OMV to Hit 320,000 BPD in 2014 after Recent Acquisitions

Austria's OMV said Thursday that, following the recent closure of its acquisition of offshore assets from Statoil, it expects to see its production increase to between 320,000 and 340,000 barrels of oil equivalent next year. In 2016, the firm expects to see approximately 400,000 boepd.

Reporting its results for the third quarter of 2013, OMV said that the acquired portfolio would also enable it to achieve a three-year average reserve replacement rate in excess of 100 percent by 2016. OMV announced on Nov 1 that it had closed the acquisition from Statoil of four fields on the Norwegian and UK continental shelves, including 19 percent of the producing Gullfaks field, 24 percent of the Gudrun field, 30 percent of the Rosebank field and 5.88 percent of the Schiehallion field.

The firm added that average group capital expenditure for the 2014-to-2016 period is expected to increase to $5.3 billion per annum, with roughly 80 percent of this being directed towards exploration and production. Assuming market conditions similar to now, OMV said its investment program is expected to be funded by operating cash flow and planned divestments.

However, OMV also reported that its average production for 2013 is now expected to be somewhat below that of 2012. Security issues and association production downtime have had a significant negative impact on 3Q 2013 production, it said, pointing out that in Yemen the security situation "remains volatile" with regular pipeline attacks and that the situation in both territories remains difficult to predict.

During the third quarter, OMV's hydrocarbon production averaged 297,000 boepd compared with 309,000 boepd in 3Q 2012.

The company also highlighted its Wisting discovery – of up to 164 million barrels of recoverable oil – in the Barents Sea that it first announced on September 6, along with its investments in the Edvard Grieg and Aasta Hansteen projects on the Norwegian Continental Shelf. In Romania, the firm plans a new drilling campaign in mid-2014 following the interpretation of data from a 3D seismic survey over the Neptun Block.

In Pakistan, OMV's Latif field development is complete and expected to come on stream during the fourth quarter of this year. In Tunisia, the final investment decision for the firm's Nawara gas field development is currently planned for 4Q 2013.


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