable energy
“Conserving resources, boosting efficiency, enhancing storability, reducing our dependency on imports and expanding production capacity are key goals for Europe’s energy sector – and we must work hard to achieve them.”
Markus Mitteregger, Chief Executive Officer, RAG
8 RAG COMPANY PROFILE
Business areas
PRODUCE
SEARCH
STORE
DISCOVER
SUPPLY
SERVICES
Search: When exploring for natural gas, oil and geothermal resources, we use advanced 3D seismic technology to investigate subsurface structures. This allows us to pinpoint the areas where there are good prospects of success before drilling.
Discover: We confirm the presence of hydrocarbon and geothermal reserves by drilling appraisal wells to depths of 4,500 metres, using RAG Energy Drilling’s two modern rigs and the expertise of its highly trained employees.
Produce: We deploy sophisticated technology to produce valuable oil and eco-friendly natural gas with minimum impact on the environment.
Store: The gas storage facilities operated by RAG, with a combined capacity of around 6 billion cubic metres, are vital to security of supply in Austria and Europe. RAG’s storage capacity is marketed by a wholly-owned subsidiary, RAG Energy Storage GmbH.
Supply: Our customers can count on flexible and secure supplies of oil, gas and geothermal energy produced from regional reserves.
Services: Our Technology Sales & Services business unit and our subsidiaries allow international customers to benefit from the drilling, well services and production expertise we have built up over decades.
BUSINESS AREAS 9
The use of advanced seismic techniques makes it
possible to map the geological structure of the earth’s
subsurface three-dimensionally, down to depths of
5,000–6,000 metres. Seismic exploration involves
generating sound waves and picking up the echoes
reflected by the subterranean layers of rock.
“Oil and natural gas are hydrocarbons formed from organic substances by biological, chemical and physical processes in the course of the Earth’s history. They migrate from the source rock and, under the right conditions, accumulate in the tiny pores of subterranean reservoirs.”
Kurt Sonnleitner, Chief Technical Officer, RAG
The differing densities and acoustic properties of under-
ground rock strata make it possible to locate potential
oil- or gas-bearing formations. The signals (seismic
waves) emitted by special vehicles, known as vibrators,
are reflected by the layers of rock and detected by
arrays of receivers (geophones), usually with diameters
of about 15 centimetres, on the surface. Seismic
campaigns normally last for between four and eight
months. Powerful computers at RAG headquarters use
the data acquired in this way to generate images
similar to ultrasound scans. It takes several months to
process the raw data accumulated from millions of
seismic traces. The results are then subjected to struc-
tural and stratigraphic interpretation by RAG’s geo-
logists and geophysicists, enabling our experts to draw
conclusions about the probability that oil or gas accu-
mulations have been identified. However, proof of the
presence of hydrocarbons can only come from a well.
SEARCH 1110 RAG COMPANY PROFILE
Today the most informative method used to search for oil and gas reserves as well as geothermal prospects, and the state of the art, is 3D seismic. In order to limit the high costs and economic risks involved in drilling, it is vital to narrow down the areas where there are good prospects of success beforehand, by carrying out carefully targeted geophysical surveys.
Seismic exploration – using 3D images to map geological structures
Search
Seismic projectsTo date RAG has conducted 3D seismic surveys of a total area of about 4,000 square kilometres in Austria, Bavaria and Hungary. RAG has been routinely using 3D seismic – by far its most important exploration method – to explore its concessions since 1992 (the first pilot project was carried out in 1984 in Voitsdorf). The first large area to be surveyed in this way was around Munderfing, in Upper Austria, and this was followed by acreage between the River Salzach and Strass walchen, in Salzburg Province. We have now shot 3D seismic in a large part of our permits in Upper Austria and Salzburg. A major milestone was the discovery of the large Haidach gas field on the border of Upper Austria and Salzburg in 1997. Some years ago, after production at the field ceased, it was converted into the second- largest gas storage facility in Central Europe, and it now plays a key role in European supply security. Seismic campaigns have also brought us oil exploration succes-ses in the shape of the Hiersdorf, Bad Hall and Sierning fields, discovered between 2006 and 2009. The most recent surveys have been in a 220 square kilometre area in Attergau in 2009/10, and a 380 square kilometre area straddling the Steyr, Steyr Land, Kirchdorf an der Krems and Amstetten districts in 2012. A seismic survey will be carried out in Bavaria in 2016.
12 RAG COMPANY PROFILE
RAG Energy Drilling – a reliable, full-line partnerSince 2014, RAG has offered the drilling know-how it has built up over 80 years to external organisations. Equipped with two modern rigs and employing highly trained staff, RAG’s wholly-owned subsidiary RAG Energy Drilling (RED) provides dependable expert support for our customers’ drilling projects. The incorporation of well engineering and well services completes the company’s service portfolio, which covers both modular service packages and turnkey projects – for which RED can also act as general contractor. It carries out oil and gas exploration and development drilling, as well as sinking storage and geothermal wells.Drilling engineering and implementation, well completion and testing, all the way to handover – RED’s own expe-rienced staff handle every stage of the process.Professional project preparation, timely and transparent communication with public authorities, property owners and local residents, and close working relationships with contractors and service companies are all key factors underpinning our success.
DISCOVER 13
Exploration – from 3D seismic to drilling
Growing oil and gas demand is making it ever more vital to find new reserves. Technical progress has revolutionised hydrocarbon exploration, and RAG applies its extensive know-how gained in the Prealps to geologically similar areas in Austria and abroad.
Accurate 3D seismic, high-tech materials, novel drilling
techniques and a wealth of experience – these are the
ingredients for successful wells. The requirements that
drilling operations must meet are becoming more
exacting all the time. Today, thanks to new methods, it
is possible to drill far deeper, further and faster. Synthe-
tic diamonds and advances in metallurgy are giving
drill bits the strength and sharpness to withstand the
toughest conditions. Even the hardest rock is no longer
an obstacle. With state-of-the-art technology, it is
possible to drill more than 600 metres in a day in softer
strata, and the bit can be steered at any inclination, and
in any direction. In the past few years RAG has used
these methods to drill horizontal wells as long as 3,500
metres – at the Puchkirchen and Nussdorf storage
facilities, for example. Wholly-owned subsidiary RAG
Energy Drilling has two rigs, the E200 and E202, which
have maximum hook loads of 250 and 300 tonnes
respectively and maximum drill depths of 5,500 metres.
They have enabled RAG to step up exploration efforts
and raise output.
Outstanding environmental performance – partly as a
result of the use of natural gas-powered drive units
instead of diesel engines – and Safety Certificate
Contractor (SCC) certification show that RAG’s modern
drilling equipment meets the highest standards. A
highly qualified workforce ensures that we maintain
our competitive edge in terms of drilling expertise.
“Regional oil and gas production makes a major contribution to energy supplies, reduces dependence on imports, and generates econo-mic growth and jobs.”
Kurt Sonnleitner, Chief Technical Officer, RAG
The RAG Group has decades of drilling experience, and
has drilled over 1,200 wells with a total length of more
than two million metres. Our significant commercial
discoveries include the Haidach gas field – discovered
in 1997 and today Austria’s biggest gas storage reser-
voir with 2.6 billion cubic metres of capacity – as well
as geothermal reservoirs in Fürstenfeld, Munich’s Riem
district, and the towns of Simbach and Braunau on the
border between Bavaria and Upper Austria. Some of
the Styrian spas (including Loipersdorf, Blumau and
Waltersdorf) also owe their existence to thermal
springs struck by RAG wells.
Discover
www.rag-energy-drilling.at
14 RAG COMPANY PROFILE PRODUCE 15
Oiling the wheels of industryCrude oil remains unsubstitutable for many applications. RAG has been producing oil in Austria for over 80 years, and thanks to the use of 3D seismic and new technologies we continue to develop existing fields as well as finding and developing new fields – ensuring continued production for decades to come.
RAG’s exploration and production operations focus
primarily on Austria and Germany. The company owns
a 50 % stake in RDG, headquartered in Hanover and
established in 2016 to operate exploration concessions
located in Germany in future.
The oil fields in the RAG Group’s permits are small in
international terms, and sophisticated technology is
required to tap the reserves. The oil mostly occurs in
reservoir rock going back to the Jurassic and Creta-
ceous periods of the Mesozoic era. These formations
are 100–200 million years old, and are mainly at depths
of 1,000–2,500 metres.
Giving oil a liftWhen a section of a well has been drilled, casing and
tubing are inserted. Ideally, during the first stage in the
life cycle of a field, the oil finds its way to the produc-
tion wells and rises to the surface of its own accord,
due to the natural reservoir pressure. When the pressure
falls it is necessary to use techniques such as gas lift,
which involves injecting pressurised gas via the
production string. The gas reduces the weight of the
column of liquid, meaning that the well can continue to
produce under its own steam. After this stage (known
as the eruptive phase), a range of pumping technolo-
gies can be used, depending on the properties of the
crude, its gas content and the pressure conditions.
