OMV Signs Major Oil Acquisition In Norway

OMV said Tuesday it has acquired a 20% stake in the Edvard Grieg field (formerly Luno, Production Licence 338). The agreement with the seller RWE Dea was signed on October 16. OMV will gain access to 2P reserves in excess of 38 mn boe of oil and associated gas and to production net to OMV of up to 19,000 boe/d in 2016.

Discovered in 2007, the Edvard Grieg field opened a new geological play type in the Utsira High in an underexplored region in the Norwegian North Sea. It is located approximately 180 km west of Stavanger in a water depth of around 110 m.

Several discoveries have since been made adjacent to the license PL 338, among them the Johan Sverdrup field, probably the fourth largest discovery made in Norway.

The Edvard Grieg field is operated by Lundin Petroleum which holds a 50% stake in the field; 30% are held by Wintershall. The Plan for Development and Operations (PDO) was approved by the Norwegian Parliament in June 2012. All major contracts for drilling, platform and topside construction covering the majority of investments have already been awarded.

According to the PDO, the acquisition will provide OMV with 2P reserves in excess of 38 mn boe and production of up to 19,000 boe/d in 2016. Additional exploration potential upside is identified within the block boundaries.

The purchase price amounts to EUR 247.9 mn as per effective date January 1, 2012 plus a contingent payment based on the achievement of certain operational milestones.

The deal is subject to approval by the Norwegian Ministry of Petroleum and Energy and by the Norwegian Ministry of Finance.

Jaap Huijskes, OMV Executive Board Member responsible for Exploration and Production: “I ́m glad to see that Norway is becoming a core country in our Exploration and Production portfolio. This is the third acquisition in Norway within a year.”