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.