Wintershall: Oil Could Rise in the Medium Term

Germany's Wintershall expects oil prices to recover faster than gas prices as oil may become short in supply if spending continues to drop, its chief executive Mario Mehren told reporters on Wednesday.

"Supply tightness (in oil) will already come in 2017-2019 if the current reduction in international investments continues," he told reporters in Berlin.

Big oil producers are facing their longest period of investment cuts in a decade as prices of U.S. crude and Brent crude from the North Sea have slumped to multi-year lows, due to oversupply and worries over demand.

Wintershall, the oil and gas arm of chemicals group BASF , invests in oil and gas production mainly in countries like Russia and Argentina, which offer lower cost structures than projects like the extraction of oil from tar sands or exploration in Arctic regions, Mehren said.

Wintershall last year completed an asset swap with its Russian partner Gazprom that includes additional access to Siberian gas fields.

Mehren said also his company is interest in opportunities in Iran where international sanctions have been lifted, and was expecting details on possible contract terms as early as next month when Tehran will hold a conference in London designed to attract foreign investment.

Reporting by Vera Eckert