OMV puts investment plans on hold after oil price drop

Newsroom 06/11/2014 | 14:21

OMV announced Thursday that it will review its investment plans for 2015, due to volatile and weaker market fundamentals, such as the decrease of crude oil prices.

“Low oil prices is the challenge we face now. In the near future the price will be 80, 85 or 90 USD / barrel, we have to revise our plans of investments for the next two – three years and that is what our investors are doing”, Gerhard Roiss, general director OMV, said in a video-conference.

OMV’s financial director, David Davies, was also in attendance and said it is much to early to release exact numbers regarding the reevaluation of investments.

Roiss added that it is not excluded that the reassessment might affect oil production in 2016.

OMV Petrom, company controlled by OMV Austria, also announced on Thursday it will likely change its investment plans for 2015, given the less favorable conditions on the market and the high volatility. The new OMV Petrom investment plans for 2015 will be announced in February. OMV Petrom announced at the start of the year 2014 that it is planning on investing EUR 1.3 billion, mainly for exploration and production.