Austria-based OMV, the leading oil and gas group in Central Europe, signed on Monday a memorandum of understanding with Abu Dhabi’s International Petroleum Investment Company (IPIC), OMV’s second largest shareholder, to pursue upstream projects in the Middle East, North Africa and the Caspian region.
All the three regions constitute OMV’s core Exploration and Production (E & P) regions where the company has already established a significant presence. Both companies agreed to share their expertise and knowledge relevant to assessing future projects. International Petroleum Investment Company and OMV believe that this is a natural step in the development of their deepening partnership and cooperation. Both companies are in a position to complement each other, IPIC with its regional relationships and OMV with its technical and geological know how.
“This memorandum of understanding is another important step for strengthening the excellent cooperation with one of our major shareholders and helps us in our plans to further grow in our Middle Eastern, North African and Caspian E & P core regions”, said Helmut Langanger, OMV executive board member for Exploration and Production. “With this agreement IPIC will, in addition to downstream and petrochemicals, expand its investment activities to E & P with a world-class partner. In the future IPIC will also increase cooperation with other UAE-based companies and help them add value to their enterprises,” said Khadem Al Qubaisi, IPIC Managing Director. “IPIC will sign an agreement in mid-November with the Pakistani government to construct a 200,000 bpd oil refinery in Pakistan with an estimated cost of $5 billion to $6 billion," unveiled Al Qubaisi in a statement to Emirates News Agency, WAM. “IPIC will work with national oil companies to jointly implement exploration and production joint ventures”, he added.
OMV holds a balanced international E & P portfolio in 19 countries structured around six core regions, namely CEE, North Africa, Northwestern Europe, the Middle East, Australia/New Zealand and the Russia/Caspian region. OMV’s daily production volume is approximately 322,000 boe per day, and the company’s reserves at the end of 2006 are approximately 1.3 billion boe. In May 2007, OMV opened an office in Abu Dhabi to improve the screening of business opportunities and the coordination of existing activities in the region. IPIC has been OMV’s shareholder since 1994 and today holds 17.6% of OMV. (BusinessIntelligence)