MOSCOW: Russia’s Gazprom CEO Alexey Miller and Austria’s OMV CEO Rainer Seele signed on April 1 in St Petersburg a number of documents aimed at further developing the strategic cooperation between the companies, including an asset swap, the Russian gas monopoly said in a press release.
The strategic agreements could also help the development of Nord Stream 2 gas pipeline project from Russia to Germany. Slava Smolyaninov, a strategist at BCS, reminded that OMV is one of the companies involved in the project. Moreover, Baumgarten is a key gas hub in Austria. “Gazprom wants to ensure its market share in Europe. It’s a welcomed development,” he told New Europe on April 4.
“All EU countries are important for Russia, especially at times when output at Gazprom is falling seriously every year, it is obviously important to ensure whatever supply they have for whatever demand they can get in the EU,” Smolyaninov said.
“Today [April 1], we signed a number of important documents aimed at further advancing the dialogue with our strategic partner OMV,” Miller said. “Our relationship is no longer limited to business. By consistently enhancing our cooperation, we are moving toward our ambitious goals – increasing the supplies of Russian oil and gas to Europe and developing the scientific and technical potential of our companies.”
The signing ceremony was held in the presence of Russia’s Energy Minister Alexander Novak and Austria’s Finance Minister Hans Joerg Schelling and UAE Energy Minister Suhail Al Mazrouei.
Gazprom supplies account for a third of European gas consumption. OMV is Gazprom’s main partner in Austria. On September 4, 2015, Gazprom, Germany’s BASF, E.ON, ENGIE, OMV, and Royal Dutch Shell inked the Shareholders Agreement to construct the Nord Stream 2 gas pipeline system with the annual capacity of 55 billion cubic metres from Russia to Germany across the Baltic Sea. On September 4, 2015, Gazprom and OMV also signed the Term Sheet regarding an asset swap. If the deal is completed, OMV will acquire a 24.98% stake in the project for developing Blocks 4A and 5A of the Achimov deposits at the Urengoyskoye field in exchange for Gazprom’s participation in OMV assets.
