OMV Announces Major Gas Discovery In Norwegian Sea

By Alex Kimani - Aug 23, 2024

• OMV announced a major natural gas discovery offshore Norway on Friday.
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• OMV estimates total recoverable natural gas volumes of up to 140 million barrels of oil equivalent (boe).
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• Back in March, Norway's Aker BP made a much bigger-than-expected oil discovery in the Yggdrasil area of the North Sea.

Austria's integrated energy company OMV (OTCPK:OMVJF) has announced a major natural gas discovery in the Norwegian Sea. In a statement released on Friday, OMVB said it had found preliminary estimated total recoverable natural gas volumes of up to 140 million barrels of oil equivalent (boe) after completing a drilling operation in the Norwegian Sea targeting its Haydn/Monn exploration prospects. The deepwater prospect is located 300 km west of the Norwegian mainland at a water depth of 1,064m.

"This latest commercial discovery will further advance our diversification, while high-grading our portfolio in Norway. Ultimately, today's news further solidifies our position as a reliable gas supplier in Europe. It could also unlock significant potential in the area and extend the life of the Aasta Hansteen gas hub," Berislav Gašo, Executive Vice President of Energy at OMV, said. According to Berislav, OMV has a target to increase the share of gas in its production portfolio to 60% by 2030.

Back in March, Norway's Aker BP (NYSE:BP) (OTCQX:AKRBF) made a much bigger-than-expected oil discovery in the Yggdrasil area of the North Sea, the energy company reported on Thursday. Preliminary estimates indicate a gross recoverable volume of 40 million-90 million barrels of oil equivalent (boe), much higher than the company's earlier projection of between 18 million and 45 million boe. A month later, Norwegian oil and gas operator, DNO ASA, made a significant gas and condensate discovery on the Carmen prospect in the Norwegian North Sea. Preliminary evaluation of comprehensive data indicates gross recoverable resources in the range of 120-230 million barrels of oil. Carmen ranks as the largest discovery on the Norwegian Continental Shelf since 2013.

"Norway is the gift that keeps on giving. Carmen proves there are important discoveries still to be made and Norway's oldest oil company, DNO, will be part of this next chapter of the country's oil and gas story," said DNO's Executive Chairman Bijan Mossavar-Rahmani. 

Norway has become the largest supplier of natural gas to Europe after the continent cut ties with Russia following its war in Ukraine. Norway's pipeline gas exports to continental Europe have been robust in the current year, with flows averaging 313 million cu m/d. 

By Alex Kimani for Oilprice.com