Austrian oil and gas producer OMV has reported that its hydrocarbon output averaged 486,000 barrels of oil equivalent per day in 2021, some 23,000 boepd higher than the previous year, boosted by production from Libya and the United Arab Emirates.

The commissioning of a new natural gas field in Tunisia provided another contribution to the output, according to OMV.

Production of gas and condensate at a joint venture in Russia between OMV and the country’s gas monopoly Gazprom improved due to the installation of new compressors and the restoration of throughput capacity of an export pipeline from West Siberian fields.

The company reported successful drilling and development activities in Malaysia, New Zealand and Norway, and improvement in reservoir performance in Norway, Romania and the UAE, but replaced just 77% of its proved reserves last year.

For 2022, OMV expects its total production to average 470,000 boepd, due to the natural decline at older legacy assets mainly in Romania and Austria.

Inflationary pressures

Upstream spending for 2022 is pegged at €1.3 billion (US$1.49 billion) most of which is allocated for ongoing greenfield and brownfields projects in Romania, Malaysia and New Zealand.

A plan to commercialise gas reserves at the Neptun Deep discovery in the Black Sea is awaiting of legislation in Romania, with tenders for engineering, procurement and construction contracts on hold until the project is sanctioned.

“This is the only area where we could see potential impact” from inflation and rising costs, according to OMV chief financial officer Reinhard Florey.

With 2021 described by company top executives as a “record year”, OMV total revenues doubled to more than €37 billion.

Fourth quarter revenue hit €14 billion, compared to €9 billion in the third quarter of 2021.

Net income attributable to shareholders reached €2.1 billion in 2021 against €1.3 billion in 2020.

Pro Nord Stream 2

Addressing the quarterly earnings conference call, OMV chief executive Alfred Stern expressed the opinion that the Gazprom-owned Nord Stream 2 subsea pipeline is needed for OMV and Austria.

He was responding to questions about the apparent shift in German politics towards imposing sanctions against the project in the event of Russian military incursion into Ukraine.

Prior to the Ukraine crisis, the German market regulator was expected to proceed with the certification of Nord Stream 2 to permit the pipeline to start operations in the second half of this year.

Gazprom has been blamed for restricting gas to Europe via established transit routes through Poland and Ukraine, even as wholesale gas price surged to record levels .

Gazprom has strongly denied suggestions it is trying to force European Union nations to switch to using the new pipeline.

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