Exploration & Production
In the Exploration & Production business segment, OMV boosted value delivery and cash generation from the portfolio of oil and gas assets, while building up a dedicated Low Carbon Business unit in line with the ongoing energy transition and to support the OMV Group’s transformation.
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2022 |
2021 |
Δ |
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Clean Operating Result |
in EUR mn |
7,396 |
2,892 |
156% |
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thereof Gas Marketing Western Europe |
in EUR mn |
(300) |
55 |
n.m. |
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Special items |
in EUR mn |
(460) |
18 |
n.m. |
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Operating Result |
in EUR mn |
6,936 |
2,910 |
138% |
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Capital expenditure1 |
in EUR mn |
1,443 |
1,194 |
21% |
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Exploration expenditure |
in EUR mn |
202 |
210 |
(4)% |
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Exploration expenses |
in EUR mn |
250 |
281 |
(11)% |
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Production cost |
in USD/boe |
8.20 |
6.67 |
23% |
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Total hydrocarbon production |
in kboe/d |
392 |
486 |
(19)% |
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Total hydrocarbon sales volumes |
in kboe/d |
379 |
462 |
(18)% |
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Proved reserves as of December 31 |
in mn boe |
1,037 |
1,295 |
(20)% |
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Average Brent price |
in USD/bbl |
101.32 |
70.91 |
43% |
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Average realized crude oil price2,3 |
in USD/bbl |
95.04 |
65.60 |
45% |
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Average realized natural gas price2,4 |
in EUR/MWh |
53.78 |
16.49 |
n.m. |
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Financial performance
The clean Operating Result rose sharply from EUR 2,892 mn to EUR 7,396 mn in 2022. Exceptionally strong market effects of EUR 5,280 mn as a consequence of substantially higher oil and gas prices were partially offset by negative operational effects of EUR (679) mn due to the missing contribution of Russia following the change in the consolidation method, and a substantially lower Gas Marketing Western Europe result. In addition, production decreased in Romania, Malaysia, and Libya, while production increased in the United Arab Emirates after a revision of OPEC+ restrictions. Sales volumes decreased to a slightly lesser extent compared to production as a consequence of the scheduling of liftings. Depreciation of EUR (97) mn weighed on results, mainly driven by higher production in the United Arab Emirates and Norway. Gas Marketing Western Europe lowered the result, mainly due to losses caused by the Russian supply curtailments and volatility, receivables impairments, and valuation adjustments. A change in the reporting logic for LNG activities had a partially positive offsetting effect.
Net special items amounted to EUR (460) mn in 2022 (2021: EUR 18 mn), which were mainly caused by the change in the consolidation method for Russian operations and the fair value adjustment to contractual position related to the reserve redetermination for the Yuzhno-Russkoye natural gas field. Valuation effects of commodity derivatives in Gas Marketing Western Europe and temporary hedging effects were partial offsets. The release of a provision in the LNG business also had a positive effect. The Operating Result reached EUR 6,936 mn (2021: EUR 2,910 mn).
Production cost excluding royalties increased to USD 8.2/boe in 2022 (2021: USD 6.7/boe), mainly driven by the change in the consolidation method of Russian operations as of March 1, 2022, and general price inflation.
The total hydrocarbon production volume decreased by 95 kboe/d to 392 kboe/d, caused above all by the change in the consolidation method of Russian operations as of March 1, 2022. Natural decline in Romania, planned maintenance in Malaysia, and force majeure in Libya following politically motivated closures were the most prominent additional adverse factors. Production increased in the United Arab Emirates after a revision of OPEC+ restrictions.
Total hydrocarbon sales volumes dropped by a lesser extent than production volumes, to 379 kboe/d (2021: 462 kboe/d). The deviation between production and sales volumes is explained by the scheduling of liftings.
In 2022, the average Brent price reached USD 101.3/bbl, a substantial growth of 43% compared to the previous year. The Group’s average realized crude price improved by 45%, supported by a change in the transfer price calculation for Romanian crude oil production. The average realized gas price in EUR/MWh more than tripled to EUR 53.80/MWh.
Capital expenditure including capitalized E&A was raised to EUR 1,443 mn in 2022 (2021: EUR 1,194 mn), rebounding from the previous austerity-induced level. Organic capital expenditure was primarily directed at projects in Romania, New Zealand, and Norway. Exploration expenditure was EUR 202 mn in 2022, and was thus broadly on a similar level compared to 2021. It was mainly related to activities in Malaysia, Romania, and Norway.
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2022 |
2021 |
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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 |
20.9 |
122.0 |
22.6 |
43.5 |
22.4 |
129.9 |
24.0 |
46.4 |
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Austria |
3.3 |
19.7 |
3.3 |
6.6 |
3.6 |
20.6 |
3.4 |
7.0 |
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Kazakhstan2 |
– |
– |
– |
– |
0.7 |
0.7 |
0.1 |
0.8 |
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Norway |
14.7 |
102.2 |
17.0 |
31.7 |
15.3 |
102.3 |
17.0 |
32.3 |
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Libya |
10.4 |
– |
– |
10.4 |
12.0 |
– |
– |
12.0 |
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Tunisia |
0.9 |
14.7 |
2.4 |
3.4 |
0.9 |
17.3 |
2.9 |
3.8 |
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Yemen |
0.6 |
– |
– |
0.6 |
1.1 |
– |
– |
1.1 |
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Kurdistan Region of Iraq |
1.0 |
15.8 |
2.6 |
3.6 |
1.0 |
15.6 |
2.6 |
3.6 |
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United Arab Emirates |
15.4 |
– |
– |
15.4 |
10.8 |
– |
– |
10.8 |
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New Zealand |
3.0 |
47.1 |
7.8 |
10.8 |
3.5 |
51.8 |
8.6 |
12.1 |
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Malaysia2 |
0.6 |
60.0 |
10.0 |
10.6 |
1.7 |
64.5 |
10.8 |
12.4 |
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Russia |
– |
37.7 |
6.3 |
6.3 |
– |
210.6 |
35.1 |
35.1 |
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Total |
70.8 |
419.2 |
72.1 |
143.0 |
72.9 |
613.2 |
104.6 |
177.5 |
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Reserves development
Proved reserves (1P) as of December 31, 2022, decreased to 1,037 mn boe (thereof OMV Petrom: 380 mn boe), with a one-year Reserve Replacement Rate (RRR) of (80)% in 2022 (2021: 77%). The three-year rolling average RRR is 40% (2021: 105%). There were material proved reserves additions realized in Norway and the United Arab Emirates, with a commitment to execute more development drilling and encouraging reservoir performance in both countries. These additions were offset by the exclusion of reserves in Russia since OMV ceased fully consolidating and equity accounting Russian entities. Proved plus probable reserves (2P) decreased to 1,892 mn boe (thereof OMV Petrom: 741 mn boe), dominated by the exclusion of reserves in Russia, which overshadowed the positive revision in Romania from the maturation of the Black Sea Neptun Deep project.