OMV Sets New Targets for Further Growth to 2010
OMV Aktiengesellschaft sets new targets for the company growth until 2010. After achieving its 2008 goals ahead of schedule, the company now aims for a production volume of 500,000 boe per day by 2010 and for further expansion of its Refining and Marketing business in the EU accession area. In addition, OMV will run an international gas business marketing 20 bcm of gas by 2010. OMV's CEO Wolfgang Ruttenstorfer stated: "Our successful expansion has enabled us to achieve the growth targets set for 2008 way ahead of schedule. OMV has resumed the leadership position in Central Europe and we are committed to further growth in the next five years. OMV until 2010 will be the most successful company in capitalizing on the EU 'growth belt' in oil and gas and securing the future supply through a strong upstream position."
Clear number one in Central Europe
OMV is the largest oil and gas group in Central Europe, with oil and gas reserves of approx. 1.4 bn boe. Daily production rose to approximately 340,000 boe (2001: 78,000 boe/d). Annual refining capacity is at 26.4 mn t. OMV has 2,457 filling stations in 13 countries and a market share of 18% in the Danube region (2001: 9%). The volume of marketed gas rose to 8.4 bcm in 2004 (2001: 6.6 bcm). The market capitalization has risen to EUR 15 bn (2001: EUR 2.6 bn). The Group will build upon continued growth and boost its profitability potential. This means further expansion from mature into growing markets in order to increase its lead to other regional competitors. OMV CEO Ruttenstorfer added: "We will continue to pursue organic growth as well as growth through acquisitions. In Exploration and Production we will concentrate on international opportunities in six core regions, in R&M we will lead the market in the lucrative EU growth belt."
Best integrated midsize oil and gas company
OMV aims to be the best integrated midsize oil and gas company producing a quantity of oil and gas of 50% of its refinery capacity. In the gas business, OMV will produce more than one third of the gas volume sold by the company. In addition the company will keep secured access to petrochemical outlets and hold significant minority interest in international chemical business (Polyolefins, Melamine) with operations in Europe and Middle East, based on proprietary technology.
Refining and Marketing
In Refining and Marketing OMV will optimize its existing performance in the Danube home market with a daily refining capacity of 500,000 bbl/d. The Group will expand on its position as the leading supplier of refinery products in Central and Eastern Europe, building on two hubs – a Western hub with Schwechat, Burghausen and Bayernoil with an annual refining capacity of 18.4 mn t and an Eastern hub with Petrobrazi and Arpechim, with an annual refining capacity of 8 mn t. Significant investments will ensure that OMV refineries align to future market requirements, focusing especially on middle distillates. OMV will in addition realize opportunities in the EU accession area to acquire additional R&M opportunities with a refining capacity of up to 500,000 bbl/d. Moreover, OMV intends to strengthen its competitive position in petrochemicals.
In the retail business, OMV aims to lead the Danube region as the premium brand, leading in quality and further expanding its convenience business. OMV plans to increase its current market share of 18% to 20%. Half of the filling stations will be equipped with VIVA shops (2004: 32%). In addition OMV will raise the throughput of the filling stations from 2.6 mn liters per site in 2004 to 3 mn liters per site by 2010. OMV Deputy CEO Gerhard Roiss said: "Our market is the EU growth belt. This market with more than 200 mn consumers still holds significant growth potential and we are determined to realize opportunities there. In addition, we will continue to grow organically, optimizing our quality leadership through brand image, our high class convenience VIVA sites, and our high quality fuels and service."
Exploration and Production – becoming a significant upstream player
By 2010, OMV's Exploration and Production business will produce 500,000 boe/d in six core regions. A focus will be added on Russia in addition to the Danube and Adriatic, Northern Africa, the North Sea, the Middle East/Caspian and Australia/New Zealand as a new core region for OMV's E&P activities. OMV will target significant production growth in international business outside Austria and Romania, aiming at a reserve replacement ratio of 160%. Helmut Langanger, OMV Board member responsible for Exploration and Production said: "We set an ambitious target that will lead OMV into the upper third of the 2nd tier of international producers of oil and gas. The basis remains a stable production volume from Austria and Romania. We expect significant growth in North Africa, Middle East and Caspian and in the North Sea / Atlantic Margin, a material entry position in Russia and a valuable contribution from our New Zealand projects."
Gas - international gas business up and running by 2010
OMV is set to meet the challenges of a growing gas market and intends to make full use of the rising gas demand in Central and Eastern Europe. OMV will therefore build upon an international gas business and expand its gas marketing volumes to 20 bcm per year. OMV will also realize opportunities to further diversify its gas supply. OMV will focus on the realization of the Nabucco project to deliver gas to its Baumgarten hub and further to Western Europe. Moreover, OMV will develop LNG projects in order to market gas in the Adriatic sales regions. OMV intends to undertake a feasibility study for an LNG Terminal in the Adriatic region with one or more international experienced partners.
Petrom with new targets for 2010
Petrom, South Eastern Europe's leading producer of oil and gas, also sets new targets for the company's growth to 2010. Petrom aims for a stable oil and gas production volume of 210,000 boe per day in Romania until 2010. In addition, the Caspian region should be developed into a core region, the reserve replacement ratio should rise to 70% by 2010.
The company plans to raise its refinery utilization to 95% (2004: 75%) by 2010 and will comply with EU product quality by the end of 2007. In addition, more than 250 new standard PetromV filling stations will be built by 2010. Moreover, the company will achieve more than 30% market coverage (2004: 26%). In the Gas business, Petrom will increase its gas marketing volume to over 7 bcm in Romania with a market share of more than 35%.
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