OMV sees $ 349 mm loss from Austrian and Kazakh fields

Oct 21, 2010 12:00 AM

OMV AG, central Europe’s biggest oil company, will take a charge of about EUR 250 mm ($ 349 mm) in the third quarter, mainly for write-downs on two underperforming oil and gas fields. The group is writing down the value of its Strasshof field in Austria and the Kazakh oil production of its Romanian OMV Petrom unit by EUR 200 mm, it said.

A new export customs duty in Kazakhstan contributed to the write-down while EUR 50 mm of the charge related to the cost of job cuts at western European refineries, it said. “A recently executed technical assessment of these fields suggests that originally expected production performance will not be achieved,” the company said.

OMV, which in February cut its 2010 production target by 7 % to 325,000 barrels of oil equivalent a day, has said it aims to maintain output from its existing portfolio at the current level. Production was 316,000 barrels in the third quarter, down slightly from 318,000 barrels in the previous quarter.

The group said that it had restarted “detailed negotiations” to buy Dogan Sirketler Grubu Holding’s stake in Petrol Ofisi.

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