Austria’s OMV AG says it is reducing its annual investments for 2015-17 to a range of €2.5-3 billion. Before the drop in oil prices, the company had planned to spend €3.9 billion each year during 2014-16.
“There has been a seismic shift for the industry in recent months,” said Gerhard Roiss, OMV chief executive officer. The company cited a 58% decline in the Brent oil price since mid-2014.
Roiss said OMV is “reducing the speed” of implementing certain projects, which will lead to a delay in reaching its previously stated 2016 production target of 400,000 boe/d.
Oil and gas production in the fourth quarter rose to 318,000 boe/d, a 15% increase against fourth quarter 2013 (OGJ Online, Dec. 1, 2014).
Activities in Norway are the most important driver behind the rise in production, the company said.
OMV also applied €700 million in asset impairments to the fourth quarter, relating primarily to its Petrol Ofisi in Turkey and a natural gas-fired electric power plant in Romania.