rag company profile · 6 rag company profile secure, sustainable and affordable energy 7 forecast...

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.


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.”


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.“


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.“


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.”


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.“


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


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.


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.


Reservoir depth 1,300 to 2,300 m




Total storage capacity of facilities of operated by RAG (TWh, GW and MW thermal)


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).


Reservoir area 6 x 2 km / 5 x 2 km

Reservoir depth 1,100 m / 1,000 m




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).




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).




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.”


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


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.


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.”


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.


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


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.“


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.


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 · [email protected]

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