OMV acquires West of Shetland licenses from Hess

OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect, for $50 million. Depending on future developments, a contingent payment of as much as $35 million is possible, OMV said.

With the transaction, OMV will acquire 60 million boe of recoverable hydrocarbons, most of which lie in Cambo, currently under appraisal.

OMV will become operator of Cambo in place of Hess, increasing its stake in the P1028 and P1189 licenses to 47.5% from 15%. In license P1830, which includes Blackrock, the company’s share will jump to 75% from 25%. OMV will also take on 75% of license P1831.

OMV UK operates the adjacent Tornado discovery, the Suilven discovery, along with further prospects with tie-back potential to develop Cambo as an area hub (OGJ, Mar. 10, 1997, p. 31; OGJ Online, Oct. 19, 2009).

The company said the Blackrock prospect is between the Rosebank and Cambo discoveries and expected to be drilled in 2015. OMV holds interests in 22 licenses in West of Shetland—including Rosebank, Schiehallion, Tornado, and Suilven—and additional four licenses in the adjacent Faroe Islands.

Related Articles

Escalera Resources to form Albania joint venture

04/03/2014 Escalera International Co. LLC, a subsidiary of Escalera Resources Co. (formerly Double Eagle Petroleum Co.), has signed a memorandum of understand...

EIA: Ethanol spot prices rise on rail congestion, cold weather

04/03/2014 Spot prices for ethanol have increased steadily since early February, driven by logistical problems and harsh weather conditions, according to the ...

AMP files FERC request for abandonment of Midla Pipeline

04/03/2014 American Midstream Partners LP (AMP) has filed a request with the US Federal Energy Regulatory Commission to abandon use of its 1920s vintage Midla...

Scott links South Atlantic OCS access bill to jobs growth plan

04/03/2014 US Sen. Tim Scott (R-SC) introduced a bill that would reverse the Obama administration’s exclusion of four South Atlantic coastal states from activ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected