Austria's OMV to own stakes in Abu Dhabi oil fields for $1.5bn

An agreement with Adnoc is expected end of this month

OMV, the Austrian oil and gas company in which Mubadala Investment Company is the second-biggest shareholder, will pay $1.5 billion to acquire stakes in Abu Dhabi oil fields, the company said on Thursday.

"OMV and Abu Dhabi National Oil Company agreed that OMV will acquire a 20 percent interest in the concession for the offshore oil fields Satah Al Razboot (with the satellite fields Bin Nasher and Al Bateel) and Umm Lulu as well as the associated infrastructure for a purchase price of $1.5bn," the company said.

"The signing of the transaction documents is expected by the end of April 2018."

Mubadala Investment Company, the Abu Dhabi strategic firm with about $127bn in assets, owns around 25 per cent of OMV.

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The Austrian company is also a partner with Mubadala in petrochemical company Borealis.

Adnoc awarded in February another Mubadala company, Spain's Cepsa a 20 per cent stake in offshore concession areas for Dh5.5bn.

Adnoc is granting stakes in oil concessions up for renewal to new partners as it seeks to expand its oil production capacity to 3.5 million barrels a day.

Abu Dhabi’s recent partners on the various offshore concessions have so far been from Asia, reflecting the company’s pivot to secure market access in the East.

Last month, China National Petroleum Corporation picked up two stakes worth Dh4.3bn in offshore fields in Abu Dhabi, making China one of the largest foreign energy partners in the UAE.

The French oil major Total also won two stakes worth $1.45bn in offshore concessions in the emirate last month. European oil company Eni, Japan’s Inpex as well as an Indian consortium led by ONGC Videsh have also clinched stakes in concessions.