OMV to acquire PETRONAS’ operations in Pakistan
23. September 2010. | 07:26
Acquisition will further strengthen OMV’s position as the biggest foreign gas producer in the country with an expected increase in production in Pakistan to approximately 25,000 boe/d by 2014
OMV, the leading energy Group in the European growth belt, has signed a Sale and Purchase Agreement with PETRONAS International Corporation Limited (PETRONAS) on September 20, 2010 to acquire PETRONAS’ oil and gas exploration and production interests in Pakistan.
These include the Mubarak, Mehar and Daphro exploration licenses and the Mehar and Mubarak development and production leases.
PETRONAS International Corporation Limited is a subsidiary of Malaysia’s national oil company PETRONAS. This proposed ownership change will be subject to the fulfilment of certain conditions precedent, in particular approval by the Government of Pakistan.
The closing of the deal is expected to take place within the next few months. PETRONAS and OMV have decided not to disclose any further details of this acquisition.
Jaap Huijskes, OMV Executive Board member, responsible for Exploration and Production: “This corporate acquisition will expand OMV’s existing asset base and is a step towards reaching a critical mass in production in Pakistan. The acquired portfolio has strong growth potential and will put OMV in a position to significantly support the company’s long-term strategy goals.”
For OMV, this transaction is in line with its corporate 3plus strategy to further grow within its exploration and production core regions such as the Middle East. OMV will further invest in Pakistan to ensure its position as the biggest foreign gas producer in the country.
OMV holds a balanced international E&P portfolio in 16 countries structured around six core regions, namely CEE, North Africa, Northwestern Europe, the Middle East, Australia/New Zealand and Caspian Region. OMV's daily production is approximately 318,000 boe/d and the Company’s proven reserves at the end of 2009 were approximately 1.19 bn boe.
OMV (PAKISTAN) Exploration GmbH is a 100% subsidiary of OMV Aktiengesellschaft and has been active in Pakistan since 1991. The activities of OMV are currently concentrated in the Middle Indus Region, where OMV has established itself in a strong position as an operator, but is also expanding in other areas of the country.
Currently, OMV has interests in a total of nine blocks: seven are exploration licenses and two are development and production licenses in the Middle Indus Basin. OMV’s current production in Pakistan amounts to approximately 14,000 boe/d.