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HomeOil & GasOMV Petrom completes divestment of the production assets in Kazakhstan

OMV Petrom completes divestment of the production assets in Kazakhstan

OMV Petrom, the largest energy company in Southeastern Europe, has announced the closing of the sale transaction for its 100 per cent shareholding in Kom-Munai (KOM) and Tasbulat Oil Corporation (TOC) in Kazakhstan to MAGNETIC OIL.

KOM and TOC hold the production licenses for four onshore fields, respectively Komsomolskoe, Aktas, Tasbulat and Turkmenoi.

OMV Petrom announced the signing of the transactional at the end of 2020 and managed to close it in record time, a notable achievement, particularly in the difficult pandemic context. The transaction is part of OMV Petrom’s strategy to focus its regional expansion towards the Black Sea area in search of the most profitable barrels.

“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,” had said Christopher Veit, Member of the Executive Board of OMV Petrom, in charge of Upstream activity.

The impact from the transaction on OMV Petrom’s operational indicators is limited, as Kazakhstan operations represented only a small part of OMV Petrom’s overall portfolio. In 2020, the cumulated daily production of the four fields was 6.76 thousand barrels of oil equivalent (kboe) per day, representing 4.7 per cent of the Group production, while the 1P reserves of 21.8 million boe accounted for 4.6 per cent of Group reserves.

OMV Petrom entered the Upstream sector in Kazakhstan in 1998. All fields are located in the Mangistau region of West Kazakhstan near the Caspian Sea. The four onshore fields cover a total area of 86.52 square kilometres, including approximately 75 wells, production facilities and 200 km of pipelines.

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