Romanian
oil&gas company OMV Petrom announced yesterday that it 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.
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,
reports local Economica.net.
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 Petrom ended the year with
EUR 155 million losses, its first losses since Austrian group OMV took
over the company from the Romanian state in 2004. However, the losses
were mainly determined by one-off costs related to asset impairments, as
the group wrote down the value of its upstream assets to reflect the
lower oil prices. The one-off expenses totaled EUR 605 million.
Excluding these costs, the company would have made a net profit of some
EUR 567 million, down by half compared to 2014.
The group
shouldn’t register any more such costs if the oil price stabilizes
around USD 40 per barrel this year, according to Mariana Gheorghe, OMV
Petrom’s CEO.