OMV acquires Shell’s upstream business in New Zealand

OMV, the international integrated oil and gas company based in Vienna, has agreed to acquire Shell’s Upstream business in New Zealand comprising joint venture interests in Pohokura (48%), the largest gas producing field in New Zealand, and Maui (83.75%) as well as related infrastructure for production, storage and transportation.

OMV is an existing partner in the acquired assets (OMV’s current stakes: 26% in Pohokura and 10% in Maui) and intends to assume operatorship in both joint ventures.

The economic effective date of the transaction is January 1, 2018. Average production of the acquired assets in the first two months of 2018 was around 31 000 boe/d.

Rainer Seele, Chairman of the OMV Executive Board and CEO: “This acquisition is an important step to develop Australasia into a core region in line with our new strategy.”

Johann Pleininger, OMV Board Member Upstream and Deputy Chairman of the Executive Board: “This acquisition builds on our operatorship capabilities in New Zealand, adds up to 100 million boe of recoverable resources and improves the quality of our Upstream portfolio.”

The purchase price is US$578 million and subject to customary adjustments. The transaction is likely to be completed in 2018. It is subject to conditions, including New Zealand Commerce Act and Overseas Investment approvals.

In parallel to the acquisition of the interests in Pohokura and Maui, OMV has also acquired Shell’s 60.98 % interest in the Great South Basin exploration block (GSB). The transfer of GSB is immediately effective and increased OMV’s stake in GSB to 82.93%.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/19032018/omv-acquires-shells-upstream-business-in-new-zealand/