Gazprom, OMV Extend Siberia Asset Sale Deal

Austrian energy major OMV and Russian state-run gas producer Gazprom have announced an extension to their basic sale agreement for a gas asset in Siberia, the two companies said in a statement.

The firms said in separate statements negotiations for the preparation of a final agreement will take place by June 2022, on a non-exclusive basis. Closing of the deal was planned for the end of 2019. The companies didn’t disclose the reason for the fresh delay.

In October 2018, the companies signed a deal, under which OMV would acquire a 24.98% interest in Gazprom’s Achimov IV and V phase development at the Urengoy gas fields. Once the transaction is completed, Gazprom’s share in the project would be at 50.01% and Wintershall’s share would remain unchanged at 25.01%.

The negotiations “will take into account any material developments and changed circumstances, including the planned start of production of Achimov 4A/5A, and particularly in relation to the date and purchase price,” OMV said. The Austrian firm had agreed to pay $1 billion in the stake.

Gazprom said it exported 14.1 billion cubic meters of gas to Austria last year, under a long-term supply contract it holds with OMV. This agreement runs until 2040.

Scroll to Top