All Stories
Follow
Subscribe to OMV Aktiengesellschaft

OMV Aktiengesellschaft

euro adhoc: OMV Aktiengesellschaft
OMV sells Sudan exploration blocks (E)

Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.
- USD 115 million for the Group’s two exploration blocks
- Proceeds to fund production growth in E & P
OMV, the leading oil and gas group in Central and Eastern Europe,
announces the signing of a sales agreement for its two exploration
blocks 5A and 5B in Sudan.  The contracts were signed with ONGC
Videsh Ltd. today, September 2, 2003.  The sale price was
approximately USD 115 million (mn).  The deal will have commercial
effect dating from January 1, 2003.  Completion of the transaction is
subject to approvals by the Sudan Government and contractual rights
of the consortium partners, which are expected within the next few
months.
Helmut Langanger, member of the OMV Board of Management with
responsibility for Exploration and Production (E & P) stated: "We
have obtained a good price for our Sudanese exploration interests. 
The proceeds will now be invested in the further expansion of our oil
and gas production."
OMV aims to double its daily E & P production to 160,000 barrels
(bbl) until 2008. In the half year 2003 production was about 117,000
bbl per day.  OMV has closely examined the pros and cons of the sale.
Langanger said: "We are always striving to optimize our portfolio. 
Even when taking the long-term exploration and production potential
as well as the continuing peace process in this country into
consideration, the sale of our Sudanese interests is the right
decision for us."
Blocks 5A and 5B are located in the Muglad Basin, some 700 km
south-west of the Sudanese capital Khartoum.  OMV is disposing of its
26.125% working interest in Block 5A, containing the undeveloped Thar
Jath field, and its 24.5% working interest in Block 5B.  In addition
to the basic sales price of USD 115 mn the agreement provides for
contingent payments pending further success in the blocks.
OMV’s core regions in E&P are located in the United Kingdom, North
Africa, the Danube and Adriatic area, the Middle East and
Australia/New Zealand.
Notes to editors:
OMV in Sudan
In 1997 OMV purchased a 26.125% share in Block 5A, operated by Lundin
Sudan Ltd. with the Malaysian PETRONAS and the Sudanese State company
Sudapet as partners. In mid-2003 PETRONAS acquired Lundin's shares.
In 2001 OMV acquired a 24.5% share in Block 5B, operated during
exploration by PETRONAS. In case of an oil discovery operatorship
will be shared among PETRONAS and Sudapet. Lundin Sudan Ltd. is also
a partner in the block.
Partners and interests in the blocks before the sale: 
Block 5A: PETRONAS   68.875%
          OMV        26.125%
          Sudapet     5.0%
Block 5B: PETRONAS           41.0%
          Sudapet            10.0%
          OMV                24.5%
          Lundin Sudan Ltd.  24.5%
OMV Aktiengesellschaft, with Group sales of EUR 7.08 billion and
5,828 employees in 2002, and a current market capitalization of EUR
2.8 billion, is Austria’s largest listed industrial company. As the
leading oil and gas group in Central and Eastern Europe (CEE), OMV is
active in 12 CEE countries in Refining and Marketing (R & M). OMV has
set a goal of doubling its 2001 market position to 20% by 2008. OMV
has international Exploration and Production activities (E & P) in 17
countries. The Group also operates integrated chemical manufacturing
plants. In addition, it holds a 25% stake in Borealis A/S, one of the
world’s leading manufacturers of polyolefins, and a 45% stake in the
BAYERNOIL refinery network, a stake of approximately 9% in the
Hungarian petroleum company MOL, and a 25.1% stake in The Rompetrol
Group NV, the largest private oil company in Romania.
ONGC Videsh Limited (OVL) is the international arm and a wholly owned
subsidiary of the Oil and Natural Gas Corporation (ONGC), which is
the fully integrated National Oil Company of India. ONGC has a market
capitalisation in excess of USD 15 billion (bn), and produced in
financial year 2002-2003 a turnover of over USD 7.5 bn and a profit
of USD 2.2 bn. OVL has oil and gas acreages in South East Asia,
Russia, Africa and the Middle East. The company is producing oil in
its Sudan project and gas in a Vietnam project. The current annual
production of oil and gas of the company from its foreign oil and gas
acreages is close to 4 mn tons (t) of oil and oil equivalent gas. The
management of OVL has aligned strategic plans to elevate the current
production levels of oil and gas to 20 mn t of equity oil and gas by
the year 2010, through more acquisitions of overseas oil and gas
assets.
end of announcement        euro adhoc 02.09.2003

Further inquiry note:

OMV
Investor Relations:
Brigitte H. Juen
Tel. +43 1 404 40-21622; e-mail: investor.relations@omv.com
Presse/Press:
Bernhard Hudik
Tel. +43 1 404 40-21660; e-mail: bernhard.hudik@omv.com
Thomas Huemer
Tel. +43 1 404 40-21660; e-mail: thomas.huemer@omv.com

Internet Homepage: http://www.omv.com

Branche: Oil & Gas - Downstream activities
ISIN: AT0000743059
WKN: 074305
Index: ATX, ATX Prime
Börsen: Bayerische Börse / official dealing
Frankfurter Wertpapierbörse / official dealing
Wiener Börse AG / official dealing
London Stock Exchange / official dealing

Original content of: OMV Aktiengesellschaft, transmitted by news aktuell

More stories: OMV Aktiengesellschaft
More stories: OMV Aktiengesellschaft