Where the gas content is low and the reservoir pressure
is falling, the oil is brought to the surface by deep well
pumps. Only the pumps’ drive mechanisms – the
characteristic pumpjacks – are visible on the surface.
Electric rotary submersible pumps can be used to
achieve higher flow rates.
Treatment – separation of gas, oil and water In its produced state, crude oil is not yet suitable for
transportation and refining, and it must first undergo a
number of processes. Given favourable circumstances,
in the shape of a strong inherent drive mechanism and
good reservoir conditions, primary recovery of over
50 percent of the reserves in place is possible. Howe-
ver, if the reservoir pressure is weak or the crude is
highly viscous, the primary recovery rate may only be
between five and 15 percent. After the crude has been
Produce
produced the formation water and sand in it must be
removed by treatment systems (separators and tanks).
The associated gas goes straight into the grid as soon
as it has been dried, but the crude is collected in tanks
before being transported to a refinery by rail or pipe-
line. The separated water is pumped back into the
reservoirs it has come from.
„Oil will remain an irreplaceable resource. Our company’s name, which is German for ‘Crude Oil Exploration Company’, says what our business is all about. We have been producing crude for over 80 years now. New technologies have enabled us to ensure we can continue production of this valuable raw material, which provides the base materials for the cosmetics, pharmaceutical and plastics industries. The average quantity of crude oil produced in Austria each year is equivalent to the amount needed by industry in Upper Austria.“
Kurt Sonnleitner, Chief Technical Officer, RAG
At present over 60 percent of the oil reserves in place
stay in the ground. RAG is carrying out research into
methods of raising the recovery rate so as to ensure
that Austrian oil remains available as a feedstock for
domestic industry for many years to come. As there
will be no “post-petroleum age” when oil is no longer
needed, good stewardship of this invaluable resource
is vital.
Oil production in AustriaRAG produces about 120,000 tonnes of crude oil a year
from its Upper and Lower Austrian fields. A pipeline
conveys the Lower Austrian output straight to
Schwechat Refinery. The crude produced in Upper
Austria is collected via gathering lines, and centrally
loaded into tank wagons in Kremsmünster and Ried for
rail transportation to refineries. It is marketed in
Austria, supporting security of supply in the country.
The crude produced is easy to process as it contains
few impurities. Depending on the fields they come
from, our grades are either paraffin or asphaltic base
crudes, with similar quality specifications to Brent
blend.
Zistersdorf – 80 years of eco-friendly oil production RAG‘s oil production activities began at the Gaiselberg field in Zistersdorf, Lower Austria, in 1938. Oil has been produced from that first well ever since, making it one of the oldest active oil wells in the world. This reflects the field‘s extraordinary geological features, as well as our environmentally friendly, sustainable approach to oil production in one of Austria‘s oldest wine-producing areas. The high-efficiency methods used help to conserve resources, and could serve as a model for the major oil-producing countries. Since the end of the 1930s, more than 6,660,000 tonnes of crude oil have been produced from the subterranean reserves around Zistersdorf, 180 wells have been drilled and hundreds of millions of euros have been invested in the region, creating jobs both directly and indirectly.
Environmentally friendly natural gas from regional fields
16 RAG COMPANY PROFILE PRODUCE 17
Climate-friendly natural gas has become one of the world’s most important energy sources, and experts are agreed that it will remain so. RAG has been producing natural gas at fields in Lower Austria, Upper Austria and Salzburg for over 50 years, and today operates about 200 gas wells. Cumulative output now totals about 26 billion cubic metres.
Decentralised supplies of environmentally friendly
natural gas produced in the region are important to
the local economy and have many advantages. We
know exactly where the gas comes from, that it is
produced and transported according to the strictest
environmental and safety standards, and that it reduces
import dependence. Currently, Austria meets about
one-sixth of gas demand from households, industry
and power stations with domestic output. Thanks to the
use of state-of-the-art technology we are continuing to
make commercial discoveries. The largest gas disco-
very in RAG’s history was the 17.5 square kilometre
Haidach field, near Strasswalchen, struck in 1997;
today it is Austria’s large gas storage facility, with capa-
city of 2.6 billion cubic metres. Other major finds were
made by the Nussdorf West 1 well in 2000 and Zagling
1 in 2004.
Ultramodern production technologyWhen a new gas field is discovered and developed,
first a production string, reaching down to the bottom
of the reservoir, is inserted into the production well,
once it has been cased and cemented. For the gas to
flow into the well from the reservoir, the casing and
cement must then be perforated. A “Christmas tree”
that closes off the well is installed at the surface. A
downhole safety valve in the production string prevents
the uncontrolled release of gas. The natural reservoir
pressure, which can be several hundred bar, lifts the
gas to the surface, where it travels from the wellhead to
the gas treatment plant via a high-pressure pipeline.
Depending on the reservoir type and the pressure
depletion, anything up to 99 percent of the natural gas
in place can be recovered. The flow rate declines over
time, along with the reservoir pressure. Because of
this, additional production wells are required later in
the life of a field to keep up overall output.
Clean natural gas for consumersBefore the gas can be fed into the supply network it has
to be processed. First, the produced formation water,
liquid hydrocarbons and solids are separated out. The
remaining water vapour is then removed from the gas
using glycol or adsorption agents. Finally, the pipeline
quality natural gas is fed into the network.
„Natural gas is by far the most environmentally friendly energy source. It can be safely stored in very large quantities, and is ideal for transportation by existing underground pipeline infrastructure. Gas is crucial to energy security of supply, and plays a key economic role due to its use in industry, district heating and power generation.“
Kurt Sonnleitner, Chief Technical Officer, RAG
18 RAG COMPANY PROFILE STORE 19
Store
Gas storage facilities underpin Europe’s energy supplies. Natural gas storage has grown in importance in recent years, and is now pivotal to security of supply in Austria and Europe as a whole. The storage facilities operated by RAG hold around 6 billion cubic metres of gas – equivalent to about 70 percent of Austria’s annual consumption. This infrastructure ensures that eco-friendly natural gas is available whenever it is needed.
Gas storage facilities – the energy storehouses of the future
RAG has been using depleted gas reservoirs to store
gas for over 30 years, playing a key role in security of
supply. Today it is Europe’s fourth-largest storage ope-
rator, and has converted about half of the gas reser-
voirs discovered during its 80-year history into storage
facilities with long useful lives – a figure unmatched
anywhere in the world. By progressively expanding its
storage capacity, RAG has added a key additional link
to its supply chain, and in doing so has developed a
sustainable form of gas production.
RAG operates gas storage facilities with a combined
capacity of around 6 billion cubic metres. These storage
facilities are used to supply customers in Austria and
abroad, and include joint ventures with major multi-
nationals such as Gazprom and Uniper. RAG’s storage
capacity is marketed by a wholly-owned subsidiary,
RAG Energy Storage GmbH.
„In the past decade RAG has extended its value chain by progressively expanding its storage capacity, and in so doing it has effectively developed a sustainable form of gas production. We have now converted about half of the gas reservoirs discovered in our 80-year history into storage facilities, giving them long useful lives. This is a figure unmatched anywhere in the world.”
Markus Mitteregger, Chief Executive Officer, RAG
Balancing out demand swingsNatural gas is produced throughout the year, at roughly
constant rates. Austria’s imports are transported along
long-distance pipelines from Norway and Siberia, and
as LNG cargoes. The amount of gas consumed by
industry, power stations and households varies accor-
ding to the season and time of day. Demand is much
higher in winter than in summer, and more gas is used
during the day than at night. Gas must be stored to
balance out these swings in demand, and to ensure
that it is available when needed.
Efficient, sustainable and safe – storage in depleted reservoirsUse of depleted gas reservoirs is the safest, most
efficient and most environmentally friendly way of
stockpiling energy. Austria has geological structures
that are unique in Europe and ideal for gas storage.
New supplies can be stored in depleted reservoirs
where gas accumulated naturally over millions of years,
at depths of over 1,000 metres. These former gas fields
originated over 20 million years ago, when organic
matter in the primeval ocean that occupied today’s
Prealps was trapped by sandstone sediments. Over
time the gas migrated into the pores of the sandstone,
forming gas reservoirs that can have an area of several
square kilometres. Clay strata several hundred metres
thick overlie the gas reservoirs, and this natural insula-
ting layer makes them an extremely safe means of
underground storage. The proof of this comes from
nature itself, since the original gas reserves were held
there for millions of years.
Gas storage – the perfect partner for renewablesToday’s growing use of renewable energy sources has
given RAG’s gas storage facilities a vital new role.
Together, environmentally friendly natural gas and
renewables are a dream team. Natural gas from storage
is a dependable source of energy to balance out the
swings in wind and solar power output. For their share
of the energy mix to keep on expanding, renewables
need a partner to even out these fluctuations – and
natural gas fits the bill perfectly. It is easy to store, and
gas-fired power stations are not only environmentally
friendly and efficient, they also offer outstanding ope-
rating flexibility. They are able to react immediately to
falls in output from wind and solar installations.
