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Results

Oil and Gas Reserve Estimation and Disclosures (unaudited)

The following tables provide supplementary information in respect of the Group’s oil and gas activities. In the absence of detailed disclosure rules in this area under , the Group has elected to voluntarily disclose the data that would have been required under the ASC 932 as if it was reporting under US GAAP.

To the extent that information refers to financial statements data, the information is based on the primary financial statements (IFRS financial statements).

The regional structure is presented below*Regions listed in the Director’s Report ‘Central and Eastern Europe’ (includes Romania and Black Sea as well as Austria) and ‘Asia-Pacific’ (includes New Zea-land and Australia as well as Malaysia) are split further in this disclosure to provide the information in a more detailed manner. :

Romania and Black Sea

Bulgaria, Kazakhstan (until May 2021) and Romania

Austria

Austria

Russia

Russia

North Sea

Norway

Middle East and Africa

Iran (evaluation on hold), Kurdistan Region of Iraq, Libya, Tunisia, United Arab Emirates, Yemen, Madagascar (until 2019)

New Zealand and Australia

Australia and New Zealand

Malaysia

SapuraOMV*Includes not only Malaysia but also SapuraOMV subsidiaries in New Zealand, Australia and Mexico.

Acquisitions

There were no major acquisitions during 2021 and 2020.

On January 31, 2019, OMV acquired a 50% stake of the issued share capital in SapuraOMV Upstream Sdn. Bhd. As OMV has the decision power over relevant activities, the new entity and its subsidiaries are fully consolidated. Besides future growth in daily production in Malaysian offshore gas fields, this transaction gives OMV access to exploration blocks in New Zealand, Australia and Mexico. SapuraOMV Upstream Sdn. Bdn. and its subsidiaries are depicted in the Malaysia region in the upcoming tables.

Disposals

As per May 14, 2021, OMV Petrom finalized the sale of its 100% share in Kom-Munai LLP and Tasbulat Oil Corporation LLP (both based in Aktau, Kazakhstan).

On August 1, 2021, SapuraOMV Upstream Sdn. Bhd. sold its share in SapuraOMV Upstream (PM) Inc., which held interests in various producing assets located offshore Peninsular Malaysia.

There were no major disposals during 2020 and 2019.

Non-controlling interest

As OMV holds 51% of OMV Petrom, it is fully consolidated; figures therefore include 100% of OMV Petrom assets and results.

OMV has a share of 50% in SapuraOMV and it is fully consolidated; figures therefore include 100% of SapuraOMV assets and results.

Equity-accounted investments

OMV holds a 10% interest in Petroleum Company Limited (Middle East and Africa region).

OMV has a 24.99% interest in OJSC Severneftegazprom (Russia region).

The disclosures of equity-accounted investments in below tables represent the interest of OMV in the companies.

The subsequent tables may contain rounding differences.

Tables

a) Capitalized costs

Capitalized costs represent the sum of capitalized oil and gas assets, including other intangible assets and property, plant and equipment such as land, plant and machinery, concessions, licenses and rights.

Capitalized costs – subsidiaries

In EUR mn

 

 

 

 

2021

2020

2019

Unproved oil and gas properties

2,137

2,461

3,211

Proved oil and gas properties

27,611

26,988

26,830

Total

29,749

29,449

30,041

Accumulated depreciation

(18,136)

(17,117)

(15,484)

Net capitalized costs

11,613

12,333

14,557

Capitalized costs – equity-accounted investments

In EUR mn

 

 

 

 

2021

2020

2019

Unproved oil and gas properties

164

154

173

Proved oil and gas properties

477

346

315

Total

641

501

489

Accumulated depreciation

(99)

(76)

(67)

Net capitalized costs

542

424

421

b) Costs incurred

Costs incurred include all costs, capitalized or expensed, during the year in the Group’s oil and gas property acquisition, exploration and development activities.

