Gazprom and OMV sign documents to develop strategic cooperation
News Release, April 1, 2016 - 1:20 pm (CEST)
Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV AG, today signed in St. Petersburg a number of documents aimed at developing the strategic cooperation between the companies:
- the Second Term Sheet regarding the asset swap. The document specifies, inter alia, assets on the part of OMV to be included in the asset swap;
- the Agreement for oil supply to OMV from Gazprom Group’s portfolio. In accordance with the document, Gazprom will sell REBCO grade oil to OMV in the course of 2016 on FOB (free on board) terms. In addition, as agreed by the parties, OMV may be supplied with SILCO grade oil;
- the Agreement for scientific & technical cooperation and partnership. The document outlines main fields of the scientific & technical cooperation including in gas production, transportation, processing, underground storage and sales, industrial and information security, energy efficiency, environmental protection and hydrogen energetics. Additionally, deeper interaction is intended in the field of R&D management;
- the Memorandum of Understanding on cultural cooperation. At the initial stage, the document provides for, among other things, sponsoring cultural events in St. Petersburg and Vienna.
“Today, we signed a number of important documents aimed at further developing our dialogue with our strategic partner OMV. Our relationship is no longer limited to business. With the scope and extent of our cooperation growing, we are consistently moving toward our ambitious goals - boost Russian gas and oil supply to Europe and develop our companies’ R&D potential,” Alexey Miller said.
“The 48 year partnership with Gazprom is built on a very solid economic foundation. The documents signed today are an important milestone towards even closer cooperation in the future. I’m particularly pleased about the bridging of cultures between Russia and Austria which we are initiating today. After all, with an environment which is becoming ever more fractured, this is just the time to come closer together through a strong cooperation which embraces both business and culture,” Rainer Seele said.
Background
OMV is Gazprom’s main partner in Austria.
On September 4, 2015, Gazprom, BASF, E.ON, ENGIE, OMV, and Shell inked the Shareholders Agreement to construct the Nord Stream 2 gas pipeline system with the annual capacity of 55 billion cubic meters from Russia to Germany across the Baltic Sea.
On September 4, 2015, Gazprom and OMV also signed the Agreement on the main terms and conditions of an asset swap. If the deal is completed, OMV will acquire a 24.98 per cent stake in the project for developing Blocks 4A and 5A of the Achimov deposits at the Urengoyskoye field in exchange for Gazprom's participation in OMV assets.
On October 23, 2015, Gazprom and OMV signed the Memorandum of Understanding for oil supply to OMV from Gazprom Group’s portfolio.
REBCO - Medium gravity Russian export blend crude oil.
SILCO - Light sweet crude oil produced in Western Siberia.
Free on board (FOB) is a trade term requiring the seller to deliver goods on board of a vessel at its own expense and to cover all export duties. The buyer shall charter a freight vessel, pay for goods, and ensure their transportation after delivery.