Secure supply for you at fair and predictable prices is one of our most important goals. Long-term purchase contracts provide the basis for sales activities here, whereby around 50 percent comes from equity production.
OMV Upstream explores and produces oil and gas in Europe, the Middle East, Africa, Russia and Australasia. In 2017 we produced 348,000 boe per day (corresponds to 127.0 mn boe), with oil and gas each accounting for around 50%.
As a wholly owned subsidiary, OMV GAS has access to the natural gas produced by OMV Upstream both in Austria and in other European production centers.
OMV has been active in exploration and production in Austria for more than 60 years and the country continues to play an important part in the company’s international oil and gas production program. On the basis of today’s reserves, OMV assumes that it will be possible to produce oil and gas from Austria for at least another 20 years.
Major volumes of natural gas are acquired from Norway. Here we not only procure gas via our longstanding supply partners, but also through equity production – OMV Upstream has been supplying natural gas from large offshore fields in the North Sea since 2013.
That said, by far the largest volumes of natural gas come from Russia, where OMV has a partnership going back decades: on June 1, 1968, representatives of the Soviet state company Sojusnefteexport signed an agreement with the Österreichische Mineralölverwaltung ÖMV and just three months later, on September 1, the first natural gas arrived at the Baumgarten station in Lower Austria. This made OMV into one of the first Western European companies to import natural gas from Russia, the country with the world’s largest natural gas reserves, and it continues to import to this day, more than 50 years later.
Russia has become a core country for OMV through the acquisition of Yuzhno Russkoye, as well as the possible purchase of a stake in Achimov and additional potential assets.
The construction of the Nord Stream 2 pipeline is also of major strategic importance for us. All forecasts suggest that the EU will need to import around 80% of the natural gas it needs in the year 2030. This in turn means that additional transport capacities are urgently required. OMV is a financing partner on this pipeline project, for which the first construction works at the German landing point in Lubmin are already underway. If everything goes to plan, by the end of 2019 around 55 billion cubic meters of Russian natural gas should flow through the new pipeline to Germany. Together with the Central European Gas Hub in Baumgarten and the pipeline network of Gas Connect Austria, Nord Stream 2 will secure continuous, long-term gas flows to Europe.
Liquefied Natural Gas (LNG)
The procurement of Liquefied Natural Gas (LNG) also opens up interesting possibilities for long-term supply. In December 2007 a contract for LNG regasification capacities was signed with the Rotterdam Gate Terminal, marking an important step in the LNG business. This contract allows us to regasify up to three billion cubic meters of natural gas every year.
All of these activities secure us a balanced procurement portfolio in order to guarantee secure supply for you well into the future.