OMV expands portfolio in Madagascar
- OMV enters two blocks onshore Madagascar
- Farm-in agreed with Africa-focused explorer Tullow
- Transaction in line with OMV’s upstream growth strategy
After acquiring an interest offshore Madagascar last year, OMV is taking the next step to expand its position in the country by signing a farm-in agreement with Tullow, an exploration-led company that has been very successful in finding and developing new resources onshore and offshore Africa.
Jaap Huijskes, OMV Executive Board member responsible for Exploration and Production: "It is part of OMV’s strategy to build up a new exploration business in the region of Sub-Saharan Africa. The first steps were taken with entries into offshore Madagascar and more recently Gabon and Namibia. We are delighted to announce another farm-in agreement, this time onshore Madagascar".
With this new deal, OMV is expanding its footprint in Madagascar to onshore exploration acreage of more than 14,000 km² and at the same time partnering with an important and experienced player in the African exploration business. As part of the ongoing exploration campaign in these permits, OMV will participate in additional 2D seismic acquisition in the Mandabe block and the drilling of the first well in the Berenty block.
The transaction is subject to the approval of the Government of Madagascar.
Details on the agreement with Tullow:
- OMV will acquire a 35% participating interest in Block 3109 (Mandabe) and Block 3111
- (Berenty). Tullow will keep 65% and continue as operator
- 2D seismic in Block 3109 to be shot in the course of 2014
- First well in Block 3111 to be spud in Q1 2015
With Group sales of EUR 42.42 bn and a workforce of around 27,000 employees in 2013, OMV Aktiengesellschaft is Austria’s largest listed industrial company. The Exploration and Production business segment has a strong base in Romania and Austria and a growing international portfolio. 2013 daily production stood at approx. 288,000 boe/d. In Gas and Power, OMV sold approximately 425 TWh of gas in 2013. OMV operates a gas pipeline network in Austria and gas storage facilities in Austria and Germany with a capacity of 2.6 bcm. In Refining and Marketing OMV has an annual refining capacity of 17.4 mn tonnes (excluding Bayernoil) and as of the end of 2013 approximately 4,200 filling stations
in 11 countries including Turkey.