- OMV enters an exploration project offshore Namibia
- Farm-in agreed in partnership with subsidiary of US company Murphy Oil
- Transaction strengthens OMV’s position in Sub-Saharan Africa
OMV is taking the next step to expand its exploration business in Sub-Saharan Africa by entering an offshore exploration project in Namibia. This is the third major milestone to build up a significant exploration position in the region after acquiring interests in Madagascar and Gabon in 2013.
OMV CEO Gerhard Roiss: "OMV is well on track to position its assets into more high-return upstream projects. Therefore it is part of OMV´s strategy to build up new exploration opportunities also in the region of Sub-Saharan Africa. By achieving this third milestone in just over six months, OMV has once again demonstrated its ability to deliver on strategic objectives."
The transaction involves the acquisition of a 65% interest in two exploration blocks by Murphy Luderitz Oil Co., Ltd. (Murphy) and OMV from the Brazilian company Cowan Petroleum. OMV will take 25% while Murphy will be the operator of the joint venture, with an interest of 40%. Cowan will retain 20% equity, with the remaining 15% held by the Namibian national oil company NAMCOR. The joint venture partners will conduct an extensive 3D seismic program starting in Q2 2014.
Jaap Huijskes, OMV Executive Board member responsible for Exploration and Production: "Offshore Namibia offers great exploration potential as it is largely unexplored, yet has all the elements of an effective hydrocarbon system. The transaction is fully in line with our growth strategy and our focus on the North Sea region, Black Sea and opportunities like these in Sub-Saharan Africa."
Details on the transaction:
The permit PEL 046 covers two blocks: 2613A and 2613B offshore Namibia
Size of the permit: 11,000 km2
(Please also refer to the map below)
With Group sales of EUR 42.42 bn and a workforce of around 27,000 employees in 2013, OMV Aktiengesellschaft is Austria’s largest listed industrial company. The Exploration and Production business segment has a strong base in Romania and Austria and a growing international portfolio. 2013 daily production stood at approx. 288,000 boe/d. In Gas and Power, OMV sold approximately 425 TWh of gas in 2013. OMV operates a gas pipeline network in Austria and gas storage facilities in Austria and Germany with a capacity of 2.6 bcm. In Refining and Marketing OMV has an annual refining capacity of 17.4 mn tonnes and as of the end of 2013 approximately 4,200 filling stations in 11 countries including Turkey.