OMV Sells Pakistan Upstream Business

Austrian integrated oil company OMV has sold its upstream assets in Pakistan to Dragon Prime Hong Kong - a subsidiary of China's United Energy Group - for €157mn ($192mn), less or plus any dividends paid to OMV or capital increase by the time the deal closes. Subject to regulatory approvals it expects to close at the end of this year, it said February 28.

It said the deal was part of its portfolio optimisation and, for the avoidance of doubt, it does not include its stake in the downstream Parco joint venture in Pakistan.

OMV started exploration activities in the Middle Indus desert area of Sindh in 1991 and since then has discovered and developed several gas fields. Its website says it is among the largest international natural gas producers in Pakistan.

As operator of the Sawan, Miano, Latif, Tajjal,and Mehar blocks, OMV, together with its partners, delivers around 170mn ft³/d of gas and 1,450 barrels of condensate per day (total 30,000 boe/d) of operated production to the local market, or around 4% of Pakistan’s total gas supply. The net to OMV production in 2017 was 7,500 boe/d.

It also has stakes in five exploration blocks, and operates four of them.

Update June 28 2018: OMV confirmed the completion of this divestment. It said the final purchase price was €158mn. The transaction was signed on February 28, 2018.