Costs incurred

In EUR mn

 

 

 

 

 

 

 

 

 

Romania and Black Sea

Austria

Russia

North Sea

Middle East and Africa

New Zealand and Australia

Malaysia

Total

 

 

 

 

 

 

 

 

 

 

2021

Subsidiaries

 

 

 

 

 

 

 

 

Acquisition of proved properties

Acquisition of unproved properties

1

0

1

3

Exploration costs

41

6

81

25

26

30

210

Development costs

265

38

243

165

102

39

852

Costs incurred

307

44

324

191

128

70

1,065

Equity-accounted investments

62

21

83

 

 

 

 

 

 

 

 

 

 

2020

Subsidiaries

 

 

 

 

 

 

 

 

Acquisition of proved properties

Acquisition of unproved properties

Exploration costs

51

25

55

17

46

32

227

Development costs

330

20

187

163

60

19

778

Costs incurred

380

45

242

180

106

51

1,005

Equity-accounted investments

55

7

62

 

 

 

 

 

 

 

 

 

 

2019

Subsidiaries

 

 

 

 

 

 

 

 

Acquisition of proved properties

1

1

604

605

Acquisition of unproved properties

12

683

695

Exploration costs

93

53

121

32

40

20

360

Development costs

411

58

174

222

65

90

1,021

Costs incurred

504

112

296

266

105

1,398

2,681

Equity-accounted investments

30

15

45

c) Results of operations of oil and gas producing activities

The following tables represent only those revenues and expenses which occur directly in connection with OMV´s oil and gas producing operations. The results of oil and gas activities should not be equated to Exploration & Production since interest costs, general corporate overhead costs and other costs are not allocated. Income taxes are hypothetically calculated, based on the statutory tax rates and the effect of tax credits on investments and loss carryforwards.

Results of operations of oil and gas producing activities

In EUR mn

 

 

 

 

 

 

 

 

 

Romania and Black Sea

Austria

Russia

North Sea

Middle East and Africa

New Zealand and Australia

Malaysia

Total

 

 

 

 

 

 

 

 

 

 

2021

Subsidiaries

 

 

 

 

 

 

 

 

Sales to unaffiliated parties1

22

(649)

562

876

556

279

239

1,884

Intercompany sales

1,845

432

1,345

1,018

122

4,762

 

1,868

(218)

562

2,221

1,574

400

239

6,646

Production costs

(477)

(78)

(144)

(146)

(81)

(24)

(950)

Royalties

(404)

(66)

(135)

(39)

(13)

(658)

Exploration expenses2

(43)

(5)

(108)

(43)

(18)

(65)

(281)

Depreciation, amortization, impairments and write-ups

(499)

(102)

(70)

(381)

(246)

(127)

(101)

(1,526)

Other costs3

(70)

(14)

(329)

(132)

(25)

(5)

(21)

(597)

 

(1,493)

(265)

(399)

(766)

(596)

(270)

(223)

(4,012)

Results before income taxes

375

(483)

163

1,455

979

130

15

2,635

Income taxes4

(59)

121

(27)

(981)

(750)

(38)

(6)

(1,740)

Results from oil and gas production

316

(362)

135

475

229

92

10

895

Results of equity-accounted investments

24

31

55

 

 

 

 

 

 

 

 

 

 

2020

Subsidiaries

 

 

 

 

 

 

 

 

Sales to unaffiliated parties1

57

(25)

389

569

102

228

209

1,529

Intercompany sales

1,203

186

269

365

102

2,125

 

1,260

161

389

838

467

330

209

3,654

Production costs

(472)

(77)

(144)

(125)

(77)

(24)

(920)

Royalties

(180)

(40)

(67)

(34)

(4)

(325)

Exploration expenses2

(179)

(96)

(56)

(298)

(201)

(67)

(896)

Depreciation, amortization, impairments and write-ups

(538)

(223)

(74)

(309)

(226)

(384)

(126)

(1,880)

Other costs3

(63)

(16)

(343)

(135)

(14)

(23)

(26)

(619)

 

(1,432)

(452)

(417)

(644)

(730)

(719)

(246)

(4,641)

Results before income taxes

(172)

(291)

(28)

194

(263)

(389)

(38)

(987)

Income taxes4

25

107

5

(122)

118

107

(16)

224

Results from oil and gas production

(148)

(184)

(23)

72

(145)

(282)

(53)

(763)

Results of equity-accounted investments

15

16

31

 

 

 

 

 

 

 

 

 

 

2019

Subsidiaries

 

 

 

 

 

 

 

 

Sales to unaffiliated parties1

94

19

550

891

527

335

171

2,586

Intercompany sales

1,909

324

379

822

191

3,624

 

