OMV: Low Production in Libya
Production of the Austrian energy group is likely to amount to only a quarter of the normal level.
OMV itself speaks of a "severe deterioration" in its oil production in Libya. But for the moment, the only thing to do is to wait and watch developments. Two days after the beginning of military intervention the future situation is impossible to be assessed.
About 9% of the group’s production came from Libya last year, 33,000 barrels a day. Currently, the oil extraction is at a quarter of the level before the outbreak of civil war. OMV operates not by itself, but is represented by participations in Libya.
Nothing is presently commented by OMV about possible write-offs due to the events of recent weeks. It is conceivable that after military operations recent production losses could be compensated by higher deliveries. Assets in Libya should amount to around 110m. Besides, exploration licenses for € 485m until 2032 were agreed on in 2008.
But a complete stop of oil supplies could also be possible. A political embargo is currently under discussion. German Foreign Minister Guido Westerwelle argues “for larger scale” sanctions on Libyan oil companies. Whether this will mean also a ban on the Libyan NOC licensing company, which is a non-operational OMV partner will be affected, is still unclear at present.