OMV confirms that delayed Achimov deal in Russia is dead

Austria's OMV confirmed on March 1 it would no longer pursue the acquisition of a 25% interest from Gazprom in the Achimov 4A and 5A blocks at the Urengoy gas field in Western Siberia.

OMV did not say why it was dropping the purchase. But the move comes after fellow international oil companies BP, Equinor, ExxonMobil and Shell have all said they will withdraw from Russia's oil and gas industry in response to Moscow's invasion of Ukraine. TotalEnergies is staying in Russia, but has said it will not invest in additional projects in the country.

OMV reached a deal with Gazprom to buy a stake in the blocks in 2018, and the following year they agreed in principle on a sales price of €905mn ($1.01bn). Discussions to finalise the deal have dragged on since then.

Gazprom has a 75% stake in the blocks, having sold a 25% interest to Germany's Wintershall Dea in 2015. The pair launched production at 4A in January 2021, and at 5A in April of that year.

OMV did not mention any plans to divest its existing Russian holdings, which include a 25% interest in Gazprom's Yuzhno-Russkoye field that it acquired in 2015. Likewise, Wintershall Dea has not announced any intended divestments in Russia in light of the conflict in Ukraine, now in its seventh day.

However, OMV did say it would "review its involvement" in Russia's Nord Stream 2 pipeline to Germany. The pipeline was completed in 2021 but requires certification in order to start flowing gas. German chancellor Olaf Scholz said last week that process would be halted because of Moscow's recognition of east Ukraine's breakaway regions as independent.

OMV, Wintershall Dea, French Engie, Shell and German Uniper all provided loans to finance the $11bn construction of Nord Stream 2. But Shell said on February 28 it was cutting ties with the project, and press reports March 2 said the company, domiciled in Switzerland but controlled by Gazprom, was headed for insolvency.