OMV Sees Steady Production, Boosts Upstream Capex

Austria's OMV reported Tuesday that it expects its production for 2013 to be broadly similar to 2012, when it achieved 303,000 barrels of oil equivalent per day.

The firm also expects to increase capital spending on its exploration and production activities in 2013, with E&P capex representing approximately 70 percent of its overall group capex before acquisitions. A large part of this will be spent on its Edvard Grieg and Aasta Hansteen projects in Norway and for field redevelopments carried out by its Romanian subsidiary Petrom.

At the end of July, OMV said it was planning to recruit an additional 1,600 technical staff by 2016 as it expands its exploration and production activities.

In Romania OMV plans to begin a new drilling campaign on the Neptun block in late 2013/early 2014 now that it has completed a large 3D seismic data acquisition survey there.

The firm also reported that in Libya production levels have normalized after production interruptions that occurred during the first half of 2013, while its production in Yemen was stable during 2Q 2013 compared with the first quarter, although "the security situation remains uncertain". OMV noted that the Habban development in Yemen restared in April and is ongoing.

OMV said the Latif field development in Pakistan is expected to come on stream in 3Q 2013 while the Mehar project is expected to start production in 4Q 2013.

Final investment decisions for OMV's Nawara and Rosebank assets in Tunisia and the UK are expected in 4Q 2013 and 1Q 2014 respectively.


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