OMV sells its stake in the Norwegian oil field Wisting to Lundin Energy AB
OMV, the international integrated oil, gas and chemicals company headquartered in Vienna, Austria, has agreed to sell its 25% stake in the Wisting oil field to Lundin Energy AB, an experienced Nordic oil and gas company.
The purchase price is USD 320 mn, payable upon completion. In addition, there is a contingent payment of up to USD 20 mn depending on final project CAPEX. The contingent payment will be triggered if a reduced CAPEX number relative to the current view is manifested in the Plan for Development and Operation. The economic effective date of the transaction will be January 1, 2021. The closing of the transaction is subject to approvals.
“The divestment of the Wisting oil field underlines OMV’s Exploration & Production strategy: We intend to increase the share of natural gas over oil to reduce the carbon intensity of the product portfolio in the future”, said Johann Pleininger, OMV Board Member Exploration & Production and Deputy Chairman of the Executive Board.
The Wisting oil field is in the Hoop area of the Barents Sea in PL 537 and 537B, approximately 310 kilometers from the mainland of Norway. Equinor Energy AS is operator for the project development phase. Six wells are drilled to date. The sixth and latest appraisal well (Wisting Central III) was drilled in 2017. Planned start of the Wisting production is 2028.
OMV is focusing increasingly on low-carbon projects, shifting away from the substantial capital expenditures required for developing this project over the next years.
OMV produces and markets oil and gas, as well as chemical products and solutions in a responsible way and develops innovative solutions for a circular economy. With Group sales revenues of EUR 17 bn and a workforce of around 25,000 employees in 2020 (incl. Borealis), OMV is one of Austria’s largest listed industrial companies. In Exploration & Production, OMV has a strong base in Central and Eastern Europe as well as a balanced international portfolio, with Middle East & Africa, the North Sea, Russia and Asia-Pacific as core regions. Daily average production was 463,000 boe/d in 2020 with an emphasis on natural gas. In Refining & Marketing, OMV operates three refineries in Europe and owns a 15% share in ADNOC Refining and ADNOC Global Trading, with a total processing capacity of more than 500,000 bbl/d. Furthermore, OMV operates about 2,100 filling stations in ten European countries and runs gas storage facilities in Austria and Germany. In 2020, total natural gas sales volumes amounted to around 164 TWh. In Chemicals & Materials, OMV, together with its subsidiary Borealis, is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics. The company supplies services and products to customers around the globe through Borealis and its two important joint ventures: Borouge (with the Abu Dhabi National Oil Company, or ADNOC, based in UAE) and Baystar™ (with Total, based in the US). Sustainability is an integral part of OMV’s corporate strategy. OMV supports the transition to a lower-carbon economy and has set measurable targets for reducing carbon intensity as well as for the implementation of new energy and petrochemical solutions.
OMV (Norge) AS
OMV (Norge) AS was established in 2006 and is headquartered in Stavanger. OMV holds production licenses in the Aasta Hansteen, Gullfaks and Gudrun fields, operated by Equinor, and in the Edvard Grieg field, which is operated by Lundin Energy Norway. In 2020, the daily net production from these assets was approximately 85,000 boe. OMV (Norge) AS is the current operator of the Iris Hades discovery in the Norwegian Sea. OMV (Norge) AS has interests in 39 production licenses on the Norwegian continental shelf, with 11 licenses operated. OMV (Norge) AS is a wholly owned subsidiary of OMV Exploration & Production GmbH which itself is a wholly owned subsidiary of OMV Aktiengesellschaft.