Austria’s OMV pays $2.7bn for Statoil’s North Sea assets

Statoil-in-Offshore-Mozambique-Farmout19 August 2013, News wires – Austria’s OMV reported Monday that it is paying $2.7 billion to acquire several North Sea assets from Statoil in a transaction designed to materially enhance OMV’s upstream portfolio.

The news comes just a few weeks after OMV announced a major recruitment drive in order to help it meet significant expansion goals in its exploration and production activities.

On Monday OMV said it is acquiring 19 percent of the producingGullfaks field and 24 percent of the Gudrun field, both offshore Norway. In addition, OMV will take over 30 percent of the Rosebankfield and 5.9 percent of the Schiehallion field, both located west of the Shetland Islands. OMV’s agreement with Statoil also involves options for 11 exploration licenses.

OMV added that an “integral part of the transaction” is a research and development partnership with Statoil to develop new technologies for the exploration of gas and oil from mature fields. OMV said its comprehensive expertise in onshore enhanced oil recovery is an ideal complement to Statoil’s experience in offshore enhanced oil recovery.

OMV CEO Gerhard Roiss commented in a company statement:

“The transaction will provide a huge boost to OMV’s strategy and will be a key factor in achieving our 2016 targets. It confirms OMV’s clear focus towards increasing the significance of its E&P activities.

“We are acquiring significant positions in developments lying at the heart of our North Sea growth region, the development capital will be largely funded by the operating cash flows of the already producing assets which are part of the portfolio whilst the purchase price represents a reinvestment of the proceeds we have generated from disposals and working capital reductions from our downstream divisions over the last 18 months.”

In a separate statement, Statoil said the deal demonstrates the value of its Norwegian and UK portfolios.

Statoil CEO Helge Lund added: “Through this transaction, Statoil captures value created through asset development and unlocks capital for investment in high return projects in core areas. This includes our recent discoveries on the Norwegian continental shelf. We continue to deliver on our strategy to create value through active portfolio management and to further increase our financial flexibility.

“Statoil is pleased to strengthen the partnership with OMV on the Norwegian continental shelf. OMV is already a valued partner in Edvard Grieg and Aasta Hansteen, and this agreement enables our companies to develop the cooperation further.”

– Rigzone

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