OMV sells off Wisting oil stake to Lundin Energy

Austria-based oil & gas company OMV is set to sell its stake in the Wisting oil field off the coast of Norway to Lundin Energy.

Lundin is set to acquire the 25% working interest in the Wisting development in the southern Barents Sea for $320 million. In addition, plans have been drawn up for a contingent payment of up to $20 million depending on the final project's capital expenditure.

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“The divestment of the Wisting oil field underlines OMV’s Exploration & Production strategy," said Johann Pleininger, OMV Board Member Exploration & Production and Deputy Chairman of the Executive Board. "We intend to increase the share of natural gas over oil to reduce the carbon intensity of the product portfolio in the future.”

OMV, a wholly-owned subsidiary of OMV Exploration & Production,  has interests in 39 production licenses on the Norwegian continental shelf, with 11 licenses operated.  Currently, the company has increased focus on low-carbon projects, shifting away from the substantial capital expenditures required for developing projects like Wisting over the next years.

A company spokesperson revealed that OMV is working on a new corporate strategy that would be presented in the first quarter of 2022.

The Wisting oil field is in the Hoop area of the Barents Sea approximately 310 km from the mainland of Norway. Wisting, with production planned to start in 2028, will be one of the largest development projects in Norway over the next few years, becoming the next Barents Sea production hub.

Nick Walker, President and CEO of Lundin Energy, commented: “The acquisition of a further stake in the high-quality Wisting development is a perfect example of how we look to supplement our organic growth strategy with opportunistic acquisitions."

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The Wisting development is planned to have power supplied from shore, which is firmly aligned with Lundin Energy's decarbonisation strategy and its commitment to becoming carbon neutral by 2023.

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