OMV acquires a 24.99% stake in South Russkoye from Uniper for US$1.85 billion

OMV is adding over 100,000 boe/d of net production and cementing Russia as a core strategic region with the acquisition of a 25% stake in South Russkoye from Uniper. The company will be joining Gazprom and Wintershall in the project, building upon the commercial relationships of OMV's CEO Rainer Seele, who used to head up Wintershall. The South Russkoye field lies in the Yamal-Nenets region of West Siberia, which is Russia's core gas producing area. The field is onstream, and production has reached its plateau of 2,434 mmcfd (25 bcm annually). South Russkoye feeds gas into the Nord Stream pipeline and is an important supplier to Europe. Though development of additional, more complicated horizons is expected, South Russkoye should prove to be a cash cow for the company. This cash can be funnelled towards development of Urengoiskoye Achimov IV/V, which OMV is accessing through a previously-announced swap with Gazprom.