Gazprom, OMV reach agreement over Norwegian assets

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The Austrian company confirms that a binding basic agreement with Gazprom has been approved by the company’s Supervisory Board. The deal includes an asset swop which will give the Russian company a 38,5 percent stake in the OMV’s subsidiary in Norway. In return, the Austrians get 24,98 percent of the West Siberian Urengoy gas and condensate field.

The signing of the deal is due to take place in the course of Wednesday, and the effective date of the transaction is 1 January, the company informs in a press release.

The deal comes after months of negotiations with Norwegian authorities, who long refused to let the Russian company take over more than 25 percent of OMV Norway.

Over the last few years, Russian companies have made headway in Norwegian waters. In 2014, Mikhail Fridman and his company LetterOne acquired control over oil company DEA Norway. The year after he followed up with the takeover of E-On Norway. In addition, both Lukoil and Rosneft are engaged in the Barents Sea.

OMV Norway holds a project portfolio of a total of 32 licenses, of which five are operated by the company itself.

Among the company’s most prospective Norwegian assets is the Wisting field in the Barents Sea, a structure which is believed to hold more than 500 million barrels of oil. Additional resources was discovered in the field this spring and the company now says it considers to apply a Sevan FPSO for the project.

OMV in the latest 23rd Norwegian license round won stakes in four more Barents Sea blocks.

A key part of OMV’s current production in Norway comes from the fields Gullfaks, Gudrun and Edvard Grieg. Additional production is expected from the field development at Aasta Hansteen in the next years.