OMV takes over Petronas’ Pakistan operations

KARACHI: OMV has taken over Petronas International Corporation’s rights to explore and produce gas in Pakistan.

The purchase will increase OMV’s gas production in Pakistan to around 25,000 barrels of oil equivalent (BOE) a day by 2014, OMV said in a press release on Tuesday.

The Vienna-based oil and gas giant currently produces around 14,000 BOE a day in Pakistan and 318,000 BOE worldwide.

The agreement includes the Mubarak, Mehar and Daphro exploration licences and the Mehar and Mubarak development and production leases.

“This corporate acquisition will expand OMV’s existing asset base and is a step towards reaching a critical mass in production in Pakistan,” said OMV executive board member responsible for exploration and production, Jaap Huijskes.

The closing of the deal is expected to take place within the next few months.

Petronas International Corporation Limited is a subsidiary of Malaysia’s national oil company Petronas.

OMV is expected to further invest in Pakistan to ensure its position as the biggest foreign gas producer in the country.

OMV is not new to acquisition as it acquired 41.58 per cent of Petrol Ofisi – Turkey’s leading company in the retail and commercial business – to further strengthen its leading position in the European market.

This proposed ownership change is subject to fulfillment of certain conditions, particularly approval by the Pakistani government.

This announcement follows news that OMV has the highest-earning board members in Austria. A study by the investor protection group IVA found OMV’s six-member board received 10.2 million euros in 2009 after being paid 8.3 million euros in 2008.

Published in The Express Tribune, September 22^nd, 2010.