OMV sells UK subsidiary in deal valued up to $1 billion

VIENNA, Austria -- OMV, the international integrated oil and gas company based in Vienna, has agreed to sell 100% of the shares in its wholly owned subsidiary OMV (U.K.) Limited to Siccar Point Energy Limited.

The overall transaction value is envisaged to amount to up to $1 billion. It consists of a firm payment of $750 million and a contingent payment related to the Rosebank final investment decision in the amount of up to $125 million. On top, the parties agreed on a purchase price adjustment with respect to CAPEX to the effective date of Jan. 1, 2016. This results in a further consideration in the amount of approximately $125 million.

OMV UK has interests in 22 licenses at various stages of production, development, appraisal and exploration. The portfolio includes Jade field (5.6%), which is currently producing in the UK Central North Sea, and the Schiehallion redevelopment (11.8%), operated by BP and located West of the Shetland Islands, which is scheduled to start production in 2017. In Rosebank, OMV holds a 20% share after the divestment of 30% to Suncor Energy in October. Further projects—Cambo, Tornado and Suilven in the region West of Shetlands and Jackdaw in the Central North Sea—are also part of the divested OMV portfolio in the UK.

The transaction is expected to close in the first quarter of 2017.