In the Middle East, OMV’s operations are supported by its close connection with the Abu Dhabi-based Mubadala Investment Company (formerly IPIC), OMV’s second largest shareholder.
Mubadala has been a shareholder of OMV AG since 1994 and holds 24.9 per cent of shares.
“Our long-term partnership with Mubadala is an essential part of the fabric of our company, while the close collaboration with ADNOC on a range of projects from Upstream to Downstream including petrochemicals is a key factor in our Middle East strategy. Building up mutual trust and respect, exchanging experience and technologies, and working together for future growth opportunities – this is one of the most satisfying aspects of our business,” says OMV CEO Rainer Seele
Shuwaihat – applying expertise in sour gas fields
OMV’s first upstream venture in UAE was secured in 2012. A previous gas discovery around Shuwaihat Island is being appraised by OMV as a 50 per cent equal partner together with Wintershall. Both companies have a proven track record of sour gas field developments and operations with more than 40 years of safe production from sour gas fields (which have high levels of H2S and CO2). The first well was drilled in 2015; for the second appraisal well drilling commenced in 2016 and included an extended horizontal side-track. Production testing was performed on the side-track and the initial vertical pilot hole. The next steps are to evaluate the well results and establish potential development concepts.
Pioneering exploration in Abu Dhabi
In 2013 OMV signed an agreement with ADNOC to jointly explore the eastern onshore region of Abu Dhabi towards Oman. As an operator, OMV is in a pioneering role, as this is the first pure exploration contract in Abu Dhabi since the mid-1960s. A 3D and 2D seismic acquisition programme was successfully completed in 2015, with the 3D-survey covering about 3,000 km2 in predominantly desert environment. Drilling started on the first OMV-operated exploration well in December 2016, reaching a depth of 4,880m in March. A well-testing programme for gas is currently underway.
International collaboration to drive up domestic gas production: North West offshore
To manage UAE’s increasing domestic gas demand and to reach production targets, ADNOC is exploring new developments for additional oil and gas production. Together with Occidental, OMV is involved in evaluating a number of undeveloped gas, gas/condensate and oil fields in the North West offshore region of Abu Dhabi including the Ghasha and Hail areas, which contain the UAE’s largest undeveloped offshore reserves.
A Technical Evaluation Agreement was signed in March 2016 for conducting a four-year work programme with seismic and drilling operations and engineering work to plan for potential field developments and establish a new regional gas infrastructure. OMV’s contribution involves nine seconded personnel and providing technical expertise for the evaluation activities. OMV is also involved in procuring project management consultant services and front end engineering design studies for the planned Ghasha and Hail development, which is the main part of the overall project.
A Memorandum of Understanding between ADNOC and OMV signed in May 2017 is a key step in expanding OMV’s downstream business in the Middle East. The agreement explores potential opportunities to work together to support ADNOC’s downstream business and the company’s smart growth strategy. This offers the opportunity to expand the cooperation across the entire value chain– from upstream to downstream, including petrochemicals. OMV holds a share of 36 per cent in Borealis which is engaged in the petrochemicals joint venture Borouge, owned by Borealis and ADNOC.