Shetland deal increases OMV’s stake in Cambo

Offshore staff

VIENNA, AustriaOMV has agreed to acquire Hess’ interests in four licenses west of Shetland. Initial value of the transaction is $50 million, although this could rise by an additional $30 million depending on future field developments.

The deal, which remains subject to approval from the UK government and the various license partnerships, will net OMV 60 MMboe of recoverable hydrocarbons.

Most of these are in the undeveloped Cambo field in licenses P.1028 and P.1189, where the company will increase its stake from 15% to 47.5%. It will also increase its share of license P.1830 (including the Blackrock exploration prospect) from 25% to 75%, and will take 75% of license P.1831.

Cambo is near the OMV-operated Tornado discovery and the Suilven discovery. There are other prospects that could be tied in to develop Cambo as a regional hub.

Blackrock is in between Cambo and the Chevron-operated Rosebank field. An exploratory well will likely be drilled on the structure in 2015.

Currently OMV has interests in 22 west of Shetland licenses including Rosebank, Schiehallion, Tornado, and Suilven. It has four more licenses nearby off the Faroe Islands.

03/19/2014

OMV west of Shetland

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