OMV wants to fo­cus Iran push on its ex­ist­ing oil finds

Kuwait Times - - BUSINESS -

VI­ENNA: Aus­trian en­ergy group OMV wants its ex­pan­sion in Iran to fo­cus on the oil­fields it has al­ready dis­cov­ered and it is pre­pared to in­vest only a lim­ited amount there, Chief Ex­ec­u­tive Rainer Seele said yes­ter­day.

Seele, who is pre­par­ing a new strat­egy aimed at adapt­ing to low oil prices and ex­pand­ing pro­duc­tion cost-ef­fi­ciently, said he had no in­ter­est in a much more ex­pen­sive gas project in Iran, ap­par­ently re­fer­ring to the mas­sive South Pars gas field. “At the end of the day for us it is not sim­ply about pro­duc­ing oil or gas-we want to make prof­its,” he said at a joint event with Ger­hard Schroeder, the former Ger­man chan­cel­lor who is now an ex­ec­u­tive for the pipe­line con­sor­tium Nord Stream.

OMV is jostling with many other com­pa­nies seek­ing to do busi­ness with Iran as eco­nomic sanc­tions look likely to be lifted un­der a land­mark deal reached this sum­mer be­tween Tehran and world pow­ers over the Ira­nian nu­clear pro­gram.

While OMV was keen to move as soon as sanc­tions are lifted, which he ex­pected to hap­pen in the first or sec­ond quar­ter, Seele said the eco­nomic con­di­tions had to be right, and the com­pany would fo­cus on the fields it knows best. “We dis­cov­ered two oil­fields there,” Seele said. “We have the ad­van­tage that we are in­ter­ested specif­i­cally in those fields that we dis­cov­ered our­selves. We do not first have to do a seis­mic eval­u­a­tion, and we have a very pre­cise idea of the qual­ity the oil­fields have, and of the re­quired de­vel­op­ment meth­ods.”

OMV made a dis­cov­ery at the Mehr block in western Iran, but the com­pany de­clined to name the two fields Seele re­ferred to. Seele also ap­peared to rule out big­ger in­vest­ments in Iran. “There is a very, very big gas field,” Seele said, ap­par­ently re­fer­ring to South Pars. “If you want to get in­volved in such a busi­ness in Iran, the first ques­tion that will be asked is ‘How many bil­lions have you brought with you?’”

OMV would make its big in­vest­ments else­where, he said. “That is cer­tainly not the strat­egy we are pur­su­ing. We are pri­mar­ily in­ter­ested in in­vest­ing here in Aus­tria, in in­vest­ing in the North Sea, and in hav­ing the rest of the port­fo­lio bal­anced in such a way that a smaller Ira­nian ac­tiv­ity fits in­side it.” — Reuters

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.