Asset A&D

OMV Petrom Sells Kazakhstan Assets to Magnetic Oil, Exits Country

By Shivangi Jain
December 31, 2020
a minute read
Kazakh Oil Fields

OMV Petrom SA has entered into an agreement with privately-held Kazakh oil & gas company Magnetic Oil Ltd. to divest its 100% owned Kazakhstan focused subsidiaries, Kom Munai LLP and Tasbulat Oil Corporation LLP, for an undisclosed consideration. The deal marks OMV Petrom’s exit from Kazakhstan as it shifts its focus to its operations in the Black Sea region.

In January this year, OMV Petrom had commenced a sale process for its production licenses over the Komsomolskoe, Aktas, Tasbulat, and Turkmenoi fields located in western Kazakhstan, and had retained investment bank Jefferies to manage the sale process.

The four fields cover a combined area of approximately 87 sq. km in the Mangystau region. Komsomolskoe, located in the Mangistau-Ustyurt basin, is operated by KOM and was discovered in 1984 and brought on stream in 2008. Tasbulat, situated in the Mangyshlak basin and discovered in 1997, is operated by TOM, who is also the operator of the Aktas and Turkmenoi fields. Total proved (1P) reserves attributable to the fields are approximately 26.8 million barrels of oil equivalent (MMboe), and total production from the fields during 2019 was approximately 6,500 barrels of oil equivalent per day (boe/d).

“The decision will allow us to focus on the Black Sea region and continue to build a strong position in the area, in line with our growth strategy. We have already made important steps for expanding our offshore presence in the Black Sea, by entering Bulgaria at the end of last year and by winning an international tender in Georgia this year,” stated OMV Petrom’s board member Christopher Veit.

The transaction is subject to customary closing conditions, including the receipt of approval from Kazakhstan’s Ministry of Energy, and is expected to close during H1-2021.

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