OMV Signs New Offshore Exploration License in Albania

OMV has signed a production sharing contract for exploration and production in a new offshore block in Albania. The contract was signed between the Albanian Government and OMV (Albanien) Adriatic Sea Exploration GmbH, a 100% subsidiary of OMV Aktiengesellschaft, on May 27, 2004. As operator OMV (Albanien) holds 50% in the block while the other 50% is held by Swedish partner Lundin Petroleum.

Helmut Langanger, member of OMV's Board of Management responsible for Exploration and Production (E&P), said: "The new license enlarges our portfolio in Albania. We will use state-of-the-art 3D seismic technology to search for oil and, for the first time in Albania, also for gas."

Within the next 4 years OMV will reprocess 1,000 km of 2D-seismic, undertake 400 km2 of new 3D-seismic and drill one exploration well.

OMV started its E&P activities in Albania in 1991. Through selective acquisitions in promising areas and the purchase of Preussag Energie's portfolio in early 2003, OMV became the leading international E&P company in Albania. Besides the new offshore block called Durresi, OMV is also engaged in onshore activities in Blocks 1, 4 and 5. Together with Hellenic Petroleum, OMV is currently drilling an exploration well in Block 5.

OMV subsidiary Preussag Energie International and Lundin Petroleum jointly undertook exploration activities for Block D onshore Albania. After the evaluation of geological and geophysical data and other core information of this area, an agreement with the National Petroleum Agency of Albania was negotiated to suspend operations on Block D and to transfer the remaining obligation of work to the new area.