UEG Completes Acquisition of OMV Group's Assets in Pakistan

On June 28, 2018, United Energy Group (UEG) completed acquisition of two subsidiaries of OMV Group, namely, OMV MAURICE ENERGY LIMITED (OMEL) and OMV (PAKISTAN) EXPLORATION GESELLSCHAFT M.B.H. (OPAK), thus obtaining the total equity of the two companies.

According to early news, on February 28, 2018, UEG signed the equity acquisition agreement with the parent company of OMEL and OPAK to purchase all issued capital stock of the two companies, with a total transaction amount of about 158 million Euros. After four-month efforts of both parties, the deal was approved by the Pakistani government and completed delivery on June 28.

As the upstream subsidiaries of OMV Group, OMEL and OPAK have upstream exploration and development businesses and assets in Pakistan. This deal is the second project UEG has completed so far in 2018.

OMEL and OPAK are Pakistan's seventh largest upstream oil gas companies, which own exploration and development blocks distributed in Sindh and Baluchistan. The two companies, with local employees of 450, deliver a net production of about 20,000 barrels of oil and gas equivalent, and the exploration potential of the undeveloped blocks is huge. After completion of the acquisition, UEG will have more than 16,000 square kilometers of operating areas in Pakistan, produce over 100,000 barrels of oil equivalent per day, and deliver a net annual production of over 5 million tons of oil and gas equivalent. It has become Pakistan's third largest oil and gas company, with more than 1200 Pakistani employees and 100% local management.

UEG has invested more than $2.7 billion in Pakistan since 2011.UEG has been successful in oil and gas businesses in Pakistan, promoted the local economic development and supported the local community education and health care cause. Because of that, UEG has been commended by the Pakistani government for many times, and has become a model of China's enterprises making investment in Pakistan. In the future, UEG will continue to step up exploration and development. In addition to the conventional oil and gas exploration, UEG will also be committed to the exploration and development of tight gas and shale gas, in the hope of becoming a pioneer in shale gas exploitation in Pakistan.