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Romanian OMV could close 350 wells due to the low oil prices

Staff writer |
Romanian company OMV Petrom suspended the production of 350 of its onshore oil wells in 2015 and could close another 350 wells this year, due to the low oil prices.

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A total of 1,000 of the company’s 7.500 oil wells in Romania risk being closed if the oil prices remain low and don’t cover these wells’ production costs.

OMV Petrom will thus further reduce its oil output in Romania by some 4%, after a 2% decline in 2015, according to Gabriel Selischi, OMV Petrom’s director in charge of upstream activities.

The group also reduced its investments (CAPEX) by 38%, to EUR 876 million, in response to the adverse market conditions. The headcount went down by some 900 employees last year, to 16,000, and personnel restructuring may continue if the market conditions remain negative.

OMV announces to initiate a process to sell up to 100% of its wholly owned subsidiary OMV Petrol Ofisi A. S., a company in the Turkish oil products retail and wholesale market.

OMV is currently selecting its advisors to support the potential transaction and the structuring of the envisaged process. A potential transaction is aimed at optimizing OMV’s integrated portfolio in a challenging market environment.

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