An important development for the future will be injec-
tion of gas generated using wind and solar power
(hydrogen or methane) into existing gas infrastructure.
Biogas (biomethane) will also play an increasingly
important role.
20 RAG COMPANY PROFILE STORE 21
To keep down the number of wells, some cushion gas
is always left in the reservoir. The working gas above it
is injected and withdrawn as required. The cushion gas
compensates for the pressure drop that occurred when
the original natural gas reserves were extracted, allow-
ing for maximum operational efficiency. This cuts ope-
rating costs and helps maintain high environmental
standards.
Certified safety procedures RAG has demonstrated that it is equal to the technical
challenges posed by gas storage. The company’s state-
of-the-art storage facilities are permanently monitored
and maintained. Highly skilled staff run the installa-
tions from a dispatching centre, working around the
clock to maximise efficiency and optimise environmen-
tal and technical performance. RAG is also an industry
leader in terms of safety, and the entire safety manage-
ment system at RAG’s installations is based on audited
processes. In September 2009 RAG became the first
European company to obtain Technical Safety Manage-
ment (Technisches Sicherheitsmanagement, TSM) cer-
tification from the German Technical and Scientific
Association for Gas and Water (Deutscher Verein des
Gas- und Wasserfaches e.V., DVGW). A surveillance
audit carried out in 2014 did not give rise to any ob-
jections.
Systematic quality and environmental management,
and strict health and safety standards are central to
RAG’s philosophy.
From fields to facilitiesStoring gas in depleted reservoirs is certainly one of the most efficient, eco-friendly and safe ways of stockpiling energy – but it takes a lot of expertise to get it right. A modern storage facility is a masterpiece of engineering. RAG’s extensive gas storage experience has enabled it to continuously develop its know-how in this area. Our state-of-the-art technology makes our facilities highly flexible and safe.
After a gas reservoir has ceased to be productive it can
be used as a storage facility instead. When gas arrives
at a storage facility via a pipeline network it first enters
a metering station where it is filtered, and the quantity
and quality are measured. Injection and withdrawal
take place via a number of wells. Where necessary,
compressors bring the incoming gas up to the right
injection pressure. Since compression raises the tem-
perature, the gas must then be cooled before being
conveyed to the wellhead and injected into the natural
rock formations. Care must be taken not to exceed the
original reservoir pressure. The gas is withdrawn when
it is needed, and processed for transportation. It must
be dried as it will have absorbed moisture in the reser-
voir. Once it is on-specification it enters the grid and is
transported to the consumer.
Conserving resources and the environment Husbanding natural resources and good environmen-
tal stewardship play a vital role in gas storage, and all
the processes at storage facilities operated by RAG are
designed for maximum eco-friendliness. Minimising
energy use and emissions, preventing waste, and using
cutting-edge technology to monitor the plant and pipe-
lines are particularly vital. In 2013, we augmented our
existing internal control system by introducing an
energy management system based on the ÖNORM EN
ISO 50001:2011 standard.
„After starting out over 30 years ago with 50 million cubic metres of storage capacity in Puchkirchen, today we are the fourth biggest storage operator in Europe. We have a wealth of experience and around 6 billion cubic metres of capacity – that’s an increase of more than a hundredfold.“
Markus Mitteregger, Chief Executive Officer, RAG
When gas arrives at a storage facility via a pipeline
network it first enters a metering station where it
is filtered and the quantity and quality are measu-
red. Injection and withdrawal take place via a
number of wells. Where necessary, compressors
bring the incoming gas up to the right injection
pressure. Since compression raises the tempera-
ture, the gas must then be cooled before being
conveyed to the wellhead and injected into the
natural rock formations. Care must be taken not to
exceed the original reservoir pressure. The gas is
withdrawn when it is needed, and processed for
transportation. It must be dried as it will have
absorbed moisture in the reservoir. Once it is on-
specification it enters the grid and is transported
to the consumer.
STORE 2322 RAG COMPANY PROFILE
How a gas storage facility worksHow a gas storage facility works
Use of advanced horizontal drilling techniques means that the well profiles support quick and efficient gas injection and withdrawal.
Gas reservoir
Pores in the thin section
05
09
02
06
10
03
07
11
04
08
0 m
500 m
1,000 m
1,500 m
Pipeline link to public grid
Metering station
Compressor station
Cooling units
Wellhead
Well
Reservoir
Preheater
Pressure reduction station
Drying units
Control room and stores
01 05 09
02 06 10
03 07 11
04 08
01
24 RAG COMPANY PROFILE
Nussdorf/ZaglingRAG built this facility between 2011 and 2014, as part of
the 7Fields project, and it was commissioned in April
2014. It has a working gas volume of 289 million cubic
metres (equivalent to 3.3 terawatt hours), with an injec-
tion capacity of 120,200 cubic metres per hour (1.3 giga-
watts) and withdrawal capacity of 150,000 cubic metres
per hour (1.7 gigawatts).
2016 performance indicators (TWh, GW and MW thermal)
Reservoir area 7 x 1.6 km / 2 x 2 km
Reservoir depth 1,470 m / 1,351 m
Working gas volume 3.3 TWh 289 mn cu m
Withdrawal capacity 1.7 GW 150,000 cu m/h
Injection capacity 1.3 GW 120,200 cu m/h
Capacity at these four storage sites is marketed by
RAG’s wholly-owned subsidiary RAG Energy Storage
GmbH.
www.rag-energy-storage.at
Joint venture storage facilitiesHaidachThe Haidach gas storage facility is a joint venture
between RAG, Russia’s Gazprom Export and Germany’s
Wingas. It was built at a cost of about EUR 300 million,
excluding cushion gas. RAG was responsible for
design and construction and operates the facility. GSA
and astora market the capacity.
The first development phase was completed in 2007,
and the second in April 2011. The total storage capacity
of 2.64 billion cubic metres of natural gas is equivalent
to a quarter of annual gas consumption in Austria.
Haidach is the second-largest storage facility in Central
Europe.
2016 performance indicators (TWh, GW and MW thermal)
Reservoir area 3.5 x 5 km
Reservoir depth 1,600 m
Working gas volume 29.9 TWh 2,640 mn cu m
Withdrawal capacity 12.4 GW 1.1 cu m/h
Injection capacity 11.3 GW 1.0 cu m/h
7FieldsThe 7Fields facility is a joint venture project between
RAG and Germany’s Uniper. As with Haidach, RAG was
responsible for design and construction, and operates
the facility. EGS markets the capacity. The first develop-
ment phase was completed in April 2011, after just two
years’ construction time, and the second phase was
finished in April 2014. Storage capacity now totals some
1.7 billion cubic metres. The site is unique in Europe,
with four storage stations connected via pipelines to
three metering stations and to the Austrian and inter-
national gas grids.
2016 performance indicators (TWh, GW and MW thermal)
Reservoir depth 1,300 to 2,300 m
Working gas volume 19.6 TWh 1,733 mn cu m
Withdrawal capacity 10.2 GW 903,000 cu m/h
Injection capacity 6.8 GW 602,000 cu m/h
Total storage capacity of facilities of operated by RAG (TWh, GW and MW thermal)
Working gas volume 66.6 TWh 5,888 mn cu m
Withdrawal capacity 31.0 GW 2,743,800 cu m/h
Injection capacity 26.2 GW 2,312,200 cu m/h
STORE 25
RAG’s gas storage facilitiesPuchkirchen/HaagRAG began storing gas in Puchkirchen, Upper Austria.
This was the site of its first Austrian natural gas disco-
very, made in 1956. In 1982, after more than 25 years’
production, RAG began using the gas reservoir as a
storage facility. The last of a number of expansions was
completed in 2009, and in the summer of that year
Puchkirchen was linked with the Haag facility by a
20-kilometre pipeline. The Puchkirchen gas storage
facility has a maximum working gas volume of about
1.1 billion cubic metres (equivalent to 12.2 terawatt
hours),and injection and withdrawal capacity of 520,000
cubic metres an hour (5.9 gigawatts).
2016 performance indicators (TWh, GW and MW thermal)
Reservoir area 6 x 2 km / 5 x 2 km
Reservoir depth 1,100 m / 1,000 m
Working gas volume 12.2 TWh 1,080 mn cu m
Withdrawal capacity 5.9 GW 520,000 cu m/h
Injection capacity 5.9 GW 520,000 cu m/h
AigelsbrunnGas production at this field started in 2001. Develop-
ment of the gas storage facility began in 2008, and it
was commissioned on 1 April 2011. Aigelsbrunn has a
maximum working gas volume of approximately
130 million cubic metres (equivalent to 1.5 terawatt
hours), and injection and withdrawal capacity of 50,000
cubic metres per hour (equivalent to 566 megawatts).
2016 performance indicators (TWh, GW and MW thermal)
Reservoir area 1.5 x 1 km
Reservoir depth 1,350 m
Working gas volume 1.5 TWh 130 mn cu m
Withdrawal capacity 566 MW 50,000 cu m/h
Injection capacity 566 MW 50,000 cu m/h
Haidach 5The repurposing of the depleted gas formation as a
storage reservoir was carried out in 2005. Haidach 5
has a maximum working gas volume of around 16 bil-
lion cubic metres (equivalent to 181 gigawatt hours),
and injection and withdrawal capacity of 20,000 cubic
metres per hour (226 megawatts).