2,002

343

550

1,270

1,348

526

171

6,210

Production costs

(500)

(82)

(158)

(124)

(98)

(30)

(991)

Royalties

(250)

(62)

(103)

(65)

(16)

(496)

Exploration expenses2

(53)

(45)

(73)

(16)

(24)

(18)

(229)

Depreciation, amortization, impairments and write-ups

(553)

(119)

(91)

(414)

(233)

(199)

(73)

(1,681)

Other costs3

(93)

(29)

(429)

(132)

(45)

(20)

(13)

(761)

 

(1,449)

(336)

(520)

(777)

(520)

(407)

(149)

(4,159)

Results before income taxes

553

7

30

493

828

119

21

2,051

Income taxes4

(88)

1

(5)

(402)

(675)

(25)

(28)

(1,222)

Results from oil and gas production

465

8

24

91

153

94

(7)

829

Results of equity-accounted investments

34

11

45

1

Includes hedging effects; Austria Region includes hedging effects of centrally managed derivatives (2021: EUR (675) mn, 2020: EUR (37) mn, 2019: EUR 2 mn).

2

Including impairment losses related to exploration&appraisal

3

Includes inventory changes

4

Income taxes in North Sea and Middle East and Africa include corporation tax and special petroleum tax.

d) Oil and gas reserve quantities

Proved reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain. Proved oil and gas reserves were estimated based on a 12-month average price, unless prices are defined by contractual arrangements.

Proved developed reserves are those proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods, or in which the costs of the required equipment are relatively minor compared with the cost of a new well and through installed extraction equipment and infrastructure operational at the time of the reserves estimate. It should be reasonably certain that the required future expenditure will be made to safeguard existing equipment within the current budget.

Proved undeveloped reserves are those proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion or substantial new investment is required in order to safeguard or replace ageing facilities.

Crude oil and NGL

in mn bbl

 

 

 

 

 

 

 

 

 

Romania and Black Sea

Austria

Russia

North Sea

Middle East and Africa

New Zealand and Australia

Malaysia

Total

 

Proved developed and undeveloped reserves – Subsidiaries

January 1, 2019

324.4

37.0

48.4

208.3

10.2

628.3

Revisions of previous estimates

20.2

2.1

13.3

26.7

6.0

68.4

Purchases

9.5

9.5

Disposal

(3.4)

(3.4)

Extensions and discoveries

0.1

6.0

6.1

Production

(26.1)

(4.0)

(16.6)

(21.8)

(4.6)

(2.1)

(75.2)

December 31, 2019

315.2

35.2

51.1

213.2

11.6

7.4

633.7

Revisions of previous estimates

8.6

2.7

8.5

69.7

0.2

1.0

90.7

Purchases

Disposal

Extensions and discoveries

0.5

0.5

Production

(25.5)

(3.8)

(15.1)

(12.8)

(3.8)

(2.7)

(63.7)

December 31, 2020

298.8

34.0

44.5

270.2

8.0

5.7

661.2

 

 

 

 

 

 

 

 

 

Revisions of previous estimates

4.2

1.0

17.2

30.3

7.6

4.9

65.2

Purchases

Disposal

(21.4)

(2.4)

(23.8)

Extensions and discoveries

0.3

0.8

1.0

Production

(23.0)

(3.6)

(15.3)

(24.8)

(3.5)

(1.7)

(71.9)

December 31, 2021

258.8

31.4

46.4

275.7

12.9

6.5

631.7

 

 

 

 

 

 

 

 

 

Proved developed and undeveloped reserves – Equity-accounted investments

December 31, 2019

15.3

15.3

December 31, 2020

18.4

18.4

December 31, 2021

17.5

17.5

 

 

 

 

 

 

 

 

 

Proved developed reserves – Subsidiaries

December 31, 2019

287.2

35.2

37.2

179.7

7.8

5.7

552.7

December 31, 2020

273.1

33.9

32.7

172.7

5.6

5.7

523.8

December 31, 2021

234.2

31.4

40.7

189.2

6.0

1.6

503.2

 

 

 

 

 

 

 

 

 

Proved developed reserves – Equity-accounted investments

December 31, 2019

14.9

14.9

December 31, 2020

15.7

15.7

December 31, 2021

14.7

14.7

Gas

In mn bcf

 

 

 

