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Results

Exploration & Production

In the Exploration & Production business segment, OMV delivered excellent performance while reshaping its portfolio in line with the focus on increasing the share of natural gas in production. Despite COVID-19-related restrictions, production reached 486 , the production cost stood at USD 6.7/, and the clean Operating Result increased substantially.

At a glance

 

 

 

 

 

 

 

2021

2020

Δ

Clean Operating Result

in EUR mn

2,837

145

n.m.

Special items

in EUR mn

(398)

(1,282)

69%

Operating Result

in EUR mn

2,439

(1,137)

n.m.

Capital expenditure1

in EUR mn

1,173

1,090

8%

Exploration expenditure

in EUR mn

210

227

(8)%

Exploration expenses

in EUR mn

281

896

(69)%

Production cost

in USD/boe

6.67

6.58

1%

 

 

 

 

 

Total hydrocarbon production

in kboe/d

486

463

5%

Total hydrocarbon sales volumes

in kboe/d

462

439

5%

Proved reserves as of December 31

in mn boe

1,295

1,337

(3)%

 

 

 

 

 

Average Brent price

in USD/bbl

70.91

41.84

69%

Average realized crude oil price2

in USD/bbl

65.60

37.97

73%

Average realized natural gas price2,3

in EUR/MWh

16.49

8.94

84%

1

Capital expenditure including acquisitions.

2

Average realized prices include hedging effects.

3

The average realized gas price is converted to MWh using a standardized calorific value across the portfolio of 10.8 MWh for 1,000 cubic meters of natural gas.

Financial performance

The clean Operating Result rose sharply from EUR 145 mn to EUR 2,837 mn in 2021. Exceptionally strong market effects of EUR 2,282 mn as a consequence of substantially better oil and gas prices were reinforced by very positive operational effects of EUR 507 mn. They could be achieved thanks to the return to full operations in Libya, revised OPEC quota restrictions in the United Arab Emirates, and the commissioning of a new natural gas field in Tunisia. Sales volumes followed the production development. Depreciation increased by EUR 97 mn in line with production increases.

Net amounted to EUR (398) in 2021 (2020: EUR (1,282) mn), which were mainly related to temporary hedging effects. While net special items in 2020 were mainly related to the impairments triggered by OMV’s revision of its long-term Brent crude oil price planning assumptions, the 2021 amount was impacted by the EUR (383) mn value adjustment of receivables connected to certain E&P assets. The Operating Result reached EUR 2,439 mn (2020: EUR (1,137) mn). Production cost excluding royalties was flat at USD 6.7/boe in 2021 (2020: USD 6.6/boe).

The total hydrocarbon production volume increased by 23 kboe/d to 486 kboe/d. Libyan production was at full capacity during almost the entire period, while it had been severely affected by a force majeure situation for most of the previous year. Output in the United Arab Emirates grew on the back of revised OPEC quota restrictions and in Tunisia after the commissioning of a new natural gas field. Natural decline in Romania and Austria, the full divestment of operations in Kazakhstan in May 2021, and lower natural gas extraction in New Zealand stifled production growth to some extent. Total hydrocarbon sales volumes rose to 462 kboe/d (2020: 439 kboe/d), following the production development.

In 2021, the average Brent price reached USD 70.9/, a substantial growth of 69%. The Group’s average realized crude price improved by 73%. The average realized gas price in EUR/ advanced by 84%.

Capital expenditure including capitalized E&A was raised to EUR 1,173 mn in 2021 (2020: EUR 1,090 mn), rebounding from the previous austerity-induced level. Organic capital expenditure was primarily directed at projects in Romania, Norway, and New Zealand. Exploration expenditure was EUR 210 mn in 2021, a reduction of 8% compared with 2020. It was mainly related to activities in Norway, Romania, and at SapuraOMV.

Production

 

 

 

 

 

 

 

 

 

 

2021

2020

 

Oil and NGL

Natural gas1

Total

Oil and NGL

Natural gas1

Total

 

in mn bbl

in bcf

in mn boe

in mn boe

in mn bbl

in bcf

in mn boe

in mn boe

Romania2

22.4

129.9

24.0

46.4

23.4

146.5

27.1

50.5

Austria

3.6

20.6

3.4

7.0

3.8

24.9

4.2

8.0

Kazakhstan2

0.7

0.7

0.1

0.8

2.1

2.0

0.3

2.5

Norway

15.3

102.3

17.0

32.3

15.1

97.5

16.2

31.3

Libya

12.0

12.0

2.4

2.4

Tunisia

0.9

17.3

2.9

3.8

0.6

7.0

1.2

1.7

Yemen

1.1

1.1

1.3

1.3

Kurdistan Region of Iraq

1.0

15.6

2.6

3.6

1.0

14.6

2.4

3.4

United Arab Emirates

10.8

10.8

8.4

8.4

New Zealand

3.5

51.8

8.6

12.1

3.8

57.7

9.6

13.4

Malaysia2

1.7

64.5

10.8

12.4

2.7

53.3

8.9

11.6

Russia

210.6

35.1

35.1

208.4

34.7

34.7

Total

72.9

613.2

104.6

177.5

64.7

612.0

104.7

169.4

1

To convert natural gas from cf to boe, the following conversion factor was applied in all countries: 1 boe = 6,000 cf. In Romania, the following factor was used: 1 boe = 5,400 cf.

2

The figures above include 100% of all fully consolidated companies.

Reserves development

Proved reserves (1P) as of December 31, 2021, decreased to 1,295 mn boe (thereof OMV Petrom: 419 mn boe), with a one-year Reserve Replacement Rate () of 77% in 2021 (2020: 102%). The three-year rolling average RRR is 105% (2020: 138%). Proved reserves were added through successful drilling and development activities in Malaysia, New Zealand, and Norway, and improvement in reservoir performance in Norway, Romania, and the United Arab Emirates. These additions were offset to some extent by divestments in Kazakhstan, Romania, and Malaysia. The improvement in global oil prices also had a positive impact on the proved reserves position as of the end of 2021. Proved and probable reserves (2P) decreased to 2,197 mn boe (thereof OMV Petrom: 680 mn ), impacted by the divestments in Kazakhstan, Romania, and Malaysia.

kboe/d
Thousand barrels of oil equivalent per day
boe
Barrel of oil equivalent
Special items
Special items are expenses and income reflected in the financial statements that are disclosed separately, as they are not part of underlying ordinary business operations. They are being disclosed separately in order to enable investors to better understand and evaluate OMV Group’s reported financial performance.
mn
Million
bbl
Barrel (1 barrel equals approximately 159 liters)
MWh
Megawatt hour
RRR
Reserve Replacement Rate; total changes in reserves excluding production, divided by total production
boe
Barrel of oil equivalent