Russian gas company Gazprom and Austrian oil and gas company OMV have agreed to swap assets.
Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the OMV Executive Board, on Wednesday signed the basic agreement regarding the asset swap.
The signing ceremony took place in the presence of Hans Jörg Schelling, Minister of Finance of the Republic of Austria and Anatoly Yanovsky, Deputy Minister of Energy of Russia.
According to the agreement, Gazprom will receive a 38.5 percent stake in OMV (NORGE) AS, a company focused on geological exploration and production in Norway. In exchange, OMV will obtain a 24.98 percent stake in the project for developing Blocks 4 and 5 of the Achimov formation in the Urengoy oil, gas and condensate field. The deal is subject to an agreement on the final transaction documents, regulatory approvals, and further corporate approvals.
“The Basic Agreement specifies the share that Gazprom will receive in the asset of OMV as part of the asset swap; it also contains some other commercial terms and is legally binding. In essence, the basic parameters of this deal have been determined. We plan to agree and sign the final documents by mid of 2017,” said Alexey Miller.
“The signing of the Basic Agreement is a further milestone to foster the long lasting partnership between OMV and Gazprom. With this, OMV laid the foundation to reach one of its most important strategic targets. The project will substantially increase our reserve base. We will identify further projects and opportunities with Gazprom to expand our cooperation,” said Rainer Seele.