OMV - Production targets to suffer

Thursday, January 29, 2015

Austria's OMV says it is to delay projects, setting back its production targets, due to the "rapid fall" in oil prices.

CEO Gerhard Roiss said the fall in Brent oil prices by 58% since a high in mid-2014 represented a "seismic shift" for the industry.

As a result, OMV Group’s annual investments are to fall to EUR 2.5-3 billion for the years 2015-2017, down from EUR 3.9 billion a year planned for the period 2014 to 2016.

The majority of investment will continue to go to the upstream business segment, said the firm.

Roiss said: "We remain positive on our flagship projects in execution; however, we are reducing the speed of implementing certain projects which will inevitably lead to a delay in reaching our previously stated 2016 production target of ~400 kboe/d."

OMV's production was 318,000 boe/d in Q4 2014, up 15% on Q4 2013. OMV says its activities offshore Norway are the most important driver behind the rise in production. 

Categories: Offshore Activity Europe Oil Exploration

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