15 C
April 21, 2021

Mariana Gheorghe, OMV Petrom CEO: “In response to low oil prices we have scaled down investment plans for 2015”

“As a result of past investments, the production of hydrocarbons in Romania has risen in Q1 of 2015 by approximately 2 per cent compared to the same period last year, thanks to the rising contribution of major overhaul operations and deposit (re)development projects. Nevertheless, the Upstream result was affected by the steep drop in oil prices, which was only partially compensated by the positive exchange rate effects and by the slight rise in the volume of sales. When it comes to exploration, along with ExxonMobil we finalized the drilling of two deep-sea wells in the Black Sea and, since then, the drilling rig has been moved to a new drilling site in the Neptun Deep bloc. When it comes to Downstream Oil, the refining activity’s contribution has been very good, determined by favourable refining margins and by improved operational performance, while when it comes to marketing activity the retail sales grew by 4 per cent compared to the same period last year. In response to low oil prices we have scaled down the Group’s investment plans for 2015 by approximately 30 per cent year-on-year and we have continued to optimize our cost structure, measures forecast to protect our extended cash flow position. However, these initiatives will affect our future production of hydrocarbons. In the following months we expect the public debate concerning the fiscal and regulatory environment to continue, as announced by the authorities, and we seek to obtain a stable and predictable framework that favours investments, a key-condition for future investment.”


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