OMV to acquire PETRONAS’ operations in Pakistan
September 21, 2010 - 11:30 am (CET)
- Sale and Purchase Agreement signed to acquire PETRONAS’ oil and gas exploration and production interests in Pakistan by a corporate acquisition
- Acquisition will further strengthen OMV’s position as the biggest foreign gas producer in the country with an expected increase in production in Pakistan to approximately 25,000 boe/d by 2014
- Transaction in line with the Company’s 3plus strategy
OMV, the leading energy Group in the European growth belt, has signed a Sale and Purchase Agreement with PETRONAS International Corporation Limited (PETRONAS) on September 20, 2010 to acquire PETRONAS’ oil and gas exploration and production interests in Pakistan. These include the Mubarak, Mehar and Daphro exploration licenses and the Mehar and Mubarak development and production leases. PETRONAS International Corporation Limited is a subsidiary of Malaysia’s national oil company PETRONAS. This proposed ownership change will be subject to the fulfilment of certain conditions precedent, in particular approval by the Government of Pakistan. The closing of the deal is expected to take place within the next few months. PETRONAS and OMV have decided not to disclose any further details of this acquisition.
Jaap Huijskes, OMV Executive Board member, responsible for Exploration and Production: “This corporate acquisition will expand OMV’s existing asset base and is a step towards reaching a critical mass in production in Pakistan. The acquired portfolio has strong growth potential and will put OMV in a position to significantly support the company’s long-term strategy goals.”
For OMV, this transaction is in line with its corporate 3plus strategy to further grow within its exploration and production core regions such as the Middle East. OMV will further invest in Pakistan to ensure its position as the biggest foreign gas producer in the country.
Balanced international E&P portfolio
OMV holds a balanced international E&P portfolio in 16 countries structured around six core regions, namely CEE, North Africa, Northwestern Europe, the Middle East, Australia/New Zealand and Caspian Region. OMV's daily production is approximately 318,000 boe/d and the Company’s proven reserves at the end of 2009 were approximately 1.19 bn boe.
Notes to editors:
OMV in Pakistan
OMV (PAKISTAN) Exploration GmbH is a 100% subsidiary of OMV Aktiengesellschaft and has been active in Pakistan since 1991. The activities of OMV are currently concentrated in the Middle Indus Region, where OMV has established itself in a strong position as an operator, but is also expanding in other areas of the country.
Currently, OMV has interests in a total of nine blocks: seven are exploration licenses and two are development and production licenses in the Middle Indus Basin. OMV’s current production in Pakistan amounts to approximately 14,000 boe/d.
OMV Aktiengesellschaft
With Group sales of EUR 17.92 bn and a workforce of 34,676 employees in 2009, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. As the leading energy Group in the European growth belt, OMV is active in Refining & Marketing (R&M) in 12 countries. In Exploration & Production (E&P) OMV is active in 16 countries on four continents. In Gas & Power (G&P) OMV sells approximately 13 bcm gas per year. Through its 2,000 km long gas pipeline network in Austria G&P transports approximately 75 bcm gas annually. OMV’s Central European Gas Hub is with around 23 bcm annual trading volume one of the most important gas hubs in Continental Europe.
OMV is the leading energy Group in the European growth belt with oil and gas reserves of approximately 1.19 bn boe, daily production of around 318,000 boe in Q2/10 and an annual refining capacity of approximately 26 mn t. OMV now has 2,319 filling stations as of Q2/10. The market share of the group in the R&M business segment in the Danube Region is now 20%.
OMV further strengthened its leading position in the European growth belt through the acquisition of 41.58% of Petrol Ofisi, Turkey’s leading company in the retail and commercial business.
In June 2006, OMV has established the OMV Future Energy Fund, a wholly owned subsidiary to support projects in renewable energy with more than EUR 100 mn to initiate the change from a pure oil and gas group to an energy group with renewable energy in its portfolio.
Sustainability
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. This report is published at the same time as the annual report.