October 17 (SeeNews) - Romania's top oil and gas group OMV Petrom [BSE:SNP] said on Monday it had reached an agreement with Mazarine Energy Romania on the transfer of 19 onshore oil fields plus three workover rigs and associated crews for an undisclosed purchase price.
"The transfer of the licenses is being done according to all rights and obligations arising from the Petroleum Law and other related regulations. The transfer is subject to approval by the relevant authorities," OMV Petrom said in a press release.
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OMV Petrom also said that the 19 fields are part of a package which had been available for transfer since 2014 as part of field portfolio optimization. In 2015, the 19 fields had a cumulative daily production of approximately 1,000 boe per day, representing less than 1% of OMV Petrom daily production, the company added.
The transaction is expected to be completed at the end of 2016, when Mazarine Energy Romania will assume operatorship of the fields and employment of over 200 staff currently employed by OMV Petrom.
“Within the current crude context, we strive to increase our efficiency and deliver higher value. This includes portfolio optimization which allows us to simplify operations and focus on delivering enhanced profitability from the remaining portfolio," OMV Petrom board member Peter Zeilinger said.
The capital for the transaction will come from the $500 million (454 million euro) equity line provided by Carlyle International Energy Partners, a $2.5 billion fund that invests in global oil and gas exploration and production, mid- and downstream, oil field services and refining and marketing in Europe, Africa, Latin America and Asia, the oil and gas group said.
In April 2015, the Carlyle Group agreed to acquire the entire Romanian business of Canada's Sterling Resources consisting of licence blocks 13 Pelican, 15 Midia, 25 Luceafarul and 27 Muridava.
“We are pleased to have agreed this investment as we continue to execute our strategy of focusing on low-cost, low-risk onshore assets and adding value through expert reservoir management and cost-effective operations,” founder and CEO of Mazarine Energy Edward van Kersbergen said.
In August, OMV Petrom said that its consolidated earnings before interest and taxes (EBIT) dropped 56% on the year to 561 million lei ($140 million/126 million euro) in the first half of 2016 affected by the oil price drop, and that it plans 20% lower investments for 2016.
OMV Petrom is the largest integrated oil and gas group in Southeastern Europe, with an annual oil and gas production of approximately 65 million boe in 2015. The group is present on the oil products retail markets in Romania and neighbouring countries through 784 filling stations, as of end-June 2016.
Blue chip OMV Petrom was trading 2.39% lower at 0.2245 lei at 0923 CET on Monday on the Bucharest Stock Exchange.
Mazarine Energy is a private oil and gas exploration and production company focusing on low risk, near-term, conventional exploration, development and production opportunities in Europe, Africa and the broader Mediterranean region. Headquartered in The Hague, the company is currently active in North Africa, with a majority operating interest in the Zaafrane license in central Tunisia, where two exploration wells were drilled close to existing infrastructure. Mazarine Energy Romania is a fully owned Romanian subsidiary of Mazarine Energy B.V.
(1 euro=4.5016 lei)