2016 performance indicators (TWh, GW and MW thermal)
Reservoir area 0.5 x 1 km
Reservoir depth 1,450 m
Working gas volume 181 GWh 16 mn cu m
Withdrawal capacity 226 MW 20,000 cu m/h
Injection capacity 226 MW 20,000 cu m/h
26 RAG COMPANY PROFILE SUPPLY 27
Oil and gas: valuable global commoditiesRAG’s core businesses are oil and gas exploration and production, and gas storage. These activities are concentrated in Austria and Germany. Our crude oil is processed at refineries that are close to our production sites. Some of our natural gas output is consumed in our region and the remainder is marketed elsewhere. RAG also has inter-national gas trading operations, and supplies domestic and foreign energy companies and industrial consumers. We specialise in providing flexible and secure supplies of oil and gas produced from domestic reserves.
In the past, RAG’s gas output was sold almost exclusi-
vely to the company’s owners. This was in the days
before gas market liberalisation, when contract design
and fulfilment were still a simple matter. The pace of
change has been rapid since then. The EU’s energy
liberalisation efforts, initiated in 1998, have opened up
the gas markets in large parts of Western and Central
Europe, and traders and suppliers can now buy and sell
gas on increasingly liquid exchanges and trading plat-
forms. As a result of gas market liberalisation in 2002,
RAG was able to market its gas production outside
Austria and the focus switched away from sales at
entry points to the national low pressure grid, towards
exports via virtual trading points. RAG has since made
a name for itself as an agile, independent company. In
2002 our natural gas sales topped one billion cubic
metres for the first time. We have progressively built
up a trading and supply department which operates on
markets throughout Europe. RAG is a member of a
number of European gas hubs and exchanges. EU-
wide gas liberalisation and the creation of entry/exit
systems have opened up new trading opportunities.
With pricing increasingly decoupled from oil and
driven by spot quotations, the influence of European
trading points and exchanges is steadily growing. The
resultant price volatility is making supply portfolio
construction and risk management more challenging.
RAG also produces and supplies liquefied natural
gas (LNG) for use as a low-carbon fuel or to make
gas available to isolated industrial and commercial
consumers.
Supply
„Security of supply is the core issue for the energy sector. That’s our mission, too, and we are unconditionally committed to it. When everything is running, people tend to forget how vital total security of supply is in an emergency. But it’s important to remember that when needed, our Haidach, 7Fields and Puchkirchen gas storage facilities push out 30,000 megawatts of energy! We supply the regional utilities – we are the backbone of their services. Our storage facilities have to keep functio-ning, come what may, and be ready to spring into action at any time. That’s our day-to-day business, but it shouldn’t be taken for granted. There’s a lot of high tech behind the scenes.”
Markus Mitteregger, Chief Executive Officer, RAG
Concessions
GERMANY4,070 sq km
Lübben1,479 sq km
RAG Rohöl-Aufsuchungs Aktiengesellschaft
RDG GmbH & Co. KG
* Operator RDG
AUSTRIA 6,142 sq km
Vienna RAG corporate headquarters
Zistersdorf
HUNGARY2,993 sq km
ROMANIA1,106 sq km
Status September 2016
RAG is gradually adding to its Austrian concessions with sites in Germany, Hungary and Romania, Focusing on oil and natural gas exploration and production (E&P) in geologically comparable areas. Our customers and partners also benefit from our expertise in services closely related to the group’s core business.
Kelebia532 sq km
Kiskunhalas2,461 sq km
Parta1,106 sq km
Budapest RAG headquarters in Hungary
Hannover RDG headquarters
Operational headquarters
Upper AustriaLower Austria
Salzburg6,142 sq km
Salzach-Inn*2,248 sq kmTannheim
139 sq km
Aubach*204 sq km
30 RAG COMPANY PROFILE
Meantime between Failure
– Reduce expensive workover
– Saving of operating costs: ~80.000 $/well/year
180
160
140
120
100
80
60
40
20
0
Num
ber o
f Fai
lure
s / 1
00 W
ells
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Failures / 100 Wells
MTBF: Meantime between Failure
MTBF 0.6 years
MTBF 6.8 years
Source: RAG Data
Bespoke services for customers and partners
SERVICES AND SOLUTIONS 31
Throughout our history we have constantly driven
innovation in our core areas of activity.
RAG Technology Sales & Services (TSS) is responsible
for marketing and sales of technologies, products, ser-
vices and turnkey solutions developed and applied by
the Group to promote efficient oil and gas production.
Listen to your reservoirTSS is the exclusive distributor of MURAG-20, an inno-
vative technology for fully automated well fluid level
measurement, monitoring and control of deep well
pumps, and characterising reservoirs for the purposes
of optimising production and increasing the value of
reserves. RAG can look back on 80 years of profitable
development and operation of mature oil and gas
reservoirs with high water content. Based on this long
experience in tail-end production, TSS also offers
clients full-line solutions for gas well dewatering, pump
recovery methods, gas well pressure reduction, coated
and surface-hardened materials, and corrosion preven-
tion methods, all with the aim of increasing extraction
from old and small fields, and enhancing their value.
RAG has a long tradition in exploration, production and gas storage, and our customers and partners in Austria and abroad can now reap the rewards of the expertise we have built up over the years.
Our service portfolio% Cost-efficient production for reservoirs with up to
98% water content
% A range of services based on our experience as experts on mature fields
% Profitable, efficient operation of mature fields
% High levels of automation
% Reduction of corrosion to a thousandth of its former level
% Extension of well useful life by up to seven years without interruptions
% Development of proprietary technology on the basis of our experience and expertise
% Reduction of unit operating costs to USD 1 per barrel fluid
PRODUCTS
SERVICES
INTERPRETATIONSERVICES
ENGINEERINGSERVICES
PRODUCTIONSERVICES
INTEGRATEDSOLUTIONS OIL & GAS
32 RAG COMPANY PROFILE SUSTAINABLE ENERGY PROJECTS 33
Natural gas vehicles RAG’s first self-service natural gas filling station, loca-
ted at the company’s site in Gampern, Upper Austria
(near Vöcklabruck), opened to the public in 2014, and a
second station at Krift near Kremsmünster was opened
in June 2016. Both are available 24 hours a day. More
filling stations will be opened in RAG’s exploration and
production areas in the coming years, opening up con-
sumer access to environmentally friendly, affordable
natural gas as a fuel for vehicles. As a producer of
natural gas and operator of gas storage facilities, RAG
can guarantee a crisis-proof supply of fuel at stable
prices over the long term. RAG is also leading a research
project for underground storage of wind and solar
energy (www.underground-sun-storage.at), which aims
to provide renewable gas for use in vehicles.
In addition, we offer custom solutions to commercial
and industrial enterprises, utilising our extensive ex-
perience in plant engineering and gas plant operations,
such as works compressed natural gas (CNG) filling
stations. In 2015, RAG’s first plant for producing lique-
fied natural gas (LNG) was commissioned. The process
involves cooling methane to a very low temperature,
so that it is converted into a depressurised liquid state.
The volume of the gas shrinks by a factor of 600, but it
retains the same amount of energy. LNG is already
used in some European countries as a fuel for heavy
goods vehicles, and is seen as the fuel of the future due
to its many advantages. A significant reduction in CO2
emissions from vehicles is essential to meet the targets
set at the UN Climate Change Conference in Paris
in 2015. Greater use of CNG and LNG can make
this possible.
Gas on the goNatural gas is frequently required for testing purposes
or as emergency supply in a variety of situations that
occur in the operation of gas plants and transmission
systems. Since gas cannot always be withdrawn from
pipelines, RAG has acquired extensive experience in
compressing natural gas (methane) to produce CNG,
and in transporting CNG. This expertise is also available
to our customers, forming part of the portfolio of
products and services we offer.
Efficient, decentralised, renewable energy generation that exploits all the available synergies will be one of the main props of security of supply in tomorrow’s world. Massive efforts in this direction are being made across Europe, and RAG is leading the way in Austria. We have embarked on a raft of innovative projects aimed at eco-friendly and efficient generation of the energy required for oil and gas production and storage, as well as providing decentralised energy services and exploiting geothermal energy resources.
