OMV signs upstream exploration agreement with the Abu Dhabi National Oil Company
June 24, 2013 - 10:30 am (CET)
- OMV and ADNOC will jointly explore the onshore region in East Abu Dhabi
- Both partners will acquire seismic data and drill exploration wells to evaluate the potential of the area
- OMV CEO Roiss: "With this step OMV is on the way to foster its upstream position in the Middle East"
The Abu Dhabi National Oil Company (ADNOC) and OMV East Abu Dhabi Exploration GmbH (OMV) signed an exploration agreement on June 23, to pursue exploration for oil and gas in the Eastern region of Abu Dhabi. OMV and ADNOC will conduct a state of the art exploration program consisting of seismic acquisition and the drilling of exploration wells. If the exploration campaign is successful, ADNOC and OMV intend to jointly develop the potential discoveries in accordance with Abu Dhabi laws. The exploration activity agreement has a duration of four years.
This exploration undertaking is a strategic supplement to OMV´s participation in the Shuwaihat field appraisal project which was signed in 2012. Together, the projects should provide a shorter and longer term contribution to Abu Dhabi’s plan to increase production and reserves.
OMV CEO Gerhard Roiss said: "With this step OMV is on the way to foster its upstream position in the Middle East. Above this we are broadening the cooperation with Abu Dhabi beyond the field of petrochemicals."
A successful exploration campaign might lead to hydrocarbon discoveries and potentially to the development of oil, gas and condensate fields in the Eastern region of Abu Dhabi. This would help to cover the increasing energy demand of the United Arab Emirates and the country’s long-term export capability.
OMV East Abu Dhabi Exploration GmbH
OMV has opened an E&P office in Abu Dhabi in 2007. This office serves for screening business opportunities and the coordination of existing activities in the Middle East region. The close co-operation with International Petroleum Investment Company (IPIC), OMV's second largest shareholder, will support OMV's endeavors in the region. IPIC has been OMV's shareholder since 1994 and holds 24.9 % of OMV. The office will be the basis to further strengthen the relationship with the United Arab Emirates and to investigate and evaluate appropriate investment opportunities.
The Abu Dhabi office will focus on reviewing opportunities for strengthening OMV's E&P activities in the OMV E&P core region Middle East. In addition it could serve as a hub for procurement, drilling and operational support.
With Group sales of EUR 42.65 bn and a workforce of around 29,000 employees in 2012, OMV Aktiengesellschaft is Austria’s largest listed industrial company. 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 1.12 bn boe as of year-end 2012 and a production of around 303,000 boe/d in 2012. In Gas and Power, OMV sold approximately 437 TWh of gas in 2012. In Austria, OMV operates a 2,000 km long gas pipeline network with a marketed capacity of around 103 bcm in 2012. With a trading volume of around 528 TWh, 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 the end of 2012 approximately 4,400 filling stations in 13 countries including Turkey. OMV further strengthened its position through the ownership of a 97% stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.