Austrian integrated energy firm OMV has boosted its UK west of Shetland holdings after agreeing to buy four licenses in the area from Hess, including the Cambo field and the Blackrock prospect, for US$50 million.
Depending on future developments, a contingent payment of up to $35 million is possible.
Acquired interests, containing an estimated 60MM boe recoverable, are:
OMV operates the Tornado discovery, close to Cambo, and the Suilven discovery. the company says there are also further prospects with tie-back potential, which could mean Cambo becomes an area hub.
The Blackrock prospect is located between the Rosebank and Cambo discoveries and is expected to be drilled in 2015.
Jaap Huijskes, OMV Executive Board member responsible for Exploration and Production (pict: “This acquisition further consolidates OMV as a major player in West of Shetland and we look forward to working with partners and the UK authorities to unlock the substantial potential in the area.”
OMV holds interests in 22 licenses west of Shetland, including Rosebank, Schiehallion, Tornado, and Suilven, and an additional four licenses in the adjacent Faroe Islands.
Late last year, Chevron said it was delaying the Rosebank development, shortly after OMV increased its ownership in the field to 50% (with Chevron holding 30%). At the time, OMV said it saw shortcomings on the project. Huijskes said: “We think there is cost in there that could be driven out.” Read more: http://www.oedigital.com/component/k2/item/4456-chevron-s-rosebank-gets-re-think
The deal with Hess is subject to the approval of the UK Government and joint venture partners.
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