Sustainable energy projects
Deep geothermal energy for Neukirchen an der VöcklaRAG has contributed its extensive know-how to a pio-neering project in Upper Austria that marks a major step towards integrating conventional and renewable energy production. The Mühlleiten ML-002 well in the Neu-kirchen an der Vöckla area, completed in 2009, did not result in a commercial discovery. However, with a downhole temperature of 105°C, the 2,850-metre deep well is an ideal source of geothermal heat – an excep-tionally eco-friendly and sustainable energy form because it is always available and output is constant. In 2012 Mühlleiten ML-002 was turned into a deep geo-thermal well. The system captures geothermal heat in the same way as the shallow borehole heat exchangers used by detached houses. However, the fact that rock temperatures are much higher at a depth of 2,850 metres means that it is far more efficient. The heat in the rock is transported to the surface by treated water. A heat exchanger extracts the energy from the hot water, after which the cooled water is returned to the geothermal reservoir, creating a closed cycle. The pro-duced heat is sent along a one-kilometre underground pipeline link around the edge of the town to Bioenergie Neukirchen, which operates a biomass heating plant and district heating network. The geothermal energy from the RAG well supplies about 100 homes. The deep borehole heat exchanger in Neukirchen will serve as a model for other RAG projects.
Decentralised geothermal energy suppliesSustainable use of Austria’s oil and gas resources is
RAG’s overriding aim. This includes geothermal
after-use of dry or depleted wells. Several geothermal
schemes in Austria and Germany have grown out of
RAG wells, and other projects are in the pipeline. The
1,200 or so wells that the company has drilled in its
lifetime have yielded valuable information on reserves
of thermal, curative and drinking water. Wells have
been successfully reused for geothermal and spa pro-
jects in the municipalities of Geinberg, Obernberg and
Weibern in Upper Austria, and Waltersdorf, Blumau
and Loipersdorf in Styria.
Geothermal district heating has many advantages. It is
climate friendly and efficient, and locks in stable prices
for users. It is free from the output swings that plague
wind and solar, is decentralised, and has no visual im-
pact because it is transported underground. And short
transportation distances keep down system losses –
another gain for the environment.
Energy savings through CHPRAG strives to produce, distribute and use the energy
needed by its E&P and gas storage operations as
efficiently and sustainably as possible. Since many of
our installations require both heat and electricity,
combined heat and power (CHP) plants are ideal. These
are particularly efficient if any surplus output of either
energy form is fed into the public grid. We are focusing
on the development of small and medium-sized plants
with flexible output that can be quickly ramped up and
down to meet current needs, and siting them at loca-
tions where maximum use can be made of existing
infrastructure. RAG operates CHP plants in Krems-
münster and Strasswalchen.
34 RAG COMPANY PROFILE
Underground Sun Storage – stocking up on sunshine
Harvesting, storing and supplying solar energy: RAG is currently testing this groundbreaking approach to energy production and storage in a unique pilot project. Storage of hydrogen, produced using solar energy, is being trialled at a small, natural, depleted gas reservoir in Pilsbach, Upper Austria.Thanks to their storability, renewables are the only energy forms that can act as a straight replacement for conven-tional energy – and the gas storage facilities already ope-rating in Austria provide the necessary infrastructure. In terms of the strategic development of energy systems for the future, the results of the pilot will be hugely signifi-
cant for companies, political decision-makers and public authorities. The project was selected by an international panel of experts and is being financed by Austria’s Climate and Energy Fund.For more information visit www.underground-sun-storage.at
the same way as conventional natural gas to fuel
domestic space or water heating, industrial processes,
and fleets of gas-powered vehicles, or alternatively for
gas-fired electricity generation. The process gives rise
to no emissions apart from the oxygen released when
the water is split. Today the efficiency of the conversion
process is already about 60% – a big step forward in
view of the fact that surplus electricity is often not used
at all owing to the lack of storage capacity, and instead
wind turbines are idled or whole wind farms taken off
the grid.
Using existing gas infrastructure Thanks to methanisation, electricity can be converted
into gas, making large-scale power storage possible for
the first time. The process solves one of the biggest
problems posed by electricity storage – shortage of
space. It can simply fall back on existing natural gas
infrastructure, in the shape of the pipeline grid and the
gigantic storage facilities. Instead of developing and
rolling out expensive and elaborate new storage tech-
nologies, the power would be transformed into synthe-
tic natural gas and stored in depleted gas reservoirs.
„Europe is committed to renewables, but we need reliable energy supplies around the clock. Only gas can pull that off. Cutting-edge power-to-gas technology is capable of transporting and storing solar and wind energy affordably, which would make them constantly available. The infrastructure is already in place – we have the pipelines and storage facilities to do the job.”
Markus Mitteregger, Chief Executive Officer, RAG
RESEARCH AND DEVELOPMENT 35
Research and developmentWind + sun = gas – this is the equation behind “power to gas”, a revolutionary new technology that could hold the key to affordable transportation and storage of solar and wind energy. Together, versatile natural gas and renewables are a dream team. Sometimes the wind does not blow or the sun goes in, while at other times surplus power is produced. For their share of the energy mix to keep on growing over the long term, renewables need a means of compensating for fluctuations in output.
Huge potential Intermittent renewable electricity output is not the only
problem. Something will also have to be done with all
the excess power generated by giant wind farms and
solar parks at times when demand is low. This surplus
energy needs to be stored so that it can be made availa-
ble during peak periods, but the capacity of the pumped
storage plants used to date is far from sufficient. The
answer is gas. The gas transportation and storage
infrastructure in place has all the makings of a buffer
storage system for green power.
Eco-friendly technology Energy companies and research institutes in Austria
and Germany are working intensively on new approa-
ches to efficient, large-scale electricity storage. Power
to gas technology is particularly promising. This involves
converting renewable electricity into gas and using
existing gas infrastructure to transport and store it. The
principle behind this new, environmentally friendly
technology could hardly be simpler. Surplus solar and
wind power is used to split water into oxygen and
hydrogen by means of electrolysis. This is followed by
the methanisation stage, in which the hydrogen is
reacted with carbon dioxide (CO2). The CO2 can be
drawn from the atmosphere or it can come from a bio-
gas or industrial plant. The product of the process is
renewable synthetic natural gas. Methane is the main
constituent of natural gas, making up around 98% of its
content. It can be injected into the gas grid and used in
36 RAG COMPANY PROFILE A RESPONSIBLE CORPORATE CITIZEN 37
Respectful employee relationsEqual opportunities, integration and diversity play a
vital role in RAG’s corporate philosophy. The company
has employees from 17 different countries, and all of
them are treated equally in terms of pay and career
opportunities regardless of their gender, religion, cultu-
ral background or ethnicity.
Maintaining an open-door culture where communica-
tions can thrive has been part and parcel of day-to-day
operations at RAG for decades. This involves a host of
different measures, including welcome workshops, a
staff magazine, regular compulsory staff appraisals,
and employee forums.
„Maintaining an open-door culture where communications can thrive has been part and parcel of day-to-day operations at RAG for decades – and this lies at the heart of our success.“
Michael Längle, Chief Financial Officer, RAG
An internal mentoring system has also proved its
worth. Every new employee is allocated a mentor who
is responsible for guiding them through their first year
with the company and helping them to settle in as
quickly as possible.
An inspirational environmentWe are committed to providing our 400 employees
with high-quality, flexible and secure working condi-
tions, and a stable, creative working environment, and
to deploying them as effectively as possible in line with
their abilities, as well as promoting and supporting
their personal development.
Every year RAG invests heavily in occupational health
programmes and staff training schemes. The manage-
ment team also gives prominence to measures aimed
at improving workplace safety and adopts a proactive
approach when it comes to implementing employee
health projects. Our in-house health promotion
Taking responsibility for our employees
Providing environmentally friendly, safe and affordable
energy for the future is RAG’s greatest challenge. The
steady rise in global energy demand means that
responsible use of the valuable energy resources at our
disposal, protecting the environment and gaining
acceptance as a good neighbour are more important
than ever for our commercial success.
Responsible management
„CSR is a key component of RAG’s corporate strategy and management policies.“
Michael Längle, Chief Financial Officer, RAG
At RAG, corporate social responsibility (CSR) means
carefully considering the financial, ecological and social
aspects of each and every business decision. We are
aware that our activities have impacts on society and
the environment. With this in mind, our cross-depart-
mental CSR team regularly develops and updates the
topics that are relevant to our stakeholders and impor-
tant to our business. When it comes to CSR-related
measures, we adhere to the international ISO 26000
standard on social responsibility.
Our decision-making processes take account of our
responsibilities to our employees, customers, share-
holders and business partners, as well as to society
and the environment. Our activities are broken down
into these different areas of accountability, and we
follow the applicable guidelines on corporate gover-
nance, compliance and integrity. All of these considera-
tions are integrated into our internal policies and
underpin RAG’s success. In order to learn more about
our stakeholders’ interests and needs, and their
expecta tions of RAG, we are constantly expanding the
dialogue and communication processes integrated into
the preparation and implementation of our projects.
A responsible corporate citizenA responsible approach to business is vital to securing energy supplies for the future.
