OMV, the leading energy Group in Central and Southeastern Europe, announces the agreement to progress a major re-development of the Schiehallion oil field to the West of Shetlands. The Schiehallion joint venture investment of approximately EUR 3 bn represents a significant vote of confidence in the long-term potential of this important oil field. Schiehallion has produced over 300 mn bbl since production started in 1998 and an estimated 325 mn barrels of resources are still available. The re-development of the field will take production out to 2035 and possibly beyond.

Jaap Huijskes, member of the OMV Executive Board responsible for Exploration and Production (E&P) stated: "This is a major milestone which is consistent with OMV’s strategy to develop and sustain a material, high quality business in the West of Shetlands region. The Schiehallion oil field is an established, high value asset with a strong future and this significant step will maximise the greater potential we see in this field."

The Schiehallion joint venture has gained extensive experience in the West of Shetlands over the past two decades and will use the latest technology to maximise recovery from this field. The project involves replacing the existing Schiehallion Floating Production, Storage and Offloading (FPSO) vessel with a new FPSO vessel which is scheduled to be installed in 2015. The new vessel will be 270 m long and 52 m wide and shared by the Schiehallion and Loyal field owners. It will be able to process and transport up to 130,000 bbl/d and store in excess of 1 mn bbl. There will also be a major investment in the upgrade and replacement of the subsea facilities to enable the full development of the reserves and potential drilling of additional wells. The new facilities are scheduled to commence production in 2016.

Balanced international E&P portfolio
In Q1/2011, OMV’s oil and gas production was 304,000 boe/d. Its proven reserves were about 1.15 bn boe at year-end 2010. In its core countries Romania and Austria, OMV is focusing on reducing the natural decline and on enhancing the recovery rates from mature fields. Future growth is expected to come via new field developments, exploration and acquisitions internationally. OMV intends to grow the existing portfolio to and beyond critical mass, on a production per country basis, and is looking to find new growth areas within the Caspian, Middle East and North Africa regions where OMV can leverage on its existing E&P exposure.