OMV Buys Stake in Western Siberia Gas Field for $2B
Vienna based oil and gas firm, OMV, has completed the acquisition of a 24.99 percent share in the Yuzhno Russkoye natural gas field, located in Western Siberia, from Uniper SE.
The purchase price paid by OMV to Uniper was $2 billion (EUR 1.719 billion) and includes customary closing adjustments. The transaction takes retroactive economic effect as of January 1, 2017 and was largely funded out of proceeds generated from disposals and OMV’s ‘strong cash flow’, according to an OMV statement.
“The closing of this landmark transaction is a further milestone in OMV´s successful delivery on its corporate strategy to establish Russia as a new core region of OMV,” said Rainer Seele, chairman of the OMV executive board and CEO, in a company statement.
“Our stake in Yuzhno Russkoye adds 100,000 barrels of oil equivalent per day (boepd) to OMV´s production. This boosts OMV´s total production to more than 430,000 boepd,” he added.
Johann Pleininger, OMV´s deputy CEO, said the acquisition would see OMV secure additional recoverable reserves of 580 million boe and further decrease the company’s production costs.
The Yuzhno Russkoye field is one of the largest gas fields in Russia, situated in the Yamal-Nenets region. Current plateau production at the field amounts to 25 billion cubic meters per year.
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