OMV Exits Sudan

OMV has signed a sales agreement for its two exploration blocks 5A and 5B in Sudan. The contracts were signed with ONGC Videsh Ltd. on September 2, 2003. The sale price was approximately US $115 million. The deal will have commercial effect dating from January 1, 2003. Completion of the transaction is subject to approvals by the Sudan Government and contractual rights of the consortium partners, which are expected within the next few months.

Helmut Langanger, member of the OMV Board of Management with responsibility for Exploration and Production (E&P) stated: "We have obtained a good price for our Sudanese exploration interests. The proceeds will now be invested in the further expansion of our oil and gas production."

OMV aims to double its daily E&P production to 160,000 barrels (bbl) until 2008. In the half year 2003 production was about 117,000 bbl per day. OMV has closely examined the pros and cons of the sale. Langanger said: "We are always striving to optimize our portfolio. Even when taking the long-term exploration and production potential as well as the continuing peace process in this country into consideration, the sale of our Sudanese interests is the right decision for us."

Blocks 5A and 5B are located in the Muglad Basin, some 700 km southwest of the Sudanese capital Khartoum. OMV is disposing of its 26.125% working interest in Block 5A, containing the undeveloped Thar Jath field, and its 24.5% working interest in Block 5B. In addition to the basic sales price of US $115 million the agreement provides for contingent payments pending further success in the blocks.

In 1997 OMV purchased a 26.125% share in Block 5A, operated by Lundin Sudan Ltd. with the Malaysian PETRONAS and the Sudanese State company Sudapet as partners. In mid-2003 PETRONAS acquired Lundin's shares. In 2001 OMV acquired a 24.5% share in Block 5B, operated during exploration by PETRONAS. In case of an oil discovery operatorship will be shared among PETRONAS and Sudapet. Lundin Sudan Ltd. is also a partner in the block.