Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Investor Day (March 2018)
20 slides from Omv's investor day presentation, Mar 13, 2018
Slide 1: OMV Strategy 2025 Capital Markets Day
2025 OMV STRATEGY CAPITAL MARKETS DAY London Ι March 13, 2018
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements. Forward looking statements usually may be identified by the use of terms such as “outlook”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “target”, “objective”, “estimate”, “goal”, “may”, “will” and similar terms, or by their c
Slide 3: Capital Markets Day – Johann Pleininger
Capital Markets Day Johann Pleininger Deputy Chairman Upstream Executive Board Member London, March 13, 2018 OMV Aktiengesellschaft
Slide 4: OMV Upstream in a nutshell
OMV Upstream in a nutshell Focused international player 2017 0.28 1.15 bn boe 348 kboe/d Lost Time Injury Rate 1P reserves Production 82% 52:48 USD 8.8 per boe EUR 1.2 bn Production from Oil:Gas Production EU/OECD countries Production split cost Clean Operating Result Drilling rig, Austria 3 Capital
Slide 5: We delivered on our promises: Lower cost, increased earnings
We delivered on our promises: Lower cost, increased earnings Cost development 1 Production Clean Operating Result EUR bn Kboe/d EUR mn 10x (42) -42%% 3.8 1,225 +15% 348 2.6 303 311 2.2 CAPEX E&A expenditure Production 117 cost 40 2015 2016 2017 2015 2016 3 2017 3 2015 2016 3 2017 3 13.2 10.6 2 8.8 2
Slide 6: We delivered on our promises: Strengthened reserve base
We delivered on our promises: Strengthened reserve base 1P Reserves Reserve Replacement Rate 1P Reserve Replacement Cost Mn boe 3 years Ø RRR, % 1 year Ø, USD/boe 1,146 1,028 1,030 116 58 73 70 77 31 17 10 2015 2016 2017 2015 2016 2017 2015 2016 2017 3 years peers‘ median 2016 1 1 Source: IHS Markit
Slide 7: We delivered on our promises: Portfolio upgraded, new core region Russia established
We delivered on our promises: Portfolio upgraded, new core region Russia established UK Russia Country exit Acquisition of 24.99% in Yuzhno Russkoye Romania Pakistan Sale of marginal fields Upstream exit 1 Tunisia Libya Divestment of Expansion of offshore asset Sirte position Gabon Australia Country
Slide 8: Upstream strategy 2025
Upstream strategy 2025 Renew and improve the quality of our asset base Double reserves Extend track record of operational excellence Increase cash generation Higher-quality portfolio generating more cash 7 Capital Markets Day, March 13, 2018
Slide 9: Drive production organically and via acquisitions
Drive production organically and via acquisitions Production growth Kboe/d 600 500 Acquisitions 420 Production cost 348 Organic growth both in 2020 and 2025 e.g. Neptun, Nawara, USD/boe Aasta Hansteen <8 Asset base 2017 2018 1 2020 2025 1 Excluding acquisitions and divestments 8 Capital Markets Day,
Slide 10: Ensure sustainable reserve replenishment
Ensure sustainable reserve replenishment 1P Reserve development Bn boe > 2.0 1P Reserves Reserve life years 2x 8-10 1.1 Reserve Replacement Rate Gas share 3 years Ø, % % >100 >50 2017 2025 9 Capital Markets Day, March 13, 2018
Slide 11: Increase international footprint: 4 + 1
Increase international footprint: 4 + 1 North Sea Russia CEE Australasia MEA 1 Australia New Zealand OMV Upstream regions Core region – CEE Core region – North Sea Core region – MEA Core region – Russia Development region – Australasia Growth Note: Madagascar not depicted in map 1 Sale agreement for
Slide 12: Exploration: Faster and more disciplined approach
Exploration: Faster and more disciplined approach Excellent Barents Sea track record Increase size and quality of E&A portfolio Grow in OMV core and development regions Achieve faster monetization of discoveries Apply proven excellence in exploration Play opening successes in Wisting, Nept
Slide 13: Technology drives recovery and reduces downtime
Technology drives recovery and reduces downtime Highlights Mean-time-between-failure of producing wells of over 1,900 days (Austria) Reduced number of well interventions per year from over 150,000 to below 6,000 (Romania 1) Low cost drilling 2 and drilling world records Over 80% automated
Slide 14: Transform OMV Upstream into a top digital player
Transform OMV Upstream into a top digital player Project examples Drilling cockpit for real-time collaboration Latest 3D visualization technology for geological interpretation Machine learning and cloud solutions for seismic data processing Future objectives Faster project evaluation for
Slide 15: CEE: Sustain value generation in Romania and Austria, realize Black Sea potential
CEE: Sustain value generation in Romania and Austria, realize Black Sea potential Maximize profitable recovery 196 kboe/d 55% 100% Infill drillings, workovers, selected field re-developments mostly onshore gas operated 1 production Strict cost management (CAPEX, production cost) Explore in R
Slide 16: Secure long-term sustainable contribution in North Sea
Secure long-term sustainable contribution in North Sea 79 kboe/d Snefrid Nord Bring Aasta Hansteen on stream offshore production development approval First gas in Q4 2018 Cumulative gas production of up to 43 mn boe 65% Peak production of 18 kboe/d oil Snefrid Nord to be developed as a tie
Slide 17: Build upon huge potential of Russia
Build upon huge potential of Russia Realize organic growth potential 106 kboe/d 1 100% 100 kboe/d from Yuzhno Russkoye over next years onshore production gas Upside from Turonian reservoir layer Production cost Continue growth path with Achimov IV/V <2 USD per boe Conclude asset swap with
Slide 18: Grow and access potential in Middle East & Africa
Grow and access potential in Middle East & Africa Secure stable contribution from Libya 47 kboe/d 71% 20% Maintain and grow production level onshore production oil operated 1 Assess Nafoora field expansion Evaluate exploration potential Deliver Nawara gas project in Tunisia First gas in
Slide 19: Expand footprint in Australasia
Expand footprint in Australasia 17 kboe/d 53% 35% offshore production gas operated 1 Realize upside of current position in New Zealand Strong and stable cash generator Highly profitable production Exploit promising exploration potential Develop Australasia into a core region Evaluate fur
Slide 20: Upstream strategy 2025 – Key takeaways
Upstream strategy 2025 – Key takeaways Renew and improve the quality of our asset base Double reserves Extend track record of operational excellence Increase cash generation 19 Capital Markets Day, March 13, 2018