Aberdeen-based Siccar Point Energy has taken over the North Sea assets of OMV UK – a subsidiary of one of Austria’s largest conglomerates – in a $1 billion deal.
Siccar Point is an oil exploration company backed by funds managed by Blue Water Energy and Blackstone Energy Partners.
OMV UK, which is wholly owned by OMV, is headquartered in London. Its assets – concentrated in the West of Shetlands area – comprise current production, future developments and exploration acreage.
These include an 11.8 % interest in the Schiehallion oil field and a 20% interest in the Rosebank field. Other assets include a 5.6% interest in the producing Jade field and several West of Shetland discoveries that will be operated by Siccar Point.
Rosebank is situated north west of the Shetland Islands and is in the preliminary stages of development. OMV said earlier it has a design capacity that targets a production rate of about 100,000 barrels of crude oil and 80 million cubic feet of natural gas per day.
Siccar Point previously acquired an 8.9% interest in the Greater Mariner Area, including the Mariner oil field, in August 2016.
Jonathan Roger, Chief Executive, Siccar Point Energy, commented: “We identified OMV UK as a strategic fit for us given the scale, diversity, and quality of its asset portfolio.
“This acquisition turns Siccar Point into a full-cycle oil & gas company with a substantial and high-quality UK North Sea portfolio. We are very excited about this next stage in the company’s growth.”
Mustafa Siddiqui, Managing Director, Blackstone, said: “We are delighted to support Siccar Point in acquiring OMV UK. The combination of low-cost production in the near term from Schiehallion and long-term growth from the development of its other assets is very attractive, especially in the hands of a very capable management team with strong capital backing.”
Graeme Sword, Dundee-educated Partner of Blue Water Energy, said: “The combination of OMV UK with Mariner provides Siccar Point with interests in several of the UK’s largest oil & gas fields, with decades of future production.”