Maximising energy potential OMV Group

MAXIMISING ENERGY POTENTIAL

The OMV Group is based in Austria and is the foremost energy producer in central and south-eastern Europe. Philip Yorke looks at the strategy behind the group’s dramatic growth and the latest additions to its production portfolio. The report also covers the launch of the company’s latest ‘HVO Biocomponent’ premium diesel fuel.

With Group sales of more than €23 billion and a workforce of around 32,000 employees, OMV Aktiegesellschaft is one of Austria’s largest listed industrial companies. As the leading energy group in the European growth belt, OMV is active in refining and marketing its products in 12 countries. In exploration and production the Group is operational in 17 countries and on four continents. In the gas and power sector, OMV sells approximately 13 bcm (billion cubic metres) of gas per year. The company’s Central European Gas Hub generates over 23 bcm in annual trading volume, making it one of the most important gas hubs in central Europe.

The Austrian OMV Group has oil and gas reserves of around 2bn boe (barrels of oil equivalent), with daily production of over 316.000 boe achieved in the third quarter of 2010 and an annual refining capacity of approximately 26mn tonnes. In addition OMV now operates 2310 filling stations.

Under the company’s dedicated ‘3plus’ business strategy, OMV combines the strengths of its E&P (Exploration & Production), G&P (Gas & Power) and R&M (Research & Marketing) business units to ensure that it provides the optimum supply service to its three core markets of central and eastern europe, south-east Europe and Turkey.

Success in Australia

On 13 April 2011, OMV announced the discovery of significant gas reserves in Australia, after its successful exploration of the Zola-1 well, located 100 km from the western Australian coast. The discovery well Zola-1 and the subsequently drilled ‘sidetrack’ appraisal well, Zola-1S/T, confirmed the existence of sandstone layers with 130m of net gas pay in an area south of the giant Australian Gorgon gas field.

Jaap Huijskes, member of the OMV Executive Board responsible for exploration and production said, “Zola-1 is one of OMV’s biggest gas discoveries and is the result of a successful and safely carried-out exploration and appraisal drilling campaign. We are very proud of OMV’s exploration activities in Australia, which have culminated in this significant discovery on the Northwest Shelf. The next step will be to further appraise the discovery, including the acquisition of a new, 3D seismic survey.”

OMV’s future growth is expected to come via new field developments, exploration and further international acquisitions. The com-

Afton Chemical

Afton Chemical is focussed on the development of world leading automotive performance additive solutions for diesel, gasoline or alternative fuels. Our aim is to help you meet your business goals, whether it be market share growth or premium product placement.

Our years of experience have not only enabled us to develop the best additive solutions, but also our own methodology to work with you in a unique way. We start by listening to your needs to understand your business and your markets. Then we tailor-make the kind of supply chain that suits your exact requirements, and recommend and help you implement the business model that allows you to achieve your goals. This is a continuous methodology, where we work in collaboration with you, as a genuine partner to your business.

To find out more visit us at:

www.aftonchemical.com

pany intends to grow its existing portfolio on a country-by-country basis and is looking to find new growth areas within the Caspian, Middle East and North Africa regions, where OMV can leverage its existing E&P exposure.

Furthermore, the Group has enhanced its investments in North Africa in Tunisia, where it has acquired 100 per cent of the issued share capital of Pioneer Natural Resources Tunisia Ltd and Pioneer Natural Resources Anaguid Ltd. This transaction adds immediate production potential and significant exploration and development prospects ‘upside’, in addition to substantial operational synergies alongside OMV’s existing Tunisian assets.

The dawn of a new fuel era

Since 26 April 2011 motorists in eight European countries have been able to benefit from OMV’s significant breakthrough in high-performance, low-emission diesel fuels, branded as OMV MaxxMotion. This all-new, premium fuel guarantees improved performance and lower fuel consumption. The fuel’s unique, highperformance additives and advanced HVO Biocomponent, sets new standards in fuel efficiency and sustainability.

In addition, engines will be given longterm protection against corrosion and the build-up of sediment and will therefore be guaranteed a longer service life. OVM’s much improved HVO Biocomponent has outstanding technical characteristics compared to the conventional FAME Biocomponent in use and reduces CO2 emissions by up to 42 per cent. This new brand will give OMV fuel dispensers a brand new look in time for summer motoring. The latest MaxxMotion fuel dispensers lead the way towards a new fuel era where improved engine performance and environmental sustainability work together for the benefit of everyone.

Harald Joichl,the head of OMV’s filling station business in Austria and Germany said, “We are particularly proud of the environmental friendliness of our new brand. Since the 1990s, OMV has played a pioneering role in the area of environmental standards. At that time we were the market leaders in the conversion to unleaded fuel. Now we are again marking the start of a new era”.

Tapping potential in key markets

OMV’s core markets include central and eastern Europe, south east Europe and Turkey, which together represent regions with a large energy requirement and a population exceeding 200 million people.

This growth belt offers an attractive market in which demand for natural gas, electricity and petroleum products is growing rapidly. OMV continues to develop the huge potential of these three key markets from its regional centres in Vienna, Bucharest and Istanbul, all of which offer an ideal base for tapping into existing wells and new ones, such as those in the Kurdistan region of Iraq.

In Romania the company produces large quantities of oil and natural gas together with Petrom, Romania’s leading oil and natural gas producer. The OMV Group acquired a 51 per cent stake in Petrom in 2004. n