OMV signs major oil acquisition in Norway
- OMV acquires a 20% stake in the Edvard Grieg oil field development from RWE Dea
- A further important move to establish Norway as core country in OMV’s Exploration and Production portfolio
OMV acquires a 20% stake in the Edvard Grieg field (formerly Luno, Production Licence 338). The agreement with the seller RWE Dea was signed on October 16. OMV will gain access to 2P reserves in excess of 38 mn boe of oil and associated gas and to production net to OMV of up to 19,000 boe/d in 2016.
Discovered in 2007, the Edvard Grieg field opened a new geological play type in the Utsira High in an underexplored region in the Norwegian North Sea. It is located approximately 180 km west of Stavanger in a water depth of around 110 m. Several discoveries have since been made adjacent to the license PL 338, among them the Johan Sverdrup field, probably the fourth largest discovery made in Norway. The Edvard Grieg field is operated by Lundin Petroleum which holds a 50% stake in the field; 30% are held by Wintershall. The Plan for Development and Operations (PDO) was approved by the Norwegian Parliament in June 2012. All major contracts for drilling, platform and topside construction covering the majority of investments have already been awarded.
According to the PDO, the acquisition will provide OMV with 2P reserves in excess of 38 mn boe and production of up to 19,000 boe/d in 2016. Additional exploration potential upside is identified within the block boundaries.
The purchase price amounts to EUR 247.9 mn as per effective date January 1, 2012 plus a contingent payment based on the achievement of certain operational milestones.
The deal is subject to approval by the Norwegian Ministry of Petroleum and Energy and by the Norwegian Ministry of Finance.
Jaap Huijskes, OMV Executive Board Member responsible for Exploration and Production: “I´m glad to see that Norway is becoming a core country in our Exploration and Production portfolio. This is the third acquisition in Norway within a year.”
OMV has been active in Norway since 2007 and has built up a portfolio of 17 licenses in the Continental Shelf and the Barents Sea of which 8 are operated. By year end 2011, 20% of the Zidane field development project in PL 435 was acquired followed by the acquisition of a 15% stake in the Aasta Hansteen development project in PL 218/218 B in 2012.
With Group sales of EUR 34.05 bn and a workforce of 29,800 employees in 2011, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Exploration and Production, OMV is active in two core countries, Romania and Austria, and holds a balanced international portfolio. OMV had proven oil and gas reserves of approximately 1.13 bn boe as of year-end 2011 and a production of around 288,000 boe/d in 2011. In Gas and Power, OMV sold approximately 272 TWh of gas in 2011. In Austria, OMV operates a 2,000 km long gas pipeline network with a marketed capacity of around 101 bcm in 2011. With a trading volume of around 39 bcm in 2011, OMV’s gas trading platform, the Central European Gas Hub, is amongst the most important hubs in Continental Europe. In Refining and Marketing, OMV has an annual refining capacity of 22 mn t and, as of year-end 2011, approximately 4,500 filling stations in 13 countries including Turkey. OMV holds a 51% stake in the Romanian energy company OMV Petrom S.A., a 36% stake in Borealis AG, one of the world’s leading producers of polyolefins, in total 59% of EconGas GmbH and 45% of the refining network Bayernoil. OMV further strengthened its position through the ownership of a 97% stake in Petrol Ofisi, Turkey’s leading company in the oil products retail and commercial business.
OMV is a signatory to the UN Global Compact, and an active supporter to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment, especially in economically weak regions. OMV continuously addresses economic, environmental and social issues related to its business in a responsible manner. The company reports on its activities in a sustainability report in accordance with the Global Reporting Initiative Guidelines.