Gazprom and OMV sign documents to further develop strategic cooperation
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 further developing the strategic cooperation between the companies.
The signing ceremony was held in the presence of Alexander Novak, Minister of Energy of the Russian Federation, Hans Joerg Schelling, Minister of Finance of Austria, and Suhail Al Mazrouei, Minister of Energy of the United Arab Emirates.
The following documents were signed:
- the second Term Sheet regarding the asset swap. The document specifies, inter alia, the assets to be provided by OMV;
- 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 the main areas of scientific & technical collaboration, including gas production, transportation, processing, underground storage and sales, process safety, information security, energy efficiency, and environmental protection. Furthermore, the companies will interact 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, organizing a music festival in St. Petersburg and Vienna.
“Today, we signed a number of important documents aimed at further advancing the dialogue with our strategic partner OMV. Our relationship is no longer limited to business. By consistently enhancing our cooperation, we are moving toward our ambitious goals – increasing the supplies of Russian oil and gas to Europe and developing the scientific and technical potential of our companies,” Alexey Miller said.
“Our 48-year partnership with Gazprom has a strong economic foundation. The documents signed today constitute a crucial step toward even closer cooperation in the future. I am especially pleased to highlight the Russian-Austrian cultural exchange process that we are launching today. As the world faces more and more conflicts, it is time to build collaboration that goes beyond business and expands cultural and spiritual connections,” Rainer Seele said.
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 Term Sheet regarding 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 (Russian Export Blend Crude Oil) is a grade of Russian export medium blend crude oil.
SILCO (Siberian Light Crude Oil) is a grade of 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.