The deal is expected to close in the first half of 2021. Production equals 4 percent of Petrom's total production.
The Romanian OMV subsidiary Petrom separates from its Kazakh companies Kom-Munai LLP (KOM) and Tasbulat Oil Corporation (TOC) and sells them to Magnetic Oil Limited. The deal is expected to be concluded in the first half of 2021, OMV announced on Tuesday. KOM and TOC hold the licenses for four onshore oil fields, the production of which corresponds to around 4 percent of Petrom's total production.
OMV Petrom entered the upstream sector in Kazakhstan in 1998 and brought the fields into operation between 2000 and 2003. In 2019 they produced around 6,450 barrels a day. All fields are located in the Mangistau region in western Kazakhstan near the Caspian Sea. The four onshore fields cover a total area of 86.52 square kilometers, including around 75 boreholes, production facilities and 200 km of pipelines.
Focus on the Black Sea
Given a stable business, however, no further expansions in the country have been realized in recent years, and OMV Petrom has therefore decided to shift the focus of its international upstream business to the Black Sea, according to the press release.
“With this decision, we can concentrate on the Black Sea region and continue to build a strong position in the region in line with our growth strategy,” said Petrom CEO Christopher Veit. “We have already taken important steps to expand our offshore presence in the Black Sea by entering Bulgaria late last year and winning an international tender in Georgia this year.”
