OMV, Gazprom Sign MoU on Oil Supply

OMV, Gazprom Sign MoU on Oil SupplyOMV, Gazprom Sign MoU on Oil Supply

Russia's Gazprom said on Friday it had signed a memorandum of understanding with Austrian energy group OMV on the supply of oil. The document reflects the intention of the parties to consider the possibility of organizing the supply to OMV of oil from the Gazprom Group's portfolio, Reuters reported. The parties reportedly discussed cooperation on Nord Stream 2 and a potential asset swap. OMV is among the many European companies eying potential investment in the Iranian energy sector. The company's CEO Rainer Seele met with Iran's Oil Minister Bijan Namdar Zanganeh last month on utilizing Austrian technology to boost extraction from the country's rich oil and gas fields. OMV is now working on plans to cut costs and expand low-cost production, Seele said on Friday. He said the strategy would be presented early next year and suggested that Iran and Russia were among promising prospects for increasing output. The company said last week it would take around $1.11 billion in special charges related to the impact of weak crude prices.