OMV Makes Austria’s Largest Natural Gas Discovery In 40 Years

Austria’s OMV has made the country’s largest natural gas discovery in 40 years at its Wittau Tief-2a … [+] exploration well.

OMV AG, July 28, 2023.

At a time of heightened tensions with Russia and concerns over energy security in Europe, Austria’s integrated energy company OMV has delivered a welcome surprise – the country’s largest natural gas discovery in 40 years, and certainly its biggest one in this century.

In a statement issued on Friday (July 28, 2023), OMV said its Wittau Tief-2a exploration well located in lower Austria has yielded positive results. A preliminary evaluation at the site indicates potential recoverable resources of approximately 48 TWh, or 28 million barrels of oil equivalent.

The significance of the discovery cannot be understated, not least for OMV and Austria. Once the Wittau well enters full production, the company expects its natural gas production in Austria to increase by 50%.

Alfred Stern, CEO and Chairman of OMV, said the new find – via a well drilled at a final depth of 5,000 meters after five months of operations – will likely make a significant contribution to the security of supply for its customers in Austria and wider Europe.

“The positive result of our exploration is exciting news for OMV and its customers. As we continue to work on our strategy to diversify our supply sources of natural gas, this new find marks a major contribution to our natural gas supply chain, with an expected increase of our local production.”

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OMV is currently considering different options to further appraise the field, as well as a fast-track development in conjunction with the OMV-operated natural gas facility in Aderklaa, situated approximately 10 km from the new discovery at Wittau.

The company confirmed its largest domestic gas discovery this century on the same day it signed a long-term LNG supply deal with oil and gas giant BP. In a joint statement, both companies announced the signing of a sale and purchase agreement, covering supply of up to 1 million tons of liquefied natural gas (LNG) per year for 10 years from 2026.

Under the terms of the agreement, BP will provide OMV with LNG which will be received and regasified through the Gate LNG Terminal in Rotterdam, the Netherlands, where OMV holds regasification capacity, or via other terminals in Europe.

“Our agreement with BP reflects our significant contribution to the security of supply to our customers in Austria and Europe. Our partnership with BP, spanning a 10-year period from 2026 is an important strategic step towards diversifying and safeguarding our supply sources in the long-term,” said OMV’s Stern added.

Jonty Shepard, Vice President, Global LNG Trading and Origination at BP, noted: “At BP, we see LNG as an essential part of the energy transition and essential for our own pivot to becoming an integrated energy company.

“We are pleased to conclude this LNG sale and purchase agreement with OMV, with whom we have a longstanding relationship. Europe is a significant LNG market and this agreement with OMV further demonstrates our LNG supply capability in the region, supporting security of supply for our European customers.”

Source link : https://www.forbes.com/sites/gauravsharma/2023/07/28/omv-makes-austrias-largest-natural-gas-discovery-in-40-years/

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Publish date : 2023-07-28 07:00:00

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