38 RAG COMPANY PROFILE A RESPONSIBLE CORPORATE CITIZEN 39
scheme offers employees a selection of free courses,
such as nutrition, exercise and relaxation programmes,
as well as initiatives that reflect the latest health-related
trends. Our monthly health newsletter is designed to
encourage staff to participate in the group’s internal
activities, and spotlights topical issues. We also work
closely with healthcare facilities operated by the social
insurance fund for the Austrian mining industry, and
with company doctors. In January 2013 RAG was
awarded the Austrian Health Ministry’s quality seal for
workplace health promotion; the seal for the 2016–2018
period was received in March 2016. In February 2016
RAG received the NÖ Vorsorgepreis (Lower Austrian
Preventive Health Care Award). Our “Gesundheit ver-
bindet” (health connects people) project was the natio-
nal winner in the Companies category.
In 2012, in response to a need for increased
flexibility, RAG introduced new working
time and working practices models in
addition to the existing structures.
Employees also have the option of taking
various types of sabbaticals, and a range
of part-time working arrangements are
available for older employees. Flexible,
personalised working time models give
our people the space they need to develop,
as well as boosting motivation.
Reusing natural reservoirs and wellsRAG’s core areas of business are oil and gas explora-
tion and production and gas storage. In order to ensure
the company’s long-term survival, we are constantly
enhancing our core operations through innovation,
and research and development (R&D).
Thanks to our use of depleted natural gas reservoirs as
gas storage facilities, in the past few years we have
made significant strides in enhancing Europe’s security
of supply, as well as implementing a new form of
sustainable production of natural resources. We have
now converted about half of the gas reservoirs dis-
covered in our 80-year history into storage facilities
with long useful lives – a figure unmatched anywhere
in the world.
RAG invests heavily in innovative projects designed to
promote decentralised energy supply. This includes
geothermal after-use of dry or depleted wells.
One such project – a deep borehole heat exchanger
working in combination with a biomass plant – supplies
more than 100 households in Neukirchen an der Vöckla
in Upper Austria with environmentally-friendly heating
sourced from 2,850 meters below ground. This pionee-
ring scheme marks a major step towards integrating
conventional and renewable energy production (see
page 33 for more information).
Research into groundbreaking technologiesRAG has initiated various research projects aimed at
converting renewables such as wind and solar power
into gas that can then be transported and stored using
existing natural gas infrastructure. The Underground
Sun Storage project is being financed by Austria’s
Climate and Energy Fund (see page 35 for more infor-
mation).
Efficient use of energy and resourcesWe aim to use and distribute the energy required for
our operations as efficiently as possible. The commis-
sioning of CHP plants in Strasswalchen and Krems-
münster has enabled us to make particularly efficient
use of electricity and heat from our production and
storage facilities, and to inject energy into the public
grid (see page 33 for further information).
A project to reduce vehicle emissions has been in place
for several years – this involves upgrading the vehicle
fleet so that it is predominantly made up of natural gas
vehicles, and building the necessary filling stations.
These measures will reduce CO2 emissions significant-
ly compared to conventional fuel types, and in some
cases eradicate pollution (especially fine particulate
dust) altogether. Our goal is to make it simpler for RAG
employees and customers, and the general public
to switch to environmentally-friendly and affordable
technology.
Environmental protection When constructing production facilities, RAG takes
preservation of the natural environment into account at
the planning stage, as part of the environmental analy-
sis. Locations are carefully selected, with the amount of
land used as well as emissions and damage to the
landscape kept to an absolute minimum. The land is
restored to its previous state once the project has been
completed. When it comes to constructing permanent
facilities such as those for gas storage, RAG is commit-
ted to creating compensation areas. We also aim to
continually expand cooperation with public authorities,
environmental protection experts, planners, local
councils and landowners, and to take account of their
requirements and interests from an early stage.
Protecting the environment
40 RAG COMPANY PROFILE A RESPONSIBLE CORPORATE CITIZEN 41
RAG’s top priority is eliminating the potential risks and
dangers facing all of the people employed by the group
and those living in the areas where we operate, as well
as avoiding damage to the environment.
But preventing accidents does not just mean comply-
ing with statutory requirements. We have set a goal of
zero accidents in all of our activities, and in order to
achieve this we have established a dedicated mana-
gerial unit which systematically monitors adherence to
our targets on the basis of the internal health, safety
and environment (HSE) management system, and
supports their consistent application and improvement.
In addition to implementing workplace safety measu-
res aimed at the company’s own employees, we also
work closely with contractors on safety-related initia-
tives. Clearly defined processes, efficient communica-
tion and specific guidelines and instructions enable
us to meet the highest possible health and safety
standards for external contractors’ staff.
All of RAG’s processes are designed to maximise
environmental soundness. Minimising energy use and
emissions, and using cutting-edge technology and
methods to reduce waste and monitor the company’s
plant and pipelines are particularly important.
RAG introduced an internal control system for its
storage operations in 2011, meaning that it began
systematically collecting, analysing and interpreting all
energy-related data. This information feeds into energy-
saving programmes. Additionally, in 2013 RAG’s energy
management system for its storage operations, which
is based on the ÖNORM EN ISO 50001:2011 standard,
was evaluated by an external auditor and certified
accordingly. Certification in accordance with the stan-
dard was extended to the entire group in 2015. This is
also in accordance with the provisions of the Bundes-
Energieeffizienzgesetz (Federal Energy Efficiency Act),
which transposes the EU’s Energy Efficiency Directive
(2012/27/EU). In addition, our storage operations have
received the Technical Safety Management (Techni-
sches Sicherheitsmanagement, TSM) certificate from
the German Technical and Scientific Association for
Gas and Water (Deutscher Verein des Gas- und Wasser-
faches e.V., DVGW).
RAG Energy Drilling has obtained unrestricted certifi-
cation under the international SCC** work safety stan-
dard, and was also certified under the ISO 14001:2004
environmental management standard in spring 2014.
In 2015 RAG Energy Drilling implemented a quality
management system in accordance with ISO 9001:2008
as well as an occupational health and safety manage-
ment system in accordance with the OHSAS 18001:2007
standard. Both systems underwent external audits in
January 2016 and certification was obtained in March
2016, meaning that RAG Energy Drilling now has a
certified quality, occupational health and safety and
environmental management system.
„Cutting-edge process engineering, high- efficiency plants and some of the most stringent safety standards anywhere in Europe, as well as the efforts of our employees ensure that security of supply is ingrained in our day-to-day operations.“
Kurt Sonnleitner, Chief Technical Officer, RAG
RAG has a strong reputation for forging long-term rela-
tionships with its contractual partners and suppliers.
Fair and proper business dealings, integrity and trans-
parency are central to these partnerships. We are stron-
gly committed to working with companies that respect
and operate in line with our corporate philosophy. As
part of our corruption prevention efforts, compliance
guidelines are in place with rules for staff conduct in
respect of gifts, invitations, other benefits and conflicts
of interest. Adherence to internal guidelines and
processes is ensured by means of staff training, the
four-eye principle and an internal control system.
Being a good neighbour will be critical to maintaining
sustainable energy supplies in the future. Responsible
treatment of all stakeholders, especially residents and
local authorities in the areas where we operate, has
always been an article of faith for RAG. We aim to
minimise the environmental and social impact of our
activities by engaging in detailed discussions with
stakeholders. Constant communication with local
authorities, public agencies and key local institutions
are essential for building solid partnerships. This is
why we are redoubling our efforts to provide our stake-
holders with comprehensive information and to
engage in open dialogue with them. We look to involve
all of the relevant parties in administrative procedures
to the greatest possible extent, with the goal of foste-
ring acceptance of and trust in our operations and
capabilities.
Throughout its history, RAG’s activities have promoted
regional economic growth, and as a major employer
and contractor, the company makes an important
contribution to the Austrian economy.
Guided tours of our facilities, open days and numerous
partnerships demonstrate the strength of our commit-
ment to the regions where we operate.
We carry out regular training and drills with local
volunteer fire brigades, and offer paid internships and
supervision of master’s theses for students of the
University of Leoben. RAG also supports various regio-
nal social projects.
Safety – protecting staff, local residents and the environment A fair partner and a good neighbour
Dedicated to local communities
HISTORY OF RAG 4342 RAG COMPANY PROFILE
History of RAG1935Rohöl-Aufsuchungs Aktiengesellschaft (RAG) is formed on 15 October as Rohöl-Gewinnungs AG by Socony Vacuum Oil Company, Inc. (now Exxon Mobil Corporation) and N.V. de Bataafsche Petroleum Maatschappij (now Royal Dutch Shell plc).
1937RAG 2 well in Zisterndorf makes first oil discovery; production starts.
195627 May: Puchkirchen 1 is brought onstream, marking the start of the first development project in Upper Austria. 1966
RAG makes its first gas shipment in Upper Austria, from the Voitsdorf field to Kirchdorf an der Krems.
1982The Puchkirchen gas storage facility, with a capacity of around 40 million cubic metres of working gas, is built.
1992EVN Energie Versorgung Niederösterreich acquires 50 percent of the shares, with Mobil Oil Austria and Shell Austria AG each taking 25 percent stakes.
1993EVN transfers its stake to the newly formed RAG-Beteiligungs-Aktiengesellschaft (RBG), in which Bayernwerke AG acquires a 40 percent holding, and SAFE and Steirische Ferngas Ges.m.b.H. each take 10 percent.
