OMV signed a binding "basic agreement” with Gazprom for a potential asset swap transaction, OMV announced Wednesday.
Under the transaction, Gazprom will receive a 38.5 percent stake in OMV's Norwegian subsidiary OMV (Norge) AS. In exchange, OMV will obtain a 24.98 percent stake in the project for developing blocks 4 and 5 of the Achimov formation in the Urengoy oil, gas and condensate field, in Western Siberia, Russia.
"The swap transaction would add approximately 560 million barrels of oil equivalent to OMV’s reserves representing OMV’s share of production until the end of contracts in 2039," OMV said.
Production in the Achimov formation is expected to start up in 2019 and to reach a plateau of more than 80,000 barrels of oil equivalent per day in 2025.
OMV’s share of total investments is expected to amount to approximately €0.9 billion from 2017 to 2039.
The swap transaction effective from Jan. 1, 2017 is anticipated to be cash free except for potential customary closing adjustment payments. The signing of the final transaction documents is expected by mid-2017.
The basic agreement sets out the key principles and future steps regarding the transaction.
(Anadolu Agency)
