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9 Pages

Private equity backed Siccar Point pays up to US$1 bn as OMV exits UK


Private equity backed Siccar Point pays up to US$1 bn as OMV exits UK

Report summary

This is the UK's largest upstream deal since 2012, and one of the biggest PE-backed deals seen outside North America since the oil price crash. The deal includes three commercial fields and eleven sub-commercial fields. The flagship asset is Schiehallion (West of Shetland), which is due back onstream in 2017 after a major re-development project. We value the commercial assets lower than the consideration, on a standalone basis. But tax synergies would boost the value of the assets in Siccar Point’s portfolio. Upsides exist in the sub-commercial reserve portfolio (indicatively worth c.US$0.6 billion) and exploration acreage. Siccar Point now has a stake in three of the four largest UK fields by remaining reserves. With production as well as substantial volumes onstream in the near term, Siccar Point becomes a full cycle E&P business. The deal allows OMV to move away from the high risk associated with the West of Shetland, to focus on low-risk discovered resource opportunities.

What's included?

This report includes 1 file(s)

  • Private equity backed Siccar Point pays up to US$1 bn as OMV exits UK PDF - 390.32 KB 9 Pages, 7 Tables, 3 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Schiehallion (11.75%)
    • Rosebank (20.00%)
    • Jade (5.57%)
    • Sub-commercial Reserves
    • Exploration acreage
  • Deal analysis
  • Upsides and risks
    • Upside
    • Risks
  • Strategic rationale
    • OMV
    • Siccar Point
  • Oil & gas pricing and assumptions

In this report there are 10 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Siccar Point production profile
    • Upstream assets: Table 1
  • Deal analysis
    • Wood Mackenzie valuation and consideration paid
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
    • OMV upstream portfolio: strategic fit of regions
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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