OMV sells UK subsidiary for $1 billion

Austrian oil and gas company OMV has reached an agreement for the sale of 100% of the shares in its wholly owned subsidiary OMV (U.K.) Limited to Siccar Point Energy Limited, a North Sea-focused exploration, development, and production company.

OMV entered the United Kingdom in 1987 and holds a portfolio of licenses mostly focused on the West of Shetlands area, but also in the Central North Sea. The company has been active as an operator in the UK since 2004.

The company said in a statement on Tuesday that the transaction was approved at a meeting of the Supervisory Board of OMV on Tuesday but is, however, still subject to the signing of the relevant transaction documentation by the parties. The signing was expected to take place during the course of Tuesday.

According to the Austrian oil company, the overall transaction value is envisaged to amount to up to $1 billion. It consists of a firm payment of $750 million and a contingent payment related to the Rosebank Final Investment Decision (FID) in the amount of up to $125 million. OMV has 20% interest in the Chevron-operated Rosebank field development located in the North Sea.

On top, the parties agreed on a purchase price adjustment with respect to CAPEX as of the effective date of the transaction on January 1, 2016. This results in a further consideration in the amount of approximately $125 million, the company added.

OMV further said the company expects a negative effect on OMV’s Group EBIT according to IFRS of approximately EUR 350 million at current exchange rates. This includes a loss on sale of approximately EUR 458 million, envisaged to be offset by foreign exchange gains of approximately EUR 100 million related to foreign operations that are expected to be realized at closing.

The transaction is subject to conditions, including regulatory approvals and is anticipated to close in 1Q 2017.

Share this article

Follow Offshore Energy Today

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Oil & Gas Vietnam 2019

Oil & Gas Vietnam (OGAV) 2019 is the only specialized oil & gas event in Vietnam that brings together an international congregation…

read more >

Offshore Energy Exhibition and Conference (OEEC) 2020

Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply