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 kboe/d, the production cost stood at USD 6.7/boe, and the clean Operating Result increased substantially.
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2021 |
2020 |
Δ |
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Clean Operating Result |
in EUR mn |
2,837 |
145 |
n.m. |
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Special items |
in EUR mn |
(398) |
(1,282) |
69% |
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Operating Result |
in EUR mn |
2,439 |
(1,137) |
n.m. |
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Capital expenditure1 |
in EUR mn |
1,173 |
1,090 |
8% |
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Exploration expenditure |
in EUR mn |
210 |
227 |
(8)% |
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Exploration expenses |
in EUR mn |
281 |
896 |
(69)% |
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Production cost |
in USD/boe |
6.67 |
6.58 |
1% |
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Total hydrocarbon production |
in kboe/d |
486 |
463 |
5% |
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Total hydrocarbon sales volumes |
in kboe/d |
462 |
439 |
5% |
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Proved reserves as of December 31 |
in mn boe |
1,295 |
1,337 |
(3)% |
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Average Brent price |
in USD/bbl |
70.91 |
41.84 |
69% |
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Average realized crude oil price2 |
in USD/bbl |
65.60 |
37.97 |
73% |
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Average realized natural gas price2,3 |
in EUR/MWh |
16.49 |
8.94 |
84% |
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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 special items amounted to EUR (398) mn 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/bbl, a substantial growth of 69%. The Group’s average realized crude price improved by 73%. The average realized gas price in EUR/MWh 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.
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2021 |
2020 |
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Oil and NGL |
Natural gas1 |
Total |
Oil and NGL |
Natural gas1 |
Total |
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in mn bbl |
in bcf |
in mn boe |
in mn boe |
in mn bbl |
in bcf |
in mn boe |
in mn boe |
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Romania2 |
22.4 |
129.9 |
24.0 |
46.4 |
23.4 |
146.5 |
27.1 |
50.5 |
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Austria |
3.6 |
20.6 |
3.4 |
7.0 |
3.8 |
24.9 |
4.2 |
8.0 |
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Kazakhstan2 |
0.7 |
0.7 |
0.1 |
0.8 |
2.1 |
2.0 |
0.3 |
2.5 |
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Norway |
15.3 |
102.3 |
17.0 |
32.3 |
15.1 |
97.5 |
16.2 |
31.3 |
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Libya |
12.0 |
– |
– |
12.0 |
2.4 |
– |
– |
2.4 |
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Tunisia |
0.9 |
17.3 |
2.9 |
3.8 |
0.6 |
7.0 |
1.2 |
1.7 |
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Yemen |
1.1 |
– |
– |
1.1 |
1.3 |
– |
– |
1.3 |
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Kurdistan Region of Iraq |
1.0 |
15.6 |
2.6 |
3.6 |
1.0 |
14.6 |
2.4 |
3.4 |
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United Arab Emirates |
10.8 |
– |
– |
10.8 |
8.4 |
– |
– |
8.4 |
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New Zealand |
3.5 |
51.8 |
8.6 |
12.1 |
3.8 |
57.7 |
9.6 |
13.4 |
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Malaysia2 |
1.7 |
64.5 |
10.8 |
12.4 |
2.7 |
53.3 |
8.9 |
11.6 |
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Russia |
– |
210.6 |
35.1 |
35.1 |
– |
208.4 |
34.7 |
34.7 |
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Total |
72.9 |
613.2 |
104.6 |
177.5 |
64.7 |
612.0 |
104.7 |
169.4 |
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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 (RRR) 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 boe), impacted by the divestments in Kazakhstan, Romania, and Malaysia.