The Austrian energy group OMV is accelerating its return to North African operations after a lengthy hiatus. Following a 13-year pause, the company has recommenced exploration activities in Libya, with initial drilling yielding promising results. Concurrently, its subsidiary, OMV Petrom, is progressing a multi-billion euro natural gas project in the Black Sea.
Key Strategic Developments
- Preparatory talks with Libya’s National Oil Corporation (NOC) have established a framework for a 2025 exploration program.
- An initial well in the Sirte Basin is flowing at a rate exceeding 4,200 barrels of oil per day.
- The company is moving to lift the Force Majeure status on three of its Libyan contract areas.
- The Neptun Deep gas project remains on schedule for first production in 2027.
- An agreement has been reached to extend production licenses in Romania through 2043.
Libyan Exploration Bears Fruit
OMV’s strategic re-engagement in Libya has delivered an early success. The B1 exploration well on Block 106/4, completed in November, reached a total depth of 3,193 meters. Subsequent production tests confirmed a daily output of approximately 4,200 barrels of oil alongside 2.6 million cubic feet of natural gas. This discovery represents the first productive find since operations resumed.
These results were a focal point of a technical meeting between OMV representatives and NOC experts in Tripoli on December 10. Discussions centered on evaluating the B1-106/4 discovery, reviewing results from the C1-106/4 well, and formalizing procedures to rescind the Force Majeure declaration. OMV has indicated its readiness to formally lift this status for contract areas NC74, NC29, and C102. This administrative step will enable the company to initiate 2D and 3D seismic studies and plan additional exploration drilling across all three concessions.
Neptun Deep Project Progresses
In parallel, development of the major Neptun Deep gas field in the Black Sea continues according to plan. The project, holding an estimated 100 billion cubic meters of recoverable resources, represents an investment of up to €4 billion. Work is currently underway to complete four production wells in the Pelican South field before the drilling rig relocates to the Domino field. A further six deep-water wells are scheduled for Domino, with first gas expected in 2027.
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Immediately following the conclusion of the Neptun Deep development drilling, the partners will commence the Anaconda-1 exploration well. OMV Petrom and its partner Romgaz have secured the Transocean Barents drilling rig for this campaign. The well will be drilled in water depths of roughly 1,500 meters, approximately 200 kilometers offshore from Constanta, to a planned total depth of nearly 3,800 meters. Estimated costs for this exploration effort reach up to €90 million.
Romanian License Secured Until 2043
OMV has also solidified its long-term position in Romania. The company and the Romanian state have agreed in principle on a 15-year extension of its production licenses, securing operations until 2043. Under the new terms, onshore royalties will rise by 40 percent. In return, OMV Petrom will assume historical environmental and decommissioning liabilities with an estimated value of around €600 million. The framework also includes adjustments to the supplementary gas taxation to encourage continued investment.
This dual-focused strategy in North Africa and the Black Sea aligns with the broader Strategy 2030 outlined by OMV in October. The group aims for a total production output of roughly 400,000 barrels of oil equivalent per day by 2030, targeting a cash break-even price below $30 per barrel. The combined projects are designed to open new production streams from 2026 onward and extend the company’s reserve life beyond the seven-year threshold.
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