OMV has agreed to sell its upstream business in Pakistan to Dragon Prime Hong Kong Ltd., Hong Kong, the company said on Feb. 28.

The agreed sale price was €157 million (US$193 million), whereas in case of a dividend payment to OMV or capital increase by OMV the purchase price will be adjusted. The transaction is subject to conditions, including the relevant regulatory approvals. Closing is expected by end of 2018.

OMV Pakistan holds interests in five development and production leases, and operates the producing Sawan, Miano, Latif, Gambat, and Mehar blocks. It further holds interests in five exploration blocks, of which four are operated.

The divestment represents a further step in OMV optimizing its upstream portfolio.

OMV also holds a 10% stake in PARCO, a joint venture between Pakistan and Abu Dhabi in the downstream business. This stake is not part of the divestment.