Correction: Siccar Point to Buy OMV UK at Knock-down Price
Correcting relative contribution of Rosebank in Statoil deal in paragraph 2::
Austrian energy company OMV has reached an agreement to sell all the shares in its wholly owned subsidiary OMV (UK) at a loss to Aberdeen-based private equity firm Siccar Point Energy. The signing of the final paperwork had not been announced at time of press (23.40 GMT) but the deal had OMV supervisory board approval, OMV said earlier on November 8.
The overall price is envisaged to amount to up to $1bn. It consists of a firm payment of $750mn and a contingent payment related to the Rosebank final investment decision of up to $125mn for a 20% stake, representing a further discount since it sold a 30% stake to Suncor earlier in the summer below book value for $215mn all in. It had paid Statoil $2.65bn for a group of assets, of which Rosebank was less than half the total, in 2013.
On top, the parties agreed on a purchase price adjustment with respect to capital expenditure as of the effective date of the transaction on January 1, 2016. This results in a further consideration of about $125mn.
OMV expects a negative effect on OMV's Group EBIT according to IFRS of about €350mn ($386mn) at current exchange rates. This includes a loss on sale of some €458mn, envisaged to be offset by foreign exchange gains of about €100mn related to foreign operations that are expected to be realised at closing.
OMV CEO Rainer Seele
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(Credit: OMV)
Other OMV assets include an 11.8% stake in the Schiehallion oil field, operated by BP; and three projects: Cambo and Tornado, also in the west of Shetlands; and Jackdaw in the Central North Sea.
The transaction is subject to conditions, including regulatory approvals and is anticipated to close in Q1 2017.
Siccar was set up to build a UK asset position. Investors include Blackstone Energy and BlueWaterEnergy.
William Powell