March 6, 2020 / 12:28 PM / a month ago

OMV, Gazprom delay Siberian gas asset deal

VIENNA, March 6 (Reuters) - Austrian oil and gas group OMV said on Friday it had agreed with Gazprom that they would give each other more time for negotiations before sealing the planned purchase of Siberian gas assets.

The Austrian group had agreed in summer to pay 905 million euros ($1 billion) for 24.98% of Gazprom’s Achimov IV and V phase development at the Urengoy gas fields. The closing of the deal was initially planned for end-2019.

The two companies now aim to sign the final transaction documents by June 2022, OMV said in a statement.

“In these negotiations, material developments and changed circumstances until signing thereof... are to be taken into account by the parties in good faith, in particular in relation to the economic effective date and the purchase price,” the statement said. The negotiations were “non-exclusive”.

That could give both companies the chance to renegotiate the price and OMV more time before it has to pay and before it starts operating the fields. ($1 = 0.8829 euros) (Reporting by Kirsti Knolle Editing by Michelle Martin)

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