Vienna-based oil and gas company OMV reported on March 5, 2017, that the company has entered into an agreement with Uniper to acquire 24.99% stake in Yuzhno Russkoye gas field in Western Siberia for $1.85 bln.
Located in Yamal-Nenets region, the Yuzhno Russkoye field is one of the largest gas fields in Russia, with a current plateau production of 25 billion cubic meters per year.
The acquisition is expected to be completed by the end of this year.
OMV chief executive officer Rainer Seele said: The acquisition will build a new core area, Russia, in our upstream portfolio adding 100,000 boe/d to OMV’s production. After closing, OMV will produce in total more than 400,000 boe/d. This transaction is fully compliant with the execution of our strategy and significantly reduces OMV’s production cost.
The transaction is subject to further conditions, including co-shareholder consent as well as merger control and foreign investment control clearance in Russia.
According to OMV, the capital expenditure needs of the field are expected to amount to $20m annually until license expiry.
The license for the field will expire by the end of 2043.
OMV upstream board member Johann Pleininger said: An important strategic rationale behind this transaction is the ability to replenish reserves. With remaining recoverable reserves of around 580 mn boe (OMV share), Yuzhno Russkoye becomes a major source of reserve replenishment in OMV’s portfolio.
Separately, OMV has signed an agreement to sell its wholly owned subsidiary OMV Petrol Ofisi to VIP Turkey Enerji for €1.36 mln.
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