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 on four continents. In the gas and power sector, OMV sells approximately 13bcm (billion cubic metres) of gas per year. The company’s central European Gas Hub generates over 23bcm in annual trading volume, making it one of the most important gas hubs in central Europe.

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-eastern 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 100km 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 at the time: “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 North West Shelf. The next step will be to further appraise the

discovery, including the acquisition of a new, 3D seismic survey.”

OMV’s growth in the past couple of years has been coming via new field developments, exploration and further international acquisitions. The company is looking to grow its existing portfolio on a country per country basis and is hoping to find new growth areas within the Caspian, Middle East and North Africa Regions, where it can leverage its existing E&P exposure.

Furthermore, the group has enhanced its investments in North Africa in Tunisia, where it acquired 100 per cent of the issued share capital of Pioneer Natural Resources Tunisia Ltd and Pioneer Natural Resources Anaguid Ltd. This transaction added 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, high-performance additives and advanced HVO Biocomponent sets new standards in fuel efficiency and sustainability.

In addition, engines will be given long-term 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. 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.

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