OMV Begins Production in Block S2 in Yemen

OMV has begun production in Block S2 in Yemen. The field is expected to have a life of at least twenty years. The development area for oil discoveries in Block S2 comprises an area of approximately 1,000 square km in central Yemen. Investments for the first development step amount to US $85 million. Current estimates for the full field development, including phases 1 and 2, are US $250 to US $300 million. Block S2 is situated close to Block 2 (Al Mabar), for which OMV signed a Production Sharing Agreement (PSA) on July 13, 2005.

Block S2 (Al Uqlah) was acquired with the international portfolio of Preussag in 2003. In the same year OMV discovered oil with the well "Al-Nilam-1". Then, following comprehensive block evaluation in 2004, a further well (Habban-1) was successfully drilled and tested on April 6, 2005. The Al-Nilam-ST1 well successfully tested the potential of the fractured basement in another compartment of the Habban field. The PSA for Block 2 was ratified by the Parliament of Yemen on May 15, 2006 and was signed on June 7, 2006 by President Ali Abdulla Saleh.

Interests in block S2 are OMV as operator with 44%; Sinopec International with 37.5%; The Yemen General Corp. for Oil & Gas with 12.5%; and The Yemen Resources Limited with 6%.