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OMV sells UK business Siccar Point Energy for $1 billion

Staff Writer |
OMV said it is selling its UK business to Siccar Point Energy for up to $1 billion, putting an end to its exploration activities in Britain as it seeks to escape high costs in areas such as the North Sea.

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CEO Rainer Seele is unwinding a strategy set by his predecessor, who bought North Sea assets in 2013 for $2.65 billion, by shifting OMV's focus from output growth to cutting costs and cash generation.

This deal is expected to close in the first quarter of next year, but would be effective from January 1 this year.

The transaction, which is pending regulatory approval, would at current exchange rates shave 350 million euros ($386 million) off OMV's overall earnings before interest and tax to reflect lost revenues in 2016, OMV said.

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