OMV sells its stake in the Norwegian oil field Wisting to Lundin Energy AB
October 28, 2021
OMV, the international integrated oil, gas and chemicals company headquartered in Vienna, Austria, has agreed to sell its 25% stake in the Wisting oil field to Lundin Energy AB, an experienced Nordic oil and gas company.
The purchase price is USD 320 mn, payable upon completion. In addition, there is a contingent payment of up to USD 20 mn depending on final project CAPEX. The contingent payment will be triggered if a reduced CAPEX number relative to the current view is manifested in the Plan for Development and Operation. The economic effective date of the transaction will be January 1, 2021. The closing of the transaction is subject to approvals.
“The divestment of the Wisting oil field underlines OMV’s Exploration & Production strategy: We intend to increase the share of natural gas over oil to reduce the carbon intensity of the product portfolio in the future”, said Johann Pleininger, OMV Board Member Exploration & Production and Deputy Chairman of the Executive Board.
The Wisting oil field is in the Hoop area of the Barents Sea in PL 537 and 537B, approximately 310 kilometers from the mainland of Norway. Equinor Energy AS is operator for the project development phase. Six wells are drilled to date. The sixth and latest appraisal well (Wisting Central III) was drilled in 2017. Planned start of the Wisting production is 2028.
OMV is focusing increasingly on low-carbon projects, shifting away from the substantial capital expenditures required for developing this project over the next years.
OMV, the international integrated oil, gas and chemicals company headquartered in Vienna, Austria, has agreed to sell its 25% stake in the Wisting oil field to Lundin Energy AB, an experienced Nordic oil and gas company.
The purchase price is USD 320 mn, payable upon completion. In addition, there is a contingent payment of up to USD 20 mn depending on final project CAPEX. The contingent payment will be triggered if a reduced CAPEX number relative to the current view is manifested in the Plan for Development and Operation. The economic effective date of the transaction will be January 1, 2021. The closing of the transaction is subject to approvals.
“The divestment of the Wisting oil field underlines OMV’s Exploration & Production strategy: We intend to increase the share of natural gas over oil to reduce the carbon intensity of the product portfolio in the future”, said Johann Pleininger, OMV Board Member Exploration & Production and Deputy Chairman of the Executive Board.
The Wisting oil field is in the Hoop area of the Barents Sea in PL 537 and 537B, approximately 310 kilometers from the mainland of Norway. Equinor Energy AS is operator for the project development phase. Six wells are drilled to date. The sixth and latest appraisal well (Wisting Central III) was drilled in 2017. Planned start of the Wisting production is 2028.
OMV is focusing increasingly on low-carbon projects, shifting away from the substantial capital expenditures required for developing this project over the next years.
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