Austria’s OMV is to pay Gazprom around $1 billion for a stake in the Russian gas monopoly’s blocks hosting the Achimov formation in West Siberia, writes Eoin O'Cinneide.

The two partners are also aiming to finalise a field development plan for the gas and condensate play by the end of this year.

The pair signed an agreement at the St Petersburg International Economic Forum last week that is set to hand OMV a 24.98% stake in Gazprom-operate Achimov 4A/5A.

That amendment agreement followed a basic sale agreement in early October, which laid the path for the stake purchase but did not specify a price.

OMV said last week it will pay €905 million ($1.02 billion) for the proposed stake purchase, adding that it expects to invest a total of €950 million to the end of 2044 in developing the formation.

That includes €75 million compensation to be paid to Gazprom for past costs from 2017 to 2018.

Achimov hosts the Urengoy field, which is Russia’s largest gas and condensate field, extending over 12,000 square kilometres.

Gazprom expects production to start next year and plateau in 2026. OMV said its share at plateau will be more than 80,000 barrels of oil equivalent per day.

Under a deal announced in late 2016, Gazprom was to take a 38.5% stake in OMV Norway.

However, that deal was met with opposition from the Norwegian governemt amid concerns Gazprom could gain ownership of the country’s key gas infrastructure.

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Achimov stake for OMV