Scottish E&P company grabs part of OMV

Siccar Point Energy said it's now a "full-cycle" player in the North Sea.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |  Nov. 9, 2016 at 7:10 AM
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ABERDEEN, Scotland, Nov. 9 (UPI) -- Siccar Point Energy, a company with offices in Scotland, took on more North Sea assets in a $1 billion deal to acquire the British subsidiary of OMV.

Siccar Point, an exploration and production company focused on North Sea developments, said it was building its regional reputation with an acquisition that included a minority stake in some of the larger regional oil fields.

"We identified OMV UK as a strategic fit for Siccar Point given the scale, diversity, and quality of its asset portfolio," CEO Jonathan Roger said in a statement. "This acquisition turns Siccar Point into a full-cycle oil and gas company with a substantial and high-quality U.K. North Sea portfolio."

Part of the deal includes a 20 percent stake in the Rosebank oil and gas field. OMV in October closed on the $51 million sale of a 30 percent stake in the Rosebank project to Canadian company Suncor Energy.

Rosebank is situated northwest of the Shetland Islands and is in the preliminary stages of development. OMV said it has a design capacity that targets a production rate of about 100,000 barrels of crude oil and 80 million cubic feet of natural gas per day.

Rosebank was included in a $2.6 billion deal with Norwegian energy company Statoil that OMV made in 2013.

"In line with our strategy we will reduce investment requirements in deep water offshore projects which give OMV the scope to strengthen its focus on low cost regions," Johann Pleininger, OMV's executive board member responsible for exploration and production, said in a separate statement.

In a statement on third quarter finances, OMV said it reduced its capital spending targets for this year and next, but generated positive cash for a period ending Sept. 9.

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