 

 

 

 

 

 

Romania and Black Sea

Austria

Russia

North Sea

Middle East and Africa

New Zealand and Australia

Malaysia

Total

 

 

 

 

 

 

 

 

 

Proved developed and undeveloped reserves – Subsidiaries

January 1, 2019

1,124.7

196.8

429.4

55.5

235.6

2,041.9

Revisions of previous estimates

58.2

10.1

76.0

9.6

145.4

299.3

Purchases

351.2

351.2

Disposals

(6.3)

(6.3)

Extensions and discoveries

2.2

7.4

9.5

Production

(158.0)

(29.2)

(90.0)

(3.2)

(65.2)

(15.5)

(360.9)

December 31, 20191

1,020.7

177.8

422.8

61.9

315.8

335.7

2,334.7

Revisions of previous estimates

61.3

2.5

58.3

27.5

(62.8)

93.9

180.7

Purchases

Disposals

Extensions and discoveries

7.2

7.2

Production

(148.6)

(24.9)

(97.5)

(7.0)

(57.7)

(53.3)

(389.0)

December 31, 20201

940.7

155.3

383.6

82.4

195.3

376.3

2,133.6

 

 

 

 

 

 

 

 

 

Revisions of previous estimates

76.2

17.7

7.8

80.7

115.3

212.0

509.6

Purchases

Disposals

(22.3)

(9.1)

(31.5)

Extensions and discoveries

1.5

15.4

17.0

Production

(130.6)

(20.6)

(102.3)

(17.3)

(51.8)

(64.5)

(387.0)

December 31, 20211

865.5

152.4

289.2

145.8

274.2

514.7

2,241.7

 

 

 

 

 

 

 

 

 

Proved developed and undeveloped reserves – Equity-accounted investments

December 31, 2019

1,376.8

277.3

1,654.1

December 31, 2020

1,321.0

383.8

1,704.8

December 31, 2021

1,167.1

369.2

1,536.4

 

 

 

 

 

 

 

 

 

Proved developed reserves – Subsidiaries

December 31, 2019

923.0

110.2

407.8

57.4

203.2

124.0

1,825.5

December 31, 2020

851.9

76.1

335.7

55.2

143.5

376.3

1,838.7

December 31, 2021

779.5

84.0

287.0

62.5

115.4

291.9

1,620.2

 

 

 

 

 

 

 

 

 

Proved developed reserves – Equity-accounted investments

December 31, 2019

880.2

262.9

1,143.1

December 31, 2020

1,003.1

293.5

1,296.6

December 31, 2021

1,090.7

278.9

1,369.7

1

2021: Including approximately 67.6 bcf of cushion gas held in storage reservoirs
2020: Including approximately 67.6 bcf of cushion gas held in storage reservoirs
2019: Including approximately 67.6 bcf of cushion gas held in storage reservoirs

e) Standardized measure of discounted future net cash flows

The future net cash flow information is based on the assumption that the prevailing economic and operating conditions will persist throughout the time during which proved reserves will be produced. Neither the effects of future pricing changes nor expected changes in technology and operating practices are considered.

Future cash inflows represent the revenues received from production volumes, including cushion gas held in storage reservoirs, assuming that the future production is sold at prices used in estimating year-end quantities of proved reserves (12 months average price). Future production costs include the estimated expenditures for production of the proved reserves plus any production taxes without consideration of future inflation. Future decommissioning costs comprise the net costs associated with decommissioning wells and facilities. Future development costs include the estimated costs of development drilling and installation of production facilities. For all three categories year-end costs without consideration of inflation are assumed. Future income tax payments are calculated on the basis of the income tax rate applicable in each of the countries in which the Group operates. The present cash value results from the discounting of the future net cash flow at a discount rate of 10% per year. The standardized measure does not purport to be an estimate of the fair value of the Group’s proven reserves. An estimate of fair value would also take into account, amongst many other factors, the expected recovery of reserves in excess of proved reserves, anticipated changes in future prices and costs as well as a discount factor representative of the risks inherent in the production of oil and gas.