1997The largest ever gas discovery in the Austrian section of the Molasse basin – around 4 billion cubic metres – is made at Haidach.
RAG obtains an exploration permit from the Bavarian government for the 2,300 square kilometre Salzach-Inn conces sion – its first outside Austria.
1998Mobil Oil Austria sells its 25 percent stake in RAG to RBG. 2007
24 May: Inauguration of the Haidach storage facility.
Capacity at the Puch-kirchen storage facility is expanded to 850 million cubic metres.
Shell disposes of its stake, which is acquired by the other owners.
2011The Haidach II, 7Fields I and Aigelsbrunn gas storage facilities are completed. The total capacity of gas storage facilities operated by RAG reaches 5 billion cubic metres.
20141 January: Wholly owned subsidiary RAG Energy Drilling GmbH is formed.
1 April: Commissioning of phase two of the 7Fields facility.
The total capacity of the gas storage facilities operated by RAG reaches 5.8 billion cubic metres.
44 RAG COMPANY PROFILE HISTORY OF RAG 45
RAG disbands its in-house seismology team in response to technological developments and soaring costs. Prakla-Seismos GmbH is commissi-oned to carry out seismic surveys.
1969The Puchkirchen gas field is discovered.
1971RAG identifies the Sattledt and Atzbach oil fields.
19739 October: RAG changes its legal form and the company name is amended by shareholder resolution from Rohöl-Gewinnungs AG to Rohöl-Aufsuchungs Ges.m.b.H.
19751 October: The amended Berggesetz (Mining Act) comes into effect. RAG strikes the Trattnach oil field and the Friedburg gas field.
1976RAG finds the Pfaffstätt gas field.
1977RAG posts record gas sales, and the company’s gas production hits 880 million cubic metres.
1978Gas production rises to 882 million cubic metres.The first stage of the Kremsmünster Krift tank farm project is completed. This is required to comply with the Erdöl-Bevorratungs- und -Melde-gesetz (Oil Stockholding and Reporting Act).
1979RAG concludes a master agreement with Oberösterreichische Ferngas GmbH.The first stage of the Zistersdorf tank farm project is completed.The Kemating oil field is discovered.18 September: RAG merges with Österreichische Mineralölwerke GesmbH (ÖMW).
19802nd phase of the Kremsmünster Krift tank farm project is completed.
1981Rights arising from the nine exploration and production agreements are adapted to the new legal position (Mining Act 1975). RAG concludes new exploration, production and storage agreements with the government (for Upper Austria, Salzburg and Styria).The first North Sea gas imports start arriving.
1982The Puchkirchen gas storage facility, with a capacity of around 40 million cubic metres of working gas, is built. The Oberhofen well near Irrsee lake is drilled to a depth of 4,597 metres – RAG’s deepest well to date. Although the well is dry it yields important geological insights. 1 January: Crude oil production royalties rise from 15 percent to 20 percent and become statutorily regulated. 16 September: The second phase of the Zistersdorf tank farm project is completed. The Ried railway loading terminal enters service.
1983RAG begins supplying part of Kremsmünster with district heating.RAG encounters heavy oil for the first time in Upper Austria, in its Eggerding well.
1984A pilot CO2 flooding project begins at the Ried im Innkreis oil field. The basis for calculating natural gas production royalties is amended to 15 percent of the average annual import price. 3D seismic imaging is used for the first time at the Voitsdorf field.
1987RAG’s Zistersdorf field celebrates 50 years of production.
1988Gas shipments to Salzburg (SAFE) and Styria (Steirische Ferngas Ges.m.b.H.) begin. North Sea gas imports end.
1989The Berndorf field marks the first commercial gas discovery in Salzburg.Capacity at the Puchkirchen gas storage facility is expanded to 90 million cubic metres.
1991Oil production in Austria reaches 100 million tonnes, of which RAG contributes 13 million tonnes. The Berndorf 1 well is brought onstream.
1992Rohöl-Aufsuchungs Ges.m.b.H. is converted into an Aktiengesellschaft (public limited company). EVN Energie Versorgung Niederösterreich acquires 50 percent of the shares, with Mobil Oil Austria and Shell Austria AG each taking 25 percent stakes. RAG signs a storage contract with Austria Ferngas Ges.m.b.H. for 450 million cubic metres of working gas. 3D seismic imaging becomes standard, with 2D exploration used only in exceptional cases.The decision is taken to expand the Puchkirchen storage facility.
1993EVN transfers its stake to the newly formed RAG-Beteiligungs-Aktien-gesellschaft (RBG), in which Bayernwerke AG acquires a 40 percent holding, and SAFE and Steirische Ferngas Ges.m.b.H. each take 10 percent. Horizontal drilling begins at the Puchkirchen storage facility.
1995The expanded Puchkirchen storage facility comes online with a capacity of 500 million cubic metres of working gas.
1996RAG returns its Styrian concession after drilling ten dry wells. Three of them still supply thermal and curative water to the Loipersdorf, Waltersdorf and Blumau spas.
1997The largest ever gas discovery in the Austrian section of the Molasse basin – around 4 billion cubic metres – is made at Haidach.RAG obtains an exploration permit from the Bavarian government for the 2,300 square kilometre Salzach-Inn concession – its first outside Austria.
1998Mobil Oil Austria sells its 25 percent stake in RAG to RBG.
19991 January: The new Mineralrohstoffgesetz (Mineral Resources Act) comes into force, replacing the Mining Act 1975.RAG takes over the 835-square-kilometre Rosenheim-Traunstein concession in Bavaria from RWE-DEA.RAG carries out deep drilling for geothermal projects in Fürstenfeld, Styria, and Simbach-Braunau on the border between Bavaria and Upper Austria. At the end of the year, RAG spuds its first deep well in Bavaria, Tittmoning R1. The well is dry.
2000RAG discovers the Nussdorf West gas field.10 August: The Gaswirtschaftsgesetz (Natural Gas Act) comes into force.
2001RAG makes its first sales of gas to Germany and Italy.
20021 October: The Natural Gas (Amendment) Act comes into effect, paving the way for full liberalisation of the gas market.Capacity at the Puchkirchen storage facility is expanded to 700 million cubic metres.
1935Rohöl-Aufsuchungs Aktiengesellschaft (RAG) is formed on 15th of October as Rohöl-Gewinnungs AG by Socony Vacuum Oil Company, Inc. (now Exxon Mobil Corporation) and N.V. de Bataafsche Petroleum Maatschappij (now Royal Dutch Shell plc).
1936RAG drills its first deep well, RAG 1, but it is dry
1937RAG 2 well in Zistersdorf makes first oil discovery; production starts.
193813 March: Austria is annexed by Germany. Development of the Gaiselberg oil field begins.31 August: The German Bitumengesetz (Bitumen Act) comes into force, and RAG loses its exploration licence for the Vienna Basin as a result.
19391 September: Outbreak of the Second World War
194022 June: An “alien property custodian” is appointed to administer Royal Dutch Shell’s holding Under the Bitumen Act all existing exploration licences for bitumen become void as of 31 July. RAG explores structures around Wolkersdorf, Hohenruppersdorf, Aderklaa and Maustrenk (1940-41).
1941Germany declares war on America, resulting in the 1942 appointment of an alien property custodian for Socony Vacuum Oil Company’s stake in RAG.
19421942-43: The German Reich makes exploration and production agreements for Austria with German oil companies, in line with the 1938 Bitumen Act. Some relate to areas for which RAG previously held exploration permits.From 1942 onwards, RAG attempts to secure oil field services contracts from F. Koller & Sohn for the Bad Hall and Scheibbs concessions. Oil production at the Zistersdorf fields peaks at 319,610 tonnes.
1943RAG drills its first well into the flysch (RAG 36).RAG begins operations in the Maribor, Ljutomer and Ptuj areas in cooperation with R. K. van Sickle and Rumpel AG.
1944RAG discontinues its exploration activities in Maribor, Ljutomer and Ptuj.
1945Germany surrenders and the Second World War ends on 8 May. Output in RAG’s Zistersdorf permits has passed the 1.5 million tonne mark by the end of the war.2 May and 4 September: RAG applies for the restitution of its previous exploration permits.RAG is obliged to deliver its crude oil output to the newly established Soviet Mineral Oil Administration at a price fixed by the latter.
1946 At the Potsdam Conference, the Allied leaders agree that ownership of German property in each occupation zone is to pass to the occupying power concerned. The Red Army Supreme Command issues General Order 17, placing German-owned assets (including the Lobau refinery and concession rights) under Soviet control. All oil companies, including RAG, are nationalised by an act of parliament passed on 26 July. 13 September: The Austrian government publishes a declaration in the Wiener Zeitung, stating that all assets affected by the Verstaatlichungsgesetz (Nationalisa-tion Act) and owned by members of the United Nations will only be nationalised once the question of reparations has been settled.
1947The Lagerstättengesetz (Mineral Deposits Act), Federal Law
Gazette 246, comes into effect. Geological mapping of the Salzburg, Braunau and Ried areas begins.
1948RAG is awarded exploration contracts in Salzburg, Braunau and Ried under section 2 Mineral Deposits Act.
1949The Soviet Mineral Oil Administration identifies the largest oil field in Central Europe, Matzen-Auersthal. RAG had drilled close to the discovery well before the war.
1951RAG is awarded further exploration contracts in Bad Hall and Feldbach under section 2 Mineral Deposits Act.Modern seismic methods are used for the first time in Upper Austria; work on a cross-section of the Molasse zone is completed.Geological mapping of the Styrian concession begins.31 July: In a verbal note the Austrian government pledges to denationalise oil companies owned by members of the United Nations under a most favoured nation clause.
1953RAG reaches a broad agreement with the Austrian govern-ment regarding future exploration and production agree-ments.
195529 April: RAG and the Austrian government conclude four exploration and production agreements. 15 May: The Austrian State Treaty is signed. 10 May: Austria and the Allies sign the Vienna Memorandum. 22 September: The Puchkirchen 1 well is spudded.
195627 May: Puchkirchen 1 is brought onstream, marking the start of the first development project in Upper Austria.
1958RAG signs a supply agreement with Niogas for deliveries of gas from the Zistersdorf fields.
1959The Ried im Innkreis oil field is discovered.
1960A final settlement is reached on the issues addressed by the Vienna Memorandum. RAG and the Austrian government conclude exploration and production agreements for Pettenbach and Wels. The Kohleck Oil field is discovered.
1962RAG strikes the Schwanenstadt oil field.
1963Production at RAG’s Upper Austrian oil fields overtakes output in Lower Austria for the first time. RAG drills its first non-associated gas well, Schwanenstadt 3.Commercial natural gas production begins.RAG finds the Voitsdorf oil field, the largest in the Molasse basin, with 3.4 million tonnes of recoverable reserves in place.
1964RAG and the Austrian government sign a production agreement for the Burgau area in eastern Styria, bringing the total area of the company’s exploration properties to some 6,600 km2.
1965Exploration of the Hall formation for gas begins (Lindach 2 gas discovery).
1966RAG makes its first gas shipment in Upper Austria, from the Voitsdorf field to Kirchdorf an der Krems.
1968RAG’s annual oil production hits an all-time high of 419,118 tonnes.
46 RAG COMPANY PROFILE
2003RAG drills two geothermal wells for Munich municipal utility Stadtwerke München. RAG and Wintershall set up a joint venture to explore the 902-square-kilometre Chiemgau concession in Bavaria, with RAG acting as the operator.
2004Start of a record 805 consecutive accident-free days for RAG employees – the longest in the company’s history.The Zagling gas field is discovered.
2005RAG extends its Upper Austrian exploration area to include parts of neighbouring Lower Austria. The new RAG Upper Austria/Lower Austria permit covers 3,991 square kilometres.An agreement is signed for construction of the Haidach storage facility.Work begins at the Haidach storage facility – the largest project in RAG’s history. The facility is a joint venture with Gazprom Export and Wingas.
2006RAG commissions Europe’s largest ever seismic survey, with an area of more than 600 square kilometres.Gas sales and trading reach a record 1.2 billion cubic metres.Discovery of the Hiersdorf oil field.
200724 May: Inauguration of the Haidach storage facility.Capacity at the Puchkirchen storage facility is expanded to 850 million cubic metres.Shell disposes of its stake, which is acquired by the other owners.
2008Work starts on the final expansion phase at Puchkirchen, bringing storage capacity to 1.1 billion cubic metres and withdrawal capacity to 520,000 cubic metres an hour.The contracts are signed for construction of the 7Fields storage facility – RAG’s largest project to date.Phase one of the 7Fields construction project begins.The E200 drilling rig is developed, purchased and commiss-ioned.The Bad Hall oil field is developed and the Aigelsbrunn gas field is discovered.RAG moves into Ukraine, carrying out E&P activities on the Crimean peninsula.RAG begins E&P operations in Hungary, taking stakes in two wells.RAG and Bayerngas form a joint venture to explore the Salzach-Inn concession in Bavaria.
2009RAG acquires a Hungarian company and establishes RAG Hungary, a wholly owned subsidiary.RAG takes a 26 percent stake in a shale gas project in Poland.RAG carries out a 3D seismic survey of the Attergau West area.Work starts on the Aigelsbrunn storage facility.The E202 drilling rig is developed, purchased and commiss-ioned.RAG Austria is involved in setting up the new Austrian gas exchange.RAG completes its longest ever horizontal well, with a total length of around 3,500 metres.The Sierning oil field is discovered.
2010The final phase of the Puchkirchen storage facility is commissioned, bringing capacity to 1.1 billion cubic metres.Work starts on a district heating station and network for Strasswalchen district council.RAG carries out a 3D seismic survey of the Attergau East area.
2011 RAG commissions the Strasswalchen district heating station and network.
The Haidach II, 7Fields I and Aigelsbrunn gas storage facilities are completed. The total capacity of gas storage facilities operated by RAG reaches 5 billion cubic metres.
19 May: The Haidach II storage facility is inaugurated.
13 October: The 7Fields I storage facility is inaugurated.
October: RAG and MOL each take half shares of the Inke licence in western Hungary.
December: RAG Hungary and NIS sign an agreement to carry out joint oil and gas exploration activities in Hungary.
Wintershall withdraws from the Chiemgau concession and is replaced by Bayerngas.
2012 The first non-associated gas production in Bavaria since 1996, in cooperation with Bayerngas, begins in Assing.
February: Withdrawals from storage reach record levels due to a severe cold spell.
RAG brings a deep geothermal well in Neukirchen an der Vöckla onstream. The town’s district heating now comes from a combination of the geothermal scheme and a biomass plant.
RAG carries out a 3D seismic survey of Upper and Lower Austria.
RAG acquires interests in three exploration licences in north-eastern Germany, together with Canadian partner CEP.
RAG acquires a stake in the Parta exploration licence in Romania.
RAG’s deep geothermal well project takes third place in the Fire category of the Energy Globe Award Upper Austria.
2013 1 January: RAG sets up a wholly owned subsidiary, RAG Energy Storage GmbH, which is responsible for marketing capacity at storage facilities.
April: RAG commissions the Kremsmünster district heating station and network.
25 July: RAG celebrates the 75th anniversary of the development of the Gaiselberg oil field.
2014 January: Wholly owned subsidiary RAG Energy Drilling GmbH is formed.
1 April: Commissioning of phase two of the 7Fields facility. Total capacity of gas storage facilities operated by RAG reaches 5.8 billion cubic metres.
September: RAG’s first public natural gas filling station opens between Puchkirchen and Gampern.
4 December: RAG acquires a stake in Wintershall Holding’s Tannheim exploration licence.
2015January: Concessions in Austria expand to 6,142 square kilometres.
January: The Technology Sales & Services department is set up.
September: Commissioning of a pilot facility for ultra low temperature compression in Puchkirchen-Gampern.
5 October: The test facility for the Underground Sun Storage project opens in Pilsbach, Upper Austria.
2016Hanover-based RDG is established, with RAG holding a 50% stake.
Total capacity of gas storage facilities operated by RAG reaches around 6 billion cubic metres.
June: Second natural gas filling station opens, in Krift (Kremsmünster).
September: RAG 3D seismic surveys in Bavaria
Legal informationPublished by RAG Rohöl-Aufsuchungs Aktiengesellschaft,
Schwarzenbergplatz 16, 1015 Vienna
Copy and consulting: Ruth Schneggenburger
Graphic design: Marianne Prutsch Werbeagentur
Pictures: RAG archives, steve.haider.com, Karin Lohberger Photography
Status: September 2016
Ownership structure and principal investments
Principal investments, including associates
RAG Energy Storage GmbH 100%
RAG Energy Drilling GmbH 100%
RAG Hungary Kft. 100%
RDG GmbH & Co. KG 50%
RAG Kiha Kft. 50%
Joint Ventures
Haidach storage facility 33.33%
7Fields storage facility 50%
Aubach concession RDG 100%
Salzach-Inn concession RDG 100%
Lübben concession RDG 25%
Tannheim concession RDG 50%
Parta exploration permit 50%
Executive BoardMarkus Mitteregger, MBA (Chief Executive Officer)
Michael Längle (Chief Financial Officer)
Kurt Sonnleitner (Chief Technical Officer)
Supervisory BoardPeter Layr, Chairman
Peter Klingenberger, Deputy Chairman
Leonhard Schitter
Stefan Szyszkowitz
Franz Winter (Works Council delegate)
Helmut Wirth (Works Council delegate)
50,025% EVN AG
29,975% Uniper Exploration & Production GmbH
10,000% Energie Steiermark Kunden GmbH
10,000% Salzburg AG
RAG-Beteiligungs- Aktiengesellschaft
RAG Rohöl-Aufsuchungs AktiengesellschaftSchwarzenbergplatz 16 · 1015 Vienna · Austria
www.rag-austria.at · office@rag-austria.at
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