Oil giants OMV insist they now have the resources needed to hit their 2016 production targets following its heavy investment into the North Sea last year.
The Austrian firm upped its stake in the Rosebank and Schiehallion fields west of Shetland last August in a £1.6billion deal with Statoil, and agreed to partner on other exploration projects across the continental shelf.
Ongoing security issues in Libya, which saw production heavily impacted last year, and lower sales volumes hit the company’s profits after a record-breaking year in 2012.
But the company, which has launched a new 1600-staff recruitment drive across Europe, said the deals made over 2013 had been ‘pivotal’ in transforming OMV’s focus from downstream to upstream projects.
“We have now built the portfolio to successfully deliver our 2016 targets, enabling us to grow our long-term profitability as the projects within the portfolio are delivered,” said chief executive Gerhard Roiss.
“Despite challenges in Libya and Yemen, historically low refining margins and depressed spot prices in the gas sector, we have laid the foundations for a strong profitable future.
“The U$2.65billion acquisition of upstream assets will play a key part in delivering our strategy; this acquisition was largely funded by our successful efforts to reduce working capital and leaves balance sheet gearing at the end of the year at 30%, consistent with our long-term target.
“Furthermore, we strengthened the exploration portfolio by acquiring interests in Madagascar and Gabon and made promising discoveries in Norway, Pakistan and Libya.
Production was down 5% year on year for 2014, as the impact of Libya’s security crisis took its toll. Output from the country represents around 10% of OMV’s total oil production, while operating costs rose 9%. Profits fell from £1.47billion in 2012 to £1.42billion in 2013.
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