Standardized measure of discounted future net cash flows

In EUR mn

 

 

 

 

 

 

 

 

 

Subsidiaries and equity-accounted investments

 

 

Romania and Black Sea

Austria

Russia

North Sea

Middle East and Africa

New Zealand and Australia

Malaysia

Total

 

 

 

 

 

 

 

 

 

 

2021

Subsidiaries

 

 

 

 

 

 

 

 

Future cash inflows

17,585

3,336

2,625

5,608

16,545

1,905

1,433

49,038

Future production and decommissioning costs

(9,221)

(1,612)

(2,148)

(2,293)

(5,419)

(1,647)

(490)

(22,831)

Future development costs

(1,422)

(246)

(281)

(776)

(380)

(257)

(3,362)

Future net cash flows, before income taxes

6,942

1,479

477

3,034

10,350

(122)

685

22,845

Future income taxes

(577)

(264)

(97)

(2,541)

(6,893)

116

(175)

(10,432)

Future net cash flows, before discount

6,366

1,214

380

493

3,457

(6)

510

12,413

10% annual discount for estimated timing of cash flows

(3,089)

(630)

(71)

(109)

(1,100)

175

(216)

(5,040)

Standardized measure of discounted future net cash flows

3,276

584

309

384

2,357

169

294

7,373

Equity-accounted investments

187

336

523

 

 

 

 

 

 

 

 

 

 

2020

Subsidiaries

 

 

 

 

 

 

 

 

Future cash inflows

12,167

1,513

2,497

2,628

9,914

928

959

30,607

Future production and decommissioning costs

(7,748)

(1,159)

(2,276)

(1,857)

(3,907)

(1,257)

(450)

(18,654)

Future development costs

(1,632)

(297)

(373)

(698)

(226)

(24)

(3,249)

Future net cash flows, before income taxes

2,787

58

220

399

5,308

(554)

486

8,704

Future income taxes

(69)

(60)

(1)

(2,954)

199

(104)

(2,990)

Future net cash flows, before discount

2,718

58

160

397

2,354

(355)

382

5,714

10% annual discount for estimated timing of cash flows

(1,038)

(5)

1

(40)

(696)

153

(103)

(1,727)

Standardized measure of discounted future net cash flows

1,680

53

161

357

1,659

(202)

279

3,987

Equity-accounted investments

100

233

333

 

 

 

 

 

 

 

 

 

 

2019

Subsidiaries

 

 

 

 

 

 

 

 

Future cash inflows

19,932

2,554

3,402

4,432

12,597

1,972

1,246

46,135

Future production and decommissioning costs

(9,156)

(1,704)

(2,779)

(2,196)

(3,398)

(1,785)

(461)

(21,480)

Future development costs

(2,081)

(370)

(527)

(563)

(325)

(36)

(3,901)

Future net cash flows, before income taxes

8,696

479

622

1,709

8,637

(138)

749

20,754

Future income taxes

(819)

(21)

(125)

(959)

(5,188)

101

(178)

(7,191)

Future net cash flows, before discount

7,877

458

497

750

3,448

(37)

570

13,563

10% annual discount for estimated timing of cash flows

(3,918)

(47)

(117)

(286)

(1,025)

184

(126)

(5,334)

Standardized measure of discounted future net cash flows

3,960

411

381

464

2,424

147

444

8,230

Equity-accounted investments

101

136

238

f) Changes in the standardized measure of discounted future net cash flows

Changes in the standardized measure of discounted future net cash flows

In EUR mn

 

 

 

 

2021

2020

2019

Subsidiaries

 

 

 

Beginning of year

3,987

8,230

9,304

Oil and gas sales produced, net of production costs

(2,262)

(3,397)

(3,942)

Net change in prices and production costs

8,231

(7,040)

(1,810)

Net change due to purchases and sales of minerals in place

(67)

531

Net change due to extensions and discoveries

5

22

72

Development and decommissioning costs incurred during the period

657

1,031

674

Changes in estimated future development and decommissioning costs

(269)

259

(398)

Revisions of previous reserve estimates

1,854

757

1,216

Accretion of discount

341

732

828

Net change in income taxes (incl. tax effects from purchases and sales)

(4,935)

3,625

1,646

Other1

(168)

(232)

108

End of year

7,373

3,987

8,230

Equity-accounted investments

523

333

238

1

Contains movements in foreign exchange rates vs. the EUR

IFRSs
International Financial Reporting Standards
Pearl
Pearl Petroleum Company Limited
net income
Net operating profit or loss after interest and tax