BLBG:OMV Says Austrian Shale Gas Test Drilling to Cost $175 Million
OMV AG (OMV), central Europe’s biggest oil company, said that two test drillings for shale gas in Austria would cost about 130 million euros ($175 million), according to Chief Executive Officer Gerhard Roiss.
The company, based in Vienna, plans to carry out the drilling in the next 12 to 24 months, Roiss told reporters in the Austrian capital today.
OMV announced last month that a recent geological study has show shale gas reserves in the Province of Lower Austria. The study suggests that the reserves are big enough to cover Austria’s annual natural-gas needs for 20 to 30 years, Roiss said today, adding that Austria requires 8 billion cubic meters a year.
The likelihood of drilling success is a 20 percent, Roiss said, adding that that the company wants to pursue “clean shale gas.”
“Only if we are able to go an ecologically sensible, justifiable way, that is economically viable, will we go into production,” the CEO said.
To contact the editor responsible for this story: Zoe Schneeweiss at zschneeweiss@bloomberg.net
