OMV Plans to Sell 49% Stake in Austrian Downstream Company

Austria’s OMV has announced its intention to sell a stake of up to 49% in its wholly owned subsidiary Gas Connect Austria (GCA), as part of a plan to strengthen its cash flow and balance sheet.

GCA is a company that operates and constructs natural gas high-pressure pipelines in Austria. 

"As a first result of the ongoing review of our Downstream Gas asset portfolio, we decided to divest a minority stake in our regulated gas transportation business in Austria. In times of a difficult oil price environment, we are taking the appropriate measures to both optimize the portfolio and strengthen the Group’s cash flow and balance sheet", Manfred Leitner, Executive Board member responsible for Downstream, commented in a note released on Monday. 

OMV wrote that the transaction is expected to be signed in the course of 2016.

The news confirms the increasing focus on Merger and Acquisition Operations outlined in a previous article. 

TOTAL SELLS 15% INTEREST IN GINA KROG FIELD 

Also on Monday, Total signed an agreement to sell a 15% interest in the Gina Krog field in Norway to Tellus Petroleum, a subsidiary of Sequa Petroleum NV.

"As a result of a full comparative review of our global asset portfolio and in particular of our vast portfolio of opportunities in Norway, we have decided to further divest our participation in this project after the initial sale of an 8% interest in 2014. This sale is in line with our willingness to optimize the Group’s allocation of capital,” Arnaud Breuillac, President Exploration & Production, commented in a note.  

Sanctioned in 2013, the Gina Krog project is currently under development in the Norwegian North Sea and is expected to start-up in 2017. Upon completion of the sale, Total will retain a 15% interest in Gina Krog alongside Statoil (58.7%, operator), Tellus Petroleum (15%), PGNiG Upstream International (8%) and Det norske oljeselskap ASA (3.3%).