OMV and Gazprom sign „Amendment Agreement“ to the „Basic Sale Agreement“ in relation to the potential acquisition of a 24.98% interest in Achimov 4A/5A phase development by OMV
Public disclosure of inside information according to Art 17 MAR
Today, OMV and Gazprom have signed an „Amendment Agreement“ to the „Basic Sale Agreement“ dated October 3, 2018. The „Amendment Agreement“ foresees, in particular, a purchase price of EUR 905 mn for the potential acquisition of a 24.98% interest in the Achimov 4A/5A phase development in the Urengoy gas and condensate field by OMV.
The amended „Basic Sale Agreement“ also contains the key principles of, and the way forward with respect to, the transaction. The execution and implementation of the transaction itself is, amongst others, subject to the approval of the Supervisory Board of OMV and an agreement with Gazprom on the final transaction documents as well as regulatory approvals at a later stage. The signing of the final transaction documents is expected to take place until the end of the year 2019.
The acquisition would grant OMV access to the Achimov 4A/5A reservoir in the Urengoy field located in Western Siberia, Russia. The Urengoy field is Russia’s largest gas and condensate field and one of the biggest gas fields in the world. It is located in Western Siberia and extends over 12,000 km2. The acquisition would add approximately 600 mn barrels of oil equivalent (“boe”) to OMV’s reserves representing OMV’s share of production in Achimov 4A/5A until the end of the year 2044. The operator expects production to start up at the end of 2020 and to reach a plateau of more than 80,000 boe/day (OMV’s share of production) in 2026. OMV’s share of total investments is expected to amount to approximately EUR 950 mn until the end of the year 2044, including approximately EUR 75 mn compensation for past cost incurred in the years 2017 and 2018.
Background information:
OMV Aktiengesellschaft
OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of more than 20,000 employees in 2018, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Upstream, OMV has a strong base in Romania and Austria as part of the Central and Eastern Europe core region as well as a balanced international portfolio, with Russia, North Sea, Middle East and Africa as well as Asia-Pacific as further core regions. 2018 daily production stood at approximately 427,000 boe/d. In Downstream, OMV operates three refineries with a total annual processing capacity of 17.8 mn tons and more than 2,000 filling stations in ten countries. OMV runs gas storage facilities in Austria and Germany; its subsidiary Gas Connect Austria GmbH operates a gas pipeline network in Austria. In 2018, gas sales volumes amounted to around 114 TWh. Sustainability is an integral part of the corporate strategy. OMV is set to invest EUR 500 mn in innovative energy solutions by 2025.