OREANDA-NEWS. OMV, the integrated, international oil and gas company, is to invest in an offshore exploration block west of Madagascar. OMV will acquire a 40% stake in the “Grand Prix” block from Niko Resources Ltd (Niko). This acquisition is in line with OMV' s strategy “profitable growth” to develop a balanced Exploration & Production portfolio and opportunities also in the sub-Saharan African region.

OMV will farm-in to the area for the planned drilling of an exploration well. OMV will take over as the operator of the block prior to the commencement of drilling currently expected to be early 2015.

The deal is expected to close shortly, subject to the approval of the government of Madagascar. The other partners in the permit are Niko (35%) and EnerMad Corp (25%). The large block covers around 16,845 km2 and extends from the coast to water depths of more than 1,000 m.