How big the cut in OMV Petrom investments?
OMV Petrom is cutting down investments scheduled for 2015 from EUR 800 million - EUR 1.1 billion by 20-35% due to fall in oil prices worldwide. Of the total volume of investments planned for this year, about 85% will focus on exploration and production projects. “Given the volatile environment and the likely persistence of deteriorated market conditions, we are cutting our investment plans for 2015 and we are increasing our cost optimization programs, while preserving our projects with growth potential in the Black Sea,” Mariana Gheorghe, OMV Petrom CEO, says in a release.
OMV Petrom investments last year totalled RON 6.23 billion (EUR 1.4 billion) and in 2013 about RON 5.3 billion. OMV Petrom in 2014 recorded a net profit of RON 2.1 billion, less than half as compared to 2013, due to lower oil prices and sales down 11 % for the entire year. OMV Petrom sales fell last year to RON 21.5 billion, from RON 24.1 billion in 2013. The Petrom oil and gas production amounted to 65.82 million boe, 1 percent lower than in 2013 due to lower production in Kazakhstan. In Romania, the total production of oil, gas and LNG reached 62.57 million boe, slightly up. Domestic oil production was of 27.98 million boe, 2 percent lower than in 2013, due to planned capital repair works and to weather conditions. Gas production was of 34.58 million boe, 2 percent higher than in 2013. Oil and gas production in Kazakhstan fell by 21 percent to 3.25 million boe, due to technical constraints.