Offshore staff
VIENNA, Austria– OMV and Gazprom have reached a binding basic agreement for a potential asset swap transaction that would see the Russian national acquire a minority stake in OMV’s Norwegian subsidiary.
In exchange for a 38.6% participation in OMV (Norge) AS,OMV would acquire a 24.98% interest in the Achimov IV and V phase development in the Urengoy gas and condensate field in Western Siberia. The swap transaction would add about 560 MMboe to the Austrian company’s reserves, representing its share of production until the end of contracts in 2039.
Production is expected to start up in 2019 and to reach a plateau of more than 80,000 boe/d in 2025 (OMV’s share of production). OMV’s share of total investments is expected to amount to approximately EUR 0.9 billion from 2017 to 2039.
While the execution of the basic agreement was approved in today’s OMV supervisory board meeting, it is still subject to signing of the basic agreement by the parties. The signing is expected to take place today, Dec. 14.
OMV (Norge) AS’ Norwegian portfolio consists of a total of 32 licenses, operating five, in the Norwegian North Sea, the Norwegian Sea, and theBarents Sea. Production in the first nine months of 2016 amounted to 67,000 boe/d. OMV will continue to fully consolidate the OMV (Norge) AS subsidiary and its reserves.
The deal is expected to be cash free except for potential customary closing adjustment payments. The effective date is Jan. 1, 2017. The execution and performance of the swap transaction is subject to the agreement on the final transaction documents, regulatory, and further corporate approvals. The signing of the final transaction documents is expected by mid-2017.
OMV recently sold itsUK E&P subsidiary in a deal valued at up to $1 billion.
12/14/2016
