OMV’s cooperation with Russia dates back to 1968, when it became the first European company to conclude a gas supply agreement with the former USSR. This pioneering move averted a supply shortage on Europe’s booming gas market and provided a model for several similar agreements with Western European companies. The Soviet Union remained a reliable supplier and new gas supply agreements were signed in 1974, 1975 and 1982. After decades of strong cooperation and secure supplies, in 2018 OMV extended these agreements with Russian Gazprom until even as far forward as 2040.
OMV has had a small representative office in Moscow since 1991. In 2017, OMV started building a full “hub” organization in St. Petersburg, which is responsible for all OMVactivities in Russia.
With the aсquisition of Yuzhno Russkoye, upcoming closing of deal regarding Achimov and other potential assets Russia has now become a core country for OMV and the Group continues to explore further opportunities in Russia.
Key facts and figures:
- Since 1968 more than 200 billion cubic meters of natural gas from Russia were transported to Austria
- Average production of 100 kboe/d
Decades of strong cooperation and secure supplies confirm that Gazprom and OMV have developed reliable and transparent partnership.
This cooperation is truly multifaceted and it has many dimensions and covers cultural, academic, scientific, technical & social interconnections between Austria and Russia.
In 2016, Gazprom and OMV started strategic scientific & technical cooperation. The research initiatives cover areas such as efficient drilling technologies, saving energy, environmental protection, innovation and R&D management. By now there are 7 joint working Groups with 20 working items.
In addition, Montanuniversität Leoben and the Gubkin Russian State University of Oil and Gas launched a joint double-degree master program supported by OMV and Gazprom. This program has been working since 2016. Already 2 groups of Russian students joined this program.
OMV and Gazprom implement joint social and cultural initiatives, including social and charitable events such as concerts and festivals in Vienna and St. Petersburg.
Since 2018 OMV is a proud partner of FC Zenit and Gazprom Zenit football academy. Our main goal is to support development of youth sport and healthy lifestyle in Russia and enhance cooperation between leading Russian and Austrian sport organizations.
In October 2018, OMV and Gazprom signed a “Basic Sales Agreement” which foresees a potential acquisition of a 24.98% interest in the Achimov IV and V phase development in the Urengoy gas and condensate field by OMV for a purchase price to be negotiated in good faith. Production is expected to start up in 2020.
The “Basic Sale Agreement” replaces the “Basic Agreement” concluded between OMV and Gazprom on December 14, 2016, which provided for a potential asset swap of the aforementioned interest against a 38.5% participation of Gazprom in OMV (NORGE) AS.
The execution and implementation of the potential transaction is, amongst others, subject to agreement with Gazprom on the final transaction documents and regulatory and corporate approvals at a later stage. The signing of the final transaction documents is expected in the beginning of the year 2019.
In 2017, OMV acquired a 24.99% share in the Yuzhno Russkoye natural gas field located in Western Siberia from Uniper SE.
The acquisition builds a new core area, Russia, in OMV’s Upstream portfolio adding 100,000 boe/d to OMV’s production.
The Yuzhno Russkoye field is one of the largest gas fields in Russia, situated production in Western Siberia. Current plateau production of the field amounts to 25 bn cubic meters per year (100%). The license will expire by the end of 2043. This modern and technically advanced gas field is the main source of hydrocarbons for the Nord Stream pipeline.
The transaction enables OMV to reach its strategic target of a 100% reserves replacement rate for a period of around five years based on OMV’s 2016 production volume.
The Yuzhno Russkoye transaction is retroactively effective as of January 1, 2017.