OMV Modernizes Austria's Oil & Gas Production
OMV will be investing approximately EUR 120 mn by 2009 in the reconstruction and development of the production infrastructure of its Austrian production in the Vienna basin within the modernization project "Matzen Neu" and the field development "Ebenthal Tief". The project "Matzen Neu" includes the construction of a new central production facility and the renewal and optimization of the pipeline network encompassing approximately 60 km. With "Matzen Neu" and the field development "Ebenthal Tief" OMV is taking an important step in securing domestic gas production in the long term and is strengthening Austria's security of supply. In 2006, domestic oil and gas production amounted to 14 mn boe. By 2010, OMV aims at increasing this by 25%.
The Vienna basin, in which OMV has produced oil and gas for more than 50 years, is being modernized: within the next three years, approximately EUR 120 mn are being invested in the reconstruction of the infrastructure of all Austrian exploration and production activities, equipping it with state-of-the-art technology and expanding it. Reinhart Samhaber, managing director of OMV Austria Exploration & Production GmbH, stated: "The project "Matzen Neu" is the biggest infrastructure project of OMV Austria so far. We are preparing for the coming decades, in order to be able to continue to make an important contribution to OMV's production of oil and gas."
Project "Matzen Neu"
The project "Matzen Neu", which is initiating total investments amounting to approximately EUR 70 mn, is modernizing the infrastructure of the oil field in Matzen. The project, located approximately 20 km from Vienna, includes the construction of a new, central production facility, which is replacing 12 existing stations and will simplify technical procedures considerably. The existing production stations will be adapted into gauging stations, serving for the collection, volumetric flow measurement and transmission of the oil produced. The 60 km long pipeline necessary for this is also being renewed and optimized. The work in Central Europe's largest connected oil field is expected to be completed by mid 2009.
Field development "Ebenthal Tief"
The gas field "Ebenthal Tief", located approximately 30 km northeast of Vienna, was discovered in 2005. The field development includes pipeline construction in order to connect the gas field to the 16 km distant compressor station in Auersthal, which will be extended. The investments including the drillings will amount to approximately EUR 50 mn, construction will be completed by mid 2008. OMV anticipates that the development of the "Ebenthal Tief" will create additional reserves of approximately 1.5 bcm.
Increase in production by 2010
The modernization of the infrastructure in the Vienna basin and the development of the gas field "Ebenthal Tief" are in line with OMV's strategy for Austria, which aims at increasing domestic production by 25% by 2010. This amounts to an increase of the current production levels of approximately 39,000 boe/d to approximately 50,000 boe/d.
Balanced international E&P portfolio
OMV owns a balanced international portfolio in 20 countries organized around six core regions, namely the Danube and Adriatic region, Northern Africa, North-West Europe, the Middle East, Australia/New Zealand and Russia/Caspian. OMV's daily production volume is approximately 324,000 boe/d and the company's reserves are approximately 1.3 bn boe.
Stable oil and gas production in Austria at a high level
Thanks to OMV expertise, the high production level in Austria of approximately 14 mn boe (approximately 40,000 boe/d) was maintained in 2006, as it was in the previous three years. This corresponds with the production levels of 1980. Of the 14 mn boe produced last year half was crude oil and NGL (around 860,000 t) and half gas (1.2 bcm). These quantities correspond respectively to 10% and 13% of annual Austrian demand. OMV accounted for approximately 90% of the total domestic production of crude oil and around 70% of gas extraction. OMV now has more than 50 important active production fields in the Weinviertel, where mineral resources are pumped out of the ground by around 830 oil wells and 130 gas wells.
OMV's exploration and production activities in Austria are concentrated in the Vienna basin in the Weinviertel region of Lower Austria and encompass an area of more than 5,000 km². The group has 760 employees in the Austrian E&P business. With exploration expenditures and investments of approximately EUR 250 mn in 2007, OMV is the biggest investor and employer in the region. To date, more than 1,700 km² have been explored with 3D seismic technology. This program has included drilling more than 150 predominately successful wells since 1995, 10 of these wells (production wells and exploration wells) were drilled in the year 2006. A total of approximately 24,500 meters were drilled. From April 2007, the drilling activity will be intensified through a third drill unit.
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