Austrian oil and gas company OMV announced Friday that company has reached an agreement with Gazprom to participate in the development of areas IV and V of the Achimov formation in the Urengoy oil, gas and condensate field in Siberia.
According to press release of OMV, a Term Sheet was signed regarding long-term business projects between OMV's CEO Rainer Seele and Alexey Miller, Gazprom chairman at a meeting on Friday in Vladivostock, easternmost city of Russia.
"The parties agreed to a timetable and principles for exclusive negotiations regarding OMV’s participation in the development of Areas IV and V of the Achimov formation of the Urengoy oil, gas and condensate field in north Western Siberia, Russia based on an exchange of assets." OMV announced.
OMW proclaimed that if the deal is concluded, OMV will acquire a 24.98 per cent stake in the project in exchange for a participation in assets of OMV.
The Term Sheet was signed at the same occasion as the multi-party Shareholder Agreement for Nord Stream 2. These agreements mark a significant step forward in realization of the long term business projects envisaged in the Memorandum of Understanding signed between the two companies on June 18, 2015, press release said.
OMV CEO, Rainer Seele said in announcement that "This agreement is another step towards cooperation along the entire value chain with Gazprom. We are importing gas from Russia for our European customers. We are investing together into the security of supply realizing the Nord Stream 2 project and we are now extending our trustful partnership towards the production of natural gas in Siberia."
The Urengoy gas field in the northern West Siberia Basin is the world's second largest natural gas field after South Pars / North Dome Gas-Condensate field. The gas field has over ten trillion cubic meters.
By Muhsin Baris Tiryakioglu
Anadolu Agency
muhsin.tiryakioglu@aa.com.tr