Today, OMV, through its fully owned subsidiary OMV (Tunesien) Production GmbH, signed an agreement to purchase 100% of the issued share capital of Pioneer Natural Resources Tunisia Ltd. and Pioneer Natural Resources Anaguid Ltd. (together known as Pioneer Tunisia) from Pioneer Natural Resources, an independent US oil and gas company, for a purchase price of US$800 million plus working capital of Pioneer Tunisia.
The working capital amounts to US$65.7 million and closing of the transaction is expected in first quarter of this year.
Jaap Huijskes, OMV executive board member, responsible for E&P, stated: “I am delighted to announce this acquisition of Pioneer’s Tunisian subsidiaries, as a result of which OMV will substantially increase its production and reserves base in Tunisia, thus ensuring a sustainable business in the years to come. OMV is fully committed to unlocking the hydrocarbon resource potential in southern Tunisia together with its partners and to supplying gas to the domestic market. The acquisition is in line with the company’s strategy to achieve synergy effects with existing OMV assets and to pursue bolt-on acquisitions in E&P to enable future growth.”
OMV expects that the transaction will significantly strengthen its position in Tunisia, an important country in the E&P core region of North Africa. OMV will acquire immediate production of approximately 5,700 boe/d (average net production in Q4/10), 90% is attributable to oil and 10% to gas. Based on a report by DeGolyer MacNaughton of June 2010, Pioneer Tunisia’s acreage holds 2P reserves of 38 million boe and 3P reserves of 59 million boe.
The acreage offers considerable exploration upside and will complement OMV’s existing south Tunisian assets, Jenein Sud and Nawaral. From a strategic point of view, OMV will be able to unlock substantial synergy potential in field operational activities. Furthermore, Pioneer Tunisia and OMV are both partners in the South Tunisia Gas Project (STGP) which aims to build a 320km gas pipeline from the Adam production concession to the city of Gabes by 2014 to supply the Tunisian domestic market with gas. With the now reached consolidated partnership structure, the decision-making process for the STGP will be facilitated, the company believes.
Pioneer Tunisia’s interest in the Anaguid exploration permit and in the Mona/Durra production concession is subject to a pre-emption right of Pioneer Tunisia’s partner under the respective Joint Operating Agreement. Anaguid and Durra/Mona account for 13% of the purchase price. In case the pre-emption right is exercised and Pioneer Tunisia’s partner acquires the shares in Pioneer Natural Resources Anaguid Ltd., the purchase price will be adjusted accordingly.
