euro adhoc: OMV Aktiengesellschaft / other / OMV signs agreement with Libyan NOC to renew contracts for major oil fields

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Contracts/OMV/Oil/Gas/Energy

17.07.2008

- Contracts for OMV´s blocks in Libya´s Murzuq basin extended to 2032
- Existing Exploration and Production Sharing Agreements (EPSAs)
transformed to standard EPSA IV contractual frame-work - New
exploration campaign planned in NC115 and NC186 - Increase in oil
production levels resulting from ongoing field development in NC115
and NC186

OMV, Central Europe's leading oil and gas group, signed agreements
with Libya's National Oil Corporation (NOC) for blocks NC115 and
NC186 in the Murzuq basin, onshore Libya, some 700 km south of
Tripoli. Partners in NC115 are Repsol (40%) and Total (30%). In Block
NC186 Repsol holds 32%, OMV and Total 24% each and StatoilHydro 20%.

The original EPSA contracts signed in 1994 and 1997 have been
converted to the EPSA IV contractual frame-work, which is now a
standard in Libya, reflecting the changes in the oil industry
environment. As part of the review process the agreements have been
extended for block NC115 by 15 years from 2017 and for NC186 by 10
years from 2023 until 2032, effective from January 2008. The
international consortia will receive a primary split of 13% of gross
field production in NC115 and 12% in NC186, both on an after tax
basis. Furthermore an extensive exploration campaign has been agreed
in NC115 and in NC186.

The new contracts also provide for a signature bonus of a total of
USD 1 bn for NC115 and NC186, of which OMV´s share in total will be
USD 249 mn, payable over three years reflecting the long-term
participation in these two blocks and the access to high-quality oil
reserves.

Helmut Langanger, OMV Executive Board member responsible for
Exploration and Production, said: "OMV has been active in Libya since
1975, with production since 1985. The extension of the Murzuq
contracts until 2032 reflects our strong relationship with Libya and
is an important step in securing our position in Libya in the future.
As a result of the ongoing development of the discoveries made in
both blocks, the total production from these two blocks will increase
from today´s 300,000 bbl/d to approximately 380,000 bbl/d in 2012.
The extended access to those world class fields and in-depth
knowledge of their future potential reassure us that these assets in
Libya will remain an essential and profitable part of our portfolio."

Following the signature of the EPSAs OMV will adapt its production
reporting on NC115. In order to make it comparable to general
reporting methods in the oil industry the production will be reported
on a pre-tax basis. The change to pre-tax reporting and the extension
of the contract period will lead to higher reserves for NC115,
increased production levels and a higher EBIT contribution. Reporting
for NC186 has already been adapted in Q4/06.

As a result of the new contractual framework, net income will be
affected in the first phase and it will lead to a higher corporate
tax rate. However, the outcome of the re-negotiations should be
considered in the context of OMV managing to extend oil production
from the world class El Shararah field in NC115 by 15 years,
receiving the award of exploration rights in the prolific NC115 and
NC186 as well as gaining further business opportunities in Libya.

Strong Libyan E&P portfolio OMV has been present in Libya since 1975
and made a major expansion in 1985 when it acquired 25% of Occidental
Petroleum´s producing assets in Libya. Since then OMV has expanded
its E&P operations significantly further by entering into an
agreement in 1994 with NOC, Repsol and Total for the development and
production of the giant El Sharara field (Block NC115), which
produces in excess of 200,000 bbl/d. In 1997, NC 186 was acquired. So
far, there have been eight discoveries in NC 186, five of which are
currently in production. In 2003, OMV and Repsol were awarded
Exploration Package 1 encompassing six blocks with a total size of
approximately 70,000 km². Three discoveries have been made to date.
Effective December 1, 2007 OMV together with Occidental signed
agreements for the re-development of the giant Nafoora Augila field
and other oilfields in the very prolific Sirte basin. The contracts
are valid for a 30 year period. Production from these fields is
expected to increase from today´s 100,000 bbl/d to 300,000 bbl/d.
OMV´s current production in Libya amounts to approximately 33,000
bbl/d.

end of announcement euro adhoc
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ots Originaltext: OMV Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

OMV

Investor Relations:

Ana-Barbara Kuncic

Tel. +43 1 40 440-21443; e-mail: investor.relations@omv.com

Press:

Bettina Gneisz-Al-Ani

Tel. +43 1 40 440-21660; e-mail: bettina.gneisz@omv.com

Thomas Huemer

Tel. +43 1 40 440-21660; e-mail: thomas.huemer@omv.com

Internet Homepage: http://www.omv.com

Branche: Oil & Gas - Downstream activities
ISIN: AT0000743059
WKN: 874341
Index: ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing