Austria's OMV has sold its 30 per cent stake in the Chevron-operated Rosebank development in the UK North Sea to Canada's Suncor Energy.
Under the terms of the agreement, Calgary-based Suncor will make an initial payment of US$50 million. The deal is subject to approval and is expected to be completed in the fourth quarter of 2016.
After the deal is complete, OMV’s interest will amount to 20 per cent. The remaining stakes in the Rosebank joint venture are held by the operator Chevron North Sea Limited with 40 per cent and DONG E&P (U.K.) Limitedwith 10 per cent.
Following the co-venturers approval of the Rosebank project final investment decision, OMV would receive an additional consideration of up to USD 165 million.
The sale is part of OMV's strategy to optimise its upstream portfolio with the aim of becoming more efficient in terms of costs and investments.
Johann Pleininger, OMV Executive Board member responsible for Upstream said: “This transaction rebalances our OMV portfolio by reducing future investment requirements while retaining a large stake in the Rosebank development. At the same time, the addition of Suncor, with their substantial offshore experience, to the Rosebank consortium will strengthen the venture considerably as it moves towards project implementation.”
The Rosebank field was discovered in December 2004 and lies about 130 km northwest of the Shetland Islands in water depths of approximately 1,110 m. The project is currently in the Front End Engineering and Design (FEED) phase. The design capacity of the project is 100,000 barrels of crude oil and 80 million cubic feet of natural gas per day.