Austrian energy group OMV is to buy Norwegian and UK North Sea assets from Norway’s Statoil in a US$2.65billion deal.
The deal will see OMV acquire 19% interest in the producing Gullfaks field and 24% in the Gudrun field, both oil and gas fields offshore the Norwegian Continental Shelf.
In addition, OMV will acquire 30% interest in the Rosebank development project, operated by Chevron, and 5.877% interest in Schiehallion, operated by BP. Both of these fields are west of Shetland, where OMV already has interests.
The agreement with Statoil includes options to take interests in 11 exploration licenses.
OMV and Statoil will also form a research and development partnership to develop new technologies for the exploration of gas and oil from mature fields.
This will include enhanced oil recovery, which OMV has developed in its onshore operations.
OMV said the deal will increase its 2P reserves (proven and probable) by about 320MM boe, adding to the existing 1.7billion boe.
Production will rise by 40,000 boe/d by 2014 with a target increase to about 58,000 boe/d by 2016, says OMV. In the first half of 2013 OMV achieved a daily production of 299,000 boe/d.
Additional detail:
The Gullfaks field (OMV share*: 19%) is located in the Norwegian North Sea and is one of the country’s largest fields. The field had already produced 2.7billion boe by the end of 2012 and continues to offer significant potential. A production of about 26,000 boe/d is expected for 2014.
Gudrun (OMV share*: 24%) is a new development in Norway. Gudrun is expected to start production in early 2014 and to contribute 15,000 boe/d in 2014 and up to 19,000 boe/d in 2016. The field is located approximately 15km west of Edvard Grieg. OMV acquired a 20% share in Edvard Grieg in October 2012.
Rosebank (OMV previous share 20%, now 50%*) is currently the largest development in the UK and is located west of the Shetland Islands. The final investment decision (FID) for Rosebank, using an FPSO, is expected in 2014 and production is forecast to begin in 2018. The development is operated by Chevron and estimates put peak production at 50,000 boe/d.
The Schiehallion field (OMV previous share 5,88%, now 11,76%*), also located west of Shetland, is the UK’s second largest oil field and is currently undergoing major redevelopment, with a new FPSO. Production is set to resume in 2016 and peak production is estimated at about 12,000 boe/d.
OMV will have the option of participating in up to 11 exploration licenses in the Faroe Islands, West of Shetland area and the Norwegian North Sea. The majority of these licenses are underexplored frontier licenses with significant resource potential. Exploration licenses in Norway are located in the vicinity of the Edvard Grieg field.
*Closing of the transaction is expected around year-end 2013.
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