OMV Divests Stake in Ghasha Concession to Lukoil Gulf Upstream

Austria-headquartered oil and gas player OMV has struck a deal with Lukoil Gulf Upstream, a subsidiary of Russia’s Lukoil, to divest its stake in a giant sour gas development off the coast of the United Arab Emirates (UAE).

OMV announced the signing and closure of an agreement to sell its 5% stake in the Ghasha concession to Lukoil Gulf Upstream for a total cash consideration of $594 million, after deducting a $100 million transaction fee.

The Ghasha concession, located in Abu Dhabi, is considered the world’s largest offshore sour gas development and is owned by a consortium led by Abu Dhabi National Oil Company (ADNOC), with a 55% stake. Following OMV’s decision to divest, the other shareholders now include Eni (25%), PTTEP (10%), and Lukoil (10%).

The concession comprises multiple projects, including the Hail, Ghasha, Dalma, Nasr, Satah al Razboot (SARB), Bu Haseer, Shuweihat, and Mubarraz offshore sour gas fields. ADNOC made a final investment decision in 2023 and awarded contracts for the Hail and Ghasha offshore gas development.

The development aims to operate with net-zero carbon dioxide (CO2) emissions and is part of ADNOC’s integrated gas masterplan to achieve gas self-sufficiency for the UAE, with a production target of over 1.5 billion standard cubic feet per day (bscfd) by the end of the decade.

The Hail and Ghasha project incorporates decarbonization technologies to capture 1.5 million tonnes per year of CO2, contributing to ADNOC’s commitment to nearly 4 mtpa of carbon capture capacity.

While OMV exits the Ghasha concession, the company remains focused on strengthening its hydrocarbon reserves, with its Norwegian subsidiary actively engaged in exploration drilling activities in the Norwegian Sea.