Austria’s OMV follows domestic natural gas discovery with another deposit off Norway

The Austrian energy group OMV has strengthened its presence in the natural gas sector with the announcement of a major discovery in the Norwegian Sea.

In a statement on Friday, the company said it had completed a drilling operation in the Norwegian Sea for its Haydn/Monn exploration areas. The well found total recoverable natural gas quantities of up to 140 million barrels of oil equivalent (boe), according to preliminary estimates.

The deepwater exploration project in the Norwegian Sea is located 300 km west of mainland Norway in a water depth of 1,064 m. To bring product to market, the discovery is approximately 65 km from the existing infrastructure of the Polarled pipeline and the Aasta Hansteen field and industrial center in which the Company already has an interest.

Berislav Gašo, Executive Vice President of Energy at OMV, said: “By focusing on gas as a transition fuel, OMV is investing in affordable energy solutions and contributing to a more sustainable energy mix. Our goal is to increase the share of gas in our production portfolio to 60% by 2030.”

“This latest commercial discovery will further drive our diversification while adding value to our portfolio in Norway. Ultimately, today’s news further cements our position as a reliable gas supplier in Europe. It could also unlock significant potential in the region and extend the life of the Aasta Hansteen gas hub.”

The company’s subsidiary, OMV Norge, is the operator of the field with a 40% share. Other partners in the project are Vår Energi (30%) and Inpex Idemitsu Norge (30%).

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OMV’s latest natural gas announcement comes just under twelve months after Austria’s largest natural gas discovery in 40 years and certainly the largest of this century.

In July 2023, the Wittau Tief-2a exploration well in Lower Austria delivered positive results. A preliminary evaluation of the site indicated recoverable resources of around 48 TWh or 28 million boe. The importance of such discoveries cannot be underestimated, not least for OMV and Austria.

Once the Wittau well reaches full production, the company expects to increase its natural gas production in Austria by 50%. The discovery was widely welcomed in Central Europe at a time of rising tensions with Russia and concerns about the continent’s energy security.

OMV, for its part, is transitioning from its traditional energy past to becoming a sustainable fuels, chemicals and materials company with a focus on circular economy solutions, operating in three integrated business areas – Energy, Fuels and Raw Materials, and Chemicals and Materials.

Like many of its European competitors, the company hopes to gradually transition to low-carbon business models and has set a goal of becoming climate neutral by 2050. OMV’s revenue in 2023 was 39 billion euros (43.4 billion US dollars).

In June, the company unveiled a new logo and brand, replacing the blue logo that has been typical for decades with a green circle with the slogan “forward for good.” The move “visually” underlines OMV’s ambitions for a greener corporate future and its desire to achieve net zero.