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Uniper to Sell Yuzhno-Russkoye Stake to OMV for EUR1.75 Billion

5 Mar 2017 11:36 pm
 
   By Monica Houston-Waesch 
 

FRANKFURT--German conventional-energy company Uniper SE (UN01.XE) late Sunday said it will sell its 25% stake in the Yuzhno-Russkoye gas field in western Siberia to Austria's OMV AG (OMV.VI) for around 1.75 billion euros ($1.86 billion).

The move is part of Uniper's strategy to divest itself of around EUR2 billion in assets to cut debt and focus on core operations, which no longer include exploration and production.

"The sale of the Yuzhno-Russkoye stake will allow us to effectively achieve our deleveraging target well ahead of schedule," Uniper Chief Executive Klaus Schaefer said.

Uniper operates in the gas field via a joint venture with Russia's Gazprom and Germany's Wintershall AG. The deal, subject to regulatory approval, is expected to close by the end of the year and will be retroactive to Jan. 1, 2017.

Separately, OMV said the purchase will add 100,000 barrels of oil equivalent a day, bringing its total output to 400,000 BOE a day and lowering overall production costs.

E.ON SE (EOAN.XE) remains a large shareholder in Uniper, after spinning off the company last year to focus on renewable energy.
 

--Write to Monica Houston-Waesch at nikki.houston@wsj.com
 

(END) Dow Jones Newswires

March 05, 2017 18:36 ET (23:36 GMT)

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