OMV, the integrated, international oil and gas company, has closed the $2.65 billion acquisition of assets in Norway and the UK (West of Shetland area) from Statoil. Approval has been granted by the relevant authorities.
OMV acquired 19% in the producing Gullfaks field and 24% in the Gudrun field; both offshore oil and gas fields on the Norwegian Continental Shelf.
In addition, OMV took over 30% in Rosebank and 5.88% in Schiehallion, both located west of the Shetland Islands and assets where OMV already holds a stake in.
The transaction with Statoil involves an R&D partnership between the two companies and the option of farm-in agreements for further exploration licenses.
OMV CEO Gerhard Roiss: “The transaction is a key part of OMV’s strategy of focusing on exploration and production in politically stable markets and will be a substantial factor in achieving our 2016 targets. We are thereby bolstering our position in the heart of our North Sea growth region.”
OMV will substantially increase its reserve base. Proven and probable reserves will climb by about 320 mn boe. Production contribution will be approximately 25,000 boe/d as of November 1, 2013 and is expected to rise to about 40,000 boe/d during 2014 with a planned increase to approximately 58,000 boe/d during 2016.
The effective date of the transaction is January 1, 2013. No adjustments for OMV were due at closing for the year 2013. The transaction was largely funded out of the proceeds generated by working capital reductions and disposals from the downstream business segments as well as the company’s strong cash flow – in the first half 2013 OMV had a free cash flow of around EUR 1.6 bn. Existing credit lines were also utilized.
Press Release, October 31, 2013