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.

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.

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