Deal Insight
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.
Table of contents
- 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
Tables and charts
This report includes 10 images and tables including:
- Executive summary: Table 1
- Siccar Point production profile
- Wood Mackenzie valuation and consideration paid
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- OMV upstream portfolio: strategic fit of regions
What's included
This report contains:
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