OMV yesterday announced that its 100% subsidiary OMV (U.K.) Ltd, together with international partners, has successfully completed testing of the Rosebank oil and gas discovery in Faroe-Shetland Channel, West of Shetland. The 205/1-1 well, operated by Chevron, lies in 1,100 metres of water. During the production test, the well flowed at choked rates of 6,000 barrels of good quality oil per day. It is expected that the drilling programme will be completed by November 2007, after which analysis of the appraisal data will determine the future work programme for the discovery.
Our view:
OMV’s current daily production in UK is 12.0 Mboe/d, which is expected to grow to 20Mboe/d by 2011. It is still unknown when the production will start, however we see a good chance for the company to reach our target given the recent discoveries. The news should be treated as neutral.