OMV To Sell UK Subsidiary for up to $1B

Integrated oil company OMV has agreed to sell 100 percent of the shares in its wholly owned subsidiary OMV (U.K.) Limited to Siccar Point Energy Limited for an overall transaction value of up to $1 billion.

This figure consists of a firm payment of $750 million and a contingent payment related to the Rosebank Final Investment Decision in the amount of up to $125 million. The parties have also agreed on a purchase price adjustment with respect to capital expenditure to the effective date of January 1, 2016. This results in a further consideration in the amount of approximately $125 million.

OMV UK has interests in 22 licenses at various stages of production, development, appraisal and exploration. The portfolio includes the Jade field (OMV share 5.6 percent), which is currently producing in the UK Central North Sea, and the Schiehallion redevelopment (OMV share 11.8 percent), which is operated by BP and scheduled to start production in 2017.

“We continue to deliver on our strategic targets. The sale of our UK Upstream operations is a major contribution to rebalance and optimize the OMV Upstream portfolio,” said Rainer Seele, OMV chief executive officer.

Johann Pleininger, OMV Executive Board member responsible for Upstream: “In line with our strategy we will reduce investment requirements in deep water offshore projects which give OMV the scope to strengthen its focus on low cost regions.”

The transaction is subject to conditions, including regulatory approval and is anticipated to close in the first quarter of 2017.

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