OMV buys UK offshore fields from Hess

Austria’s OMV is expanding its position in the UK core area. Agreement has been reached with the U.S. based oil and gas company, Hess to acquire four licenses in West of Shetland (WoS), UK, including the field Cambo and the Blackrock prospect.

OMV buys UK offshore assets from Hess

OMV CEO Gerhard Roiss: “This transaction further strengthens OMV’s portfolio of assets in our UK focus area, West of Shetland, where we are consistently executing our strategy of unlocking value from our investments by taking larger stakes and more projects with operatorship within our upstream portfolio.”

OMV UK has a unique position in the Cambo area offering potential valuable synergies, with the adjacent OMV-operated Tornado discovery and the Suilven discovery. There are also further prospects with tie-back potential to develop Cambo as a valuable area hub. With this transaction, OMV will acquire 60 mn boe of recoverable hydrocarbons, mainly in the field Cambo which is under appraisal, with further exploration and appraisal potential for USD 50 mn. Depending on future developments, a contingent payment of up to USD 35 mn is possible.

Jaap Huijskes, OMV Executive Board member responsible for Exploration and Production: “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.”

The Blackrock prospect is located between the Rosebank and Cambo discoveries and expected to be drilled in 2015.

OMV UK is one of the key players in WoS, a high-growth region in the UK offshore. OMV holds interests in 22 licenses in WoS, including Rosebank, Schiehallion, Tornado and Suilven and additional four licenses in the adjacent Faroe Islands.

The transaction is subject to the approval of the UK Government and joint venture partners.

Acquired interest:

Licenses P.1028 and P.1189 (including the field Cambo): Increase share from 15.0% to 47.5%
License P.1830 (including Blackrock prospect): Increase share from 25.0% to 75.0%
License P.1831: Acquire 75.0%

Press Release, March 19, 2014


Related news

List of related news articles