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OMV Petrom divests production assets in Kazakhstan to focus on the Black Sea

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

Both KOM and TOC hold the production licenses for four onshore fields, respectively Komsomolskoe, Aktas, Tasbulat and Turkmenoi. The cumulated daily production of the four fields represented around four per cent of the group production in 2019.

Closing of the transaction is subject to certain conditions precedent including approval by the Kazakh Ministry of Energy and is expected in the first half of 2021.

Behind the transaction, there is the company’s goal to focus more on the Black Sea region. OMV Petrom entered the Upstream sector in Kazakhstan in 1998. The business has been stable, but no further in-country expansion has been realised in the last few years and OMV Petrom has decided to shift the focus of its international Upstream business to the Black Sea.

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

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