OMV cuts Outlook on Libya, Yemen Security

Austrian oil and gas group OMV has said its production level in 2013 is now expected to be somewhat below 2012. In Libya and Yemen, security issues and associated production stops have had a significant negative impact on Q3/13 production.

OMV's chief executive told Reuters last month that the company was committed to Libya, which normally accounts for about 10 percent of its total production, despite the abandoning of projects there by some U.S. majors.

Gerhard Roiss (pictured), CEO of OMV, said today:

In the first nine months of this year, we have substantially enhanced our upstream portfolio. The acquisition from Statoil of a portfolio of offshore assets lays the foundation for achieving our key strategic targets for 2016, i.e. delivering a production of around 400 kboe/d and a three-year average reserve replacement rate of 100%.

"Proceeds generated through working capital reductions and disposals from the downstream business have enabled us to largely fund this transaction through cash generation. Our E&P portfolio was further enlarged through the acquisition of an exploration block in Madagascar, while our development pipeline was strengthened by discoveries in Norway, Pakistan and Libya.

(Source: OMV, Reuters)

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