July 12, 2011 - 15:00 pm (CET)
- Purchase of the entire share capital of Petronas Carigali (Pakistan) Ltd, which is Petronas’ Exploration and Production (E&P) operating entity in Pakistan: The transaction was successfully completed as of July 11, 2011
- Strong growth potential of the acquired portfolio will contribute towards the anticipated production increase in Pakistan to about 25,000 boe/d by 2014
OMV, the leading energy Group in Central and Southeastern Europe, successfully completed the acquisition of the entire share capital of Petronas’ E&P operating entity in Pakistan from PETRONAS International Corporation Limited (Petronas) as of July 11, 2011. The government of Pakistan has provided its non-objection to the share transfer and change of control transaction pursuant to applicable laws in Pakistan.
Jaap Huijskes, member of the OMV Executive Board responsible for Exploration and Production, stated: "The acquired production, development and exploration licenses will strengthen OMV’s position in the top league of foreign gas producers in Pakistan. OMV is well on the way to achieve the goal of increasing equity production in Pakistan to around 25,000 boe/d by 2014."
The acquired portfolio considerably strengthens OMV’s position in Pakistan. With the completion of the share and change of control transaction, OMV increases its production by about 1,000 boe/d to 15,000 boe/d. The acquisition includes the Mubarak and Mehar exploration licenses as well as the Mehar and Mubarak development and production leases in the Indus Basin in central Pakistan. Through this acquisition, Pakistan gains a strong strategic position within the E&P portfolio and will help OMV reach its long-term growth objectives.
OMV started operating in Pakistan in 1991. The current gross production operated and processed by OMV (PAKISTAN) amounts to 530 mn scf/d (90,000 boe/d), which represents around 13% of Pakistan’s gas supplies. The country offers growth potential supported with prospective as well as underexplored acreage. The good business environment and strong local energy demand support the growth aspirations.
Balanced international E&P portfolio
In Q1/2011, OMV’s oil and gas production was 304,000 boe/d. Its proven reserves were about 1.15 bn boe at year-end 2010. In its core countries Romania and Austria, OMV is focusing on reducing the natural decline and on enhancing the recovery rates from mature fields. Future growth is expected to come via new field developments, exploration and acquisitions internationally. OMV intends to grow the existing portfolio to and beyond critical mass, on a production per country basis, and is looking to find new growth areas within the Caspian, Middle East and North Africa regions where OMV can leverage on its existing E&P exposure.
OMV in Pakistan
OMV (PAKISTAN) Exploration GmbH is a 100%-owned subsidiary of OMV Aktiengesellschaft and has been operating in Pakistan since 1991. OMV current main activities concentrate on the central Indus region, where it has built up a strong position as an operator but is also expanding in other regions of the country where interesting exploration projects are underway. In addition to the newly acquired licenses, OMV currently holds three exploration licenses and two development and production licenses in the central Indus Basin and four exploration licenses in the foldbelt area of Baluchistan. OMV’s current daily equity production in Pakistan is around 15,000 boe; the gross production operated and processed by OMV (PAKISTAN) amounts to 530 mn scf/d (90,000 boe/d), which represents around 13% of Pakistan’s gas supplies.
With Group sales of EUR 23.32 bn and a workforce of 31,398 employees in 2010, 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 1.15 bn boe as of year-end 2010 and a production of around 304,000 boe/d in Q1/2011. In Gas and Power, OMV sold approximately 18 bcm of gas in 2010. In Refining and Marketing, OMV has an annual refining capacity of 22.3 mn t and as of year-end 2010 approximately 4,800 filling stations in 13 countries including Turkey. In Austria, OMV operates a 2,000 km long gas pipeline network with a marketed capacity of around 89 bcm in 2010. With a trading volume of around 34 bcm in 2010, OMV’s gas trading platform, the Central European Gas Hub, is amongst the most important hubs in Continental Europe. OMV further strengthened its position through the ownership of a 96% stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.
Under its 3plus strategy, OMV combines the strengths of its E&P, G&P and R&M business units in order to ensure that it provides the best possible supply service to its three core markets of Central and Eastern Europe, Southeast Europe and Turkey. OMV uses the synergies that result from the combination of these strengths to extend its supply chain from oil and gas through to electricity and eventually renewable energy.
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.