In a move to further optimize its portfolio and reduce investment requirements, OMV has agreed to sell a 30% interest in the Rosebank oil and gas project offshore U.K. to Suncor Energy.

The transaction, if approved by regulators, would leave OMV with a 20% interest in the project.

Under the terms of the agreement, Suncor will initially pay US $50 million on closing, which is expected in fourth-quarter 2016, OMV said in a news release. After OMV and partners Chevron North Sea Ltd. (40% interest) and DONG E&P (U.K.) Ltd. (10% interest) approve the Rosebank FID, OMV could get up to $165 million more.

OMV, however, said it is also realizing a EUR 530 million pre-tax impairment, which will be booked in second-quarter 2016, for its 50% Rosebank stake.

Currently in the FEED phase, which began in 2012, the project will include an FPSO vessel, production and water injection wells as well as subsea facilities and a gas export pipeline. The field, discovered in 2004, is about 130 kilometers northwest of the Shetland Islands in water depths of about 1,110 meters.

Offshore