About OMV

OMV Aktiengesellschaft (OMV) produces and markets oil and gas, as well as chemical products and solutions. Segments The company operates through Exploration & Production, Refining & Marketing, and Chemicals & Materials segments. Exploration & Production segment This segment explores, develops, and produces oil and gas in its four core regions of Central and Eastern Europe, the Middle East and Africa, the North Sea, and the Asia-Pacific. Central and Eastern Europe OMV Petrom continued its portfolio optimization efforts in 2021 with the sale of 40 onshore oil and gas fields in Southeastern Romania. OMV Petrom also sold all of its holdings in E&P assets in Kazakhstan. In Romania, the company drilled 36 new wells and sidetracks, and 695 workover jobs were performed. The first total shutdown of the Petromar asset was successfully and safely finalized in October. In September and October, modernization and upgrades, as well as necessary maintenance work were performed at the offshore platforms and the Midia terminal. In Austria, phase 1 of the country’s largest ground mounted photovoltaic plant commenced operations in January. It generated 12.1 GWh of carbon-neutral electricity for in-house use from January to December. The second and final construction phase started in Q4/21. This phase will raise generation capacity to a total of 15.32MWp and is expected to go online in Q3/22. Once fully operational, the plant will generate around 14.25 GWh of electricity. A three-week turnaround at the Aderklaa sour gas plant was finalized in May. Phase 1 of the Smart Oil Recovery (SOR) drilling workover campaign was finalized. Eight new wells started production at the end of January 2022. The Middle East and Africa In mid-January 2022, the company was able to lift the force majeure that had to be declared on crude oil exports from two Libyan ports following a political dispute in December 2021. In the United Arab Emirates, drilling continued at the Satah Al Razboot (SARB) and Umm Lulu fields. This allowed the production ramp-up to continue despite OPEC quota restrictions. While Yemen’s security situation continuously poses significant challenges, OMV was able to complete the workover campaign in Block S2 and commission two power generation units for the central processing facility in Q4/21. In Tunisia, the production rate at the Nawara natural gas field was stabilized in 2021, owing to the building of operational capabilities and the implementation of digital technologies. North Sea In line with the strategy of reducing the product portfolio’s carbon intensity, OMV sold its entire 25% stake in the Wisting oil discovery. The economic effective date of the transaction is January 1, 2021. The Hywind Tampen project is on track to deliver initial power to Gullfaks in 2022. Upon completion, it will be the world’s first wind farm to power offshore platforms and reduce CO2 emissions by 200,000 t per year. The concept selection for the Iris/Hades development was confirmed in November 2021. A number of developments were completed in 2021 that will extend plateau production for the Gudrun and the Edvard Grieg fields. These include two tie-ins to the Gudrun field, a new extended well test at the Rolvsnes field, a tie-back to the Solveig field, and three new infill wells to the Edvard Grieg platform that were put into production. The Asia-Pacific In line with its strategy, SapuraOMV sold all of its interests in various mature oil-producing assets located offshore Peninsular Malaysia. The effective date of the transaction is January 1, 2021. The Jerun natural gas project is progressing according to plan. Detailed engineering is well on track, and the first deliveries of structural steel have arrived at the fabrication yard. In New Zealand, OMV continued the redevelopment and optimization of the Maui and Pohokura natural gas assets. The Pohokura onshore well intervention was successfully completed. The Maui natural gas field re-development in New Zealand is on track, with the Maui A Crestal Infill completed and the Maui B IRF Phase 3 progressing well. OMV’s divestment of its 69% share in the Maari oil field is expected to close in 2022. Key Projects Neptun (Romania, OMV 50%) In 2021, Romanian state-controlled natural gas company Romgaz made a binding offer to acquire ExxonMobil’s 50% stake in the Neptun Deep license offshore Romania. OMV Petrom will become operator of the project once Romgaz completes the takeover, expected for 2022. Preparations for the ownership take over are underway. OMV Petrom maintains a keen interest in seeing the Black Sea resources developed. Other Major Projects (Romania, OMV 100%) At the Petromar asset, a new offshore well was put into production in March and set a record for the longest section drilled offshore by OMV Petrom measuring 2,902 m. A number of installations were added to Petromar as part of a rejuvenation program, including new cranes, a new helideck, and new gas-to-power installations. The Enhanced Oil Recovery (EOR) pilot project that was initiated at the Moldova asset was extended and the initial results, water cut decrease in certain production wells, were observed. Encouraged by the results of this pilot, a full field application in another field in the Muntenia Vest asset has been launched. These projects aim to increase recovery from these mature assets by injecting a viscous water mixture into the reservoir. Nawara (Tunisia, OMV 50%) The company was able to stabilize production at the Nawara natural gas field in 2021. Umm Lulu and SARB (the United Arab Emirates, OMV 20%) Uninterrupted operations were maintained at the Umm Lulu and Satah Al Razboot (SARB) fields. Drilling activities also continued in both fields. This allowed production to continue to ramp up despite the OPEC quota restrictions. Ghasha Concession (the United Arab Emirates, OMV 5%) The Ghasha concession is being developed as three projects in parallel, namely Hail & Ghasha, the Dalma project (containing several fields in the Dalma area), and the Deep Gas Development (also containing several fields). Dalma is expected to deliver first gas in 2025, with the field eventually producing around 54 kboe (thousand barrels of oil equivalent)/d of natural gas. The award of the Engineering Procurement and Construction (EPC) contracts in November was a major milestone for the Ghasha concession. The construction of ten artificial islands is progressing as planned. Khor Mor (KRI, OMV 10%) The Khor Mor field achieved steady production exceeding expectations. The capacity expansion project is progressing as per plan with early civil engineering works completed. The project is on track for first gas in 2023. Gullfaks (Norway, OMV 19%) In 2021, the Equinor-operated Gullfaks field delivered strong production volumes, mainly due to reduced natural gas injection. Phase 1 of the Hywind Tampen construction (consisting of 11 floating wind turbines) was finalized in Q2/21. The generation output of 5 out of the 11 turbines will be used to reduce natural gas-fired power generation at Gullfaks. The project is on track to deliver first power in 2022. Once the construction of the substructures is complete in spring 2022, the windmills will be assembled and towed to the field. Gudrun (Norway, OMV 24%) Phase 2 of the Gudrun field redevelopment is delayed due to COVID-19-induced personnel restrictions offshore. First water injection from the new wells is scheduled to start in mid-2022. Edvard Grieg (Norway, OMV 20%) The Edvard Grieg field produced above expectations in 2021 due to higher export capacity availability. Three infill wells were completed during the year to support production capacity. In Q3/21, production from the nearby Solveig field commenced. The Solveig field is developed with seabed installations tied to the Edvard Grieg platform for further processing. In addition, the extended well test from the Rolvsnes field commenced in early August. These two near-field tiebacks to Edvard Grieg will extend its plateau production phase. Edvard Grieg is the first field in the world to be awarded the CarbonClear certification, Intertek’s new independent upstream carbon intensity certification for oil and gas producers. Hades/Iris (Norway, OMV 30%) Hades/Iris is the first OMV-operated development project in Norway. The concept selection was approved by all license partners in November and will allow the project to progress toward front-end engineering and design (FEED) studies. OMV is planning to make the final investment decision (FID) in late 2022 and submit the plan for development and operations (PDO) to the authorities by year-end 2022 to take part in temporary Norwegian tax incentives. Production start-up is expected in 2026. SK408 (Malaysia, OMV 40%) In Malaysia, the phase 1 development of the SK408 license (the Gorek, Larak, and Bakong fields) continued to produce at a high level. Phase 2 of the license, the Jerun project, received the JV’s final investment decision in March 2021. The main engineering, procurement, construction installation, and commissioning (EPCIC) contract could thus be awarded shortly after. Construction started in September, and the main construction milestones for 2021 were met. Maui A Crestal Infill (New Zealand, OMV 100%) The Maui A Crestal Infill (MACI) project is part of a NZD 500 mn investment in the Maui and Pohokura fields and is critical for ensuring the security of New Zealand’s domestic energy supply. All six wells were completed as planned. Maui B IRF Phase 3 (New Zealand, OMV 100%) The project scope of the Maui B IRF Phase 3 infill drilling comprises drilling, completion, tie-in and commissioning of five sidetrack wells on the Maui B platform. The commissioned rig arrived in New Zealand and is expected to commence the drilling campaign in Q1/22. In 2021, OMV drilled eight exploration and appraisal wells in six different countries, six of which were completed and four were classified as discoveries. OMV Petrom drilled one exploration well in Romania resulting with an oil discovery, evaluation is ongoing. OMV finalized three exploration wells in Norway in 2021. In New Zealand, OMV drilled the MA-14B (Maui East) exploration well and discovered natural gas. The SapuraOMV-operated Eagle-1 drilling in Australia was completed in June 2021. The well did not discover any producible hydrocarbons. The drilling of one well in Tunisia and one in the United Arab Emirates was still ongoing at year-end. These are expected to be finalized in 2022. Proved reserves as (1P) of December 31, 2021, were 1,295 mn boe (thereof OMV Petrom: 419 mn (million) boe (barrel of oil equivalent)). Proved and probable reserves (2P) were 2,197 mn boe (thereof OMV Petrom: 680 mn boe). Refining & Marketing (R&M) segment This segment operates three refineries in Europe, Schwechat (Austria) and Burghausen (Germany), both of which feature integrated petrochemical production, and the Petrobrazi refinery (Romania). In addition, OMV holds a 15% share in ADNOC Refining and in ADNOC Global Trading. OMV’s total global processing capacity amounts to around 500 kbbl/d (Thousand barrels per day). Fuels and other sales volumes in Europe were 16.3 mn t (Metric ton) in 2021 and the retail network consists of around 2,100 filling stations. The natural gas sales volume was 196.4 TWh in 2021. OMV owns gas storage facilities with a capacity of 30 TWh (Terawatt hour), holds a 65% share in the Central European Gas Hub (CEGH), and operates a gas-fired power plant in Romania. OMV’s Refining & Marketing business refines and markets fuels and natural gas. It operates three inland refineries in Europe and holds a strong market position in the areas where its refineries are located, serving a strong branded retail network and commercial customers. In the Middle East, it owns 15% of ADNOC Refining and ADNOC Global Trading. R&M refines and markets fuel products in Central and Eastern Europe, as well as in the Middle East through OMV’s 15% interest in ADNOC Refining and ADNOC Global Trading. OMV’s European downstream business model is characterized by a high degree of physical integration along the value chain from crude supply to refining, retail, and commercial sales. Total fuels and other sales volumes Europe amounted to 16.34 mn t in 2021. Commercial fuel customers are mainly from industrial transportation and construction sectors and account for more than 60% of the sales volume, while the strongly branded retail network comprising 2,088 filling stations accounts for the remaining sales volumes. OMV owns gas storage facilities with a capacity of 30 TWh, holds a 65% share in the Central European Gas Hub (CEGH), and operates a gas-fired power plant in Romania. ADNOC Refining & Trading Alongside majority shareholder ADNOC (65%) and Eni (20%), OMV remains a strategic partner in ADNOC Refining after acquiring 15% of the company’s shares at the end of July 2019. In 2021, ADNOC Refining operated its major refinery in Ruwais, which is the world’s fourth largest refining complex with integrated petrochemicals; and its Abu Dhabi refinery, which closed at the end of 2021 as part of ongoing efficiency and competitiveness improvement initiatives. Retail In July 2021, OMV and VERBUND reached an agreement on the sale of OMV’s 40% stake in Smatrics, a joint venture in electromobility, to VERBUND. Gas Supply, Marketing, and Trading OMV markets and trades natural gas in nine European countries and in Turkey. OMV Gas Marketing & Trading GmbH’s (OMV Gas) sales activities are focused on a diverse and resilient customer portfolio in the large-scale industry and municipality segments. OMV Gas conducts sales activities in Austria, Germany, Hungary, the Netherlands, and Belgium, where 2021 sales amounted to 156.2 TWh. Gas Logistics OMV operates gas storage facilities in Austria and Germany with a storage capacity of 30 TWh. Additionally, OMV holds a 65% stake in the Central European Gas Hub (CEGH), the leading gas trading hub in Central and Eastern Europe. On May 31, 2021, OMV closed its divestment of its entire 51% stake in Gas Connect Austria to VERBUND. OMV is a financing partner of the Nord Stream 2 project. OMV signed a supply contract with AustroCel Hallein to supply OMV with advanced bioethanol totaling up to 1.5 mn l per month starting in January 2021. OMV is developing its own proprietary technology to convert one of these biomasses into advanced fuel. The next step is a pilot plant at the Schwechat refinery. OMV also collaborates with technology providers, industry partners, and academic institutions to produce advanced biofuels at scale. OMV and its partners working on the UpHy project intend to produce green hydrogen for use in both the mobility sector and the refining process. OMV is developing an electrolysis plant at the Schwechat refinery for this purpose, to be powered with renewable electricity, to produce zero-carbon hydrogen. As a pioneer in hydrogen mobility, OMV operates five hydrogen filling stations in Austria. In 2020, OMV together with Daimler Trucks AG, IVECO, Shell, and the Volvo Group launched the H2Accelerate program. During 2021, OMV continued installing photovoltaic panels on filling stations in multiple countries. They have been installed on 170 filling stations with the aim of continuing this expansion in 2022. Chemicals & Materials segment This segment, through the company’s subsidiary, Borealis, is one of the world’s leading providers of advanced and circular polyolefin solutions with total polyolefin sales of 5.9 mn t in 2021, and an European market leader in base chemicals, fertilizers, and plastics recycling. The company supplies services and products to customers worldwide through Borealis and its two important joint ventures: Borouge (with ADNOC, based in the UAE) and Baystar (with TotalEnergies, based in the U.S.). The segment comprises base chemicals production integrated with the refineries in Austria and Germany operated by OMV; the Borealis business of base chemicals, polyolefins, and fertilizers; and the joint ventures Borouge and Baystar. With a strong European footprint and activities through Borealis and its two joint ventures, Borouge (with ADNOC, based in the UAE and Singapore) and Baystar (with TotalEnergies, based in the United States), the company is active in over 120 countries. Base Chemicals The company produces base chemicals, such as olefins (ethylene and propylene), aromatics, butadiene, highpurity isobutene, benzene, phenol, and acetone. Olefins (ethylene and propylene) are important chemical building blocks to produce, among other things, polyolefins (polyethylene and polypropylene), which are in turn used to manufacture a wide variety of consumer and industrial products. Aromatics such as benzene are used as starting materials for consumer products, including clothing, pharmaceuticals, cosmetics, computers, and sports equipment. C4s (e.g., butadiene and butenes) are used in a variety of applications, with butadiene primarily used in manufacturing synthetic rubber, making it a fundamental material for the tire and automotive industries. Butenes are used in specialty chemicals, such as oxo-alcohols for plasticizers and as polyols for coatings and synthetic lubricants. High-purity isobutene is a feedstock for key chemical products like adhesives, lubricants, and vitamins. Phenol and acetone are sold mainly to the polycarbonate and epoxy resin industries. Phenol is also used in phenolic resins and in caprolactam. Acetone is also an ingredient in solvents and MMA for PMMA (plexiglass). Polyolefins Following the acquisition of the majority stake in Borealis, OMV Group extended its value chain to polymers and became one of the world’s leading providers of advanced and circular polyolefin solutions. Through Borealis, the Company is the second largest polyolefin producer in Europe and among the top ten producers globally. Borealis operates seven polyolefin plants located in Schwechat, Stenungsund, Porvoo, and Burghausen, where they are integrated with steam crackers, as well as in Beringen and Kallo, where they are integrated with the existing PDH facility, and in Antwerp. In addition, Borealis operates several compounding plants in Europe, the United States, South Korea, and Brazil. Renewables and Circular Chemicals Early 2021, Borealis and TOMRA announced the operational start of their advanced mechanical recycling demo plant in Lahnstein, Germany. To expand and accelerate its chemical recycling activities, Borealis took a minority stake in Renasci N.V., a provider of innovative recycling solutions and creator of the novel Smart Chain Processing (SCP) concept. In December 2021, OMV took a major step in scaling up its chemical recycling capacities by making the final investment decision to build a chemical recycling demo plant based on its proprietary ReOil technology. The plant has a capacity of 16,000 t p.a. The feedstock will consist mainly of polyolefins and will be sourced in Austria in close cooperation with local waste management companies. Examples of such plastic waste include food packaging, plastic cups, lids from takeout coffee, and confectionery packaging. This is OMV’s next step toward an industrial-scale plant with a processing capacity of up to 200,000 t/year planned for 2026. Fertilizers, Melamine, and Technical Nitrogen Products OMV, through its subsidiary, Borealis, is a leading European manufacturer and distributor of fertilizers, technical nitrogen products, and melamine: The company is Europe’s third largest nitrogen fertilizer manufacturer and the world’s third largest melamine producer by production capacity utilized. Borealis produces and then distributes and supplies fertilizers and technical nitrogen products each year via its commercial organization, Borealis L.A.T. This comprises more than 60 warehouses across Europe and has an inventory capacity of over 700,000 t. Joint Ventures Through Borouge, the company’s footprint reaches all the way to the Middle East, the Asia-Pacific region, the Indian subcontinent, and Africa. Production company, Borouge ADP (Borealis 40%, ADNOC 60%) is based in the United Arab Emirates, while Borouge PTE, which handles sales and marketing (Borealis 50%, ADNOC 50%), is headquartered in Singapore. Baystar (Borealis 50%, TotalEnergies 50%) Baystar is a joint venture between TotalEnergies Petrochemicals and Refining USA, Inc. (TEPRI), a wholly owned subsidiary of TotalEnergies SE and Novealis Holdings LLC (Novealis), a wholly owned subsidiary of Borealis AG. Strategy The company’s 2030 strategic priorities are to become a net-zero emissions company by 2050; reduce Scope 1 and 2 emissions by 30% and Scope 3 emissions by 20% by 2030; develop into a global leader in specialty polyolefin Solutions; establish a global leadership position in circular economy solutions; become a leading European producer of sustainable fuels and chemical feedstocks; reduce fossil production and shift to gas; and enhance OMV’s shareholder value. An important pillar of OMV’s strategy is the ambition to become a leader in renewable and circular chemicals and materials. Chemicals & Materials This segment’s 2030 strategic priorities are to develop into a global leader in specialty polyolefin solutions; grow in attractive markets with a particular focus on North America and Asia; grow sustainable polyolefin production to up to ~40% of total polyolefin production in Europe; establish a leading position in renewable and circular economy solutions; and diversify portfolio by entering adjacent products and new product groups. Chemicals & Materials has a strong pipeline of organic growth projects in Europe, the Middle East, and North America. Refining & Marketing This segment’s 2030 strategic priorities are to reduce crude distillation throughput by 2.6 mn t while growing the production of renewable mobility fuels and sustainable chemical feedstocks to approximately 1.5 mn t; produce and market at least 700,000 t of sustainable aviation fuels; invest in a EV charging network and significantly increase margin contribution from Retail non-fuel business; and significantly reduce absolute Scope 1, 2, and 3 emissions. Divestments Exploration & Production On 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) to Magnetic Oil Limited. On August 1, 2021, SapuraOMV Upstream Sdn. Bhd. sold its entire share in SapuraOMV Upstream (PM) Inc., which held various producing assets located offshore Peninsular Malaysia, to Jadestone Energy PLC, a Singapore-based, London-listed independent oil and gas company. On December 1, 2021, OMV Petrom finalized the sale of 40 marginal onshore oil and gas fields in Romania. During 2021, OMV (NORGE) AS decided to sell its entire 25% stake in the Wisting licenses to Lundin Energy AB. Sale transaction was closed on December 17, 2021 whereas the economic effective date of transaction was January 1, 2021. Refining & Marketing On May 31, 2021, OMV closed the transaction to sell its 51% interest in Gas Connect Austria GmbH (based in Vienna) to VERBUND. During 2021, OMV Downstream GmbH decided to sell its 40% shares in SMATRICS GmbH & Co KG and EMobility Provider Austria GmbH (both based in Vienna) to VERBUND. The sales transaction was closed on September 30, 2021. On December 3, 2021, OMV finalized the sale of its 100% share in Haramidere Depoculuk Anonim Sirketi (based in Instanbul) to CAN ULUSLARALASI YATIRIM ANONIM SIRKETI. History OMV Aktiengesellschaft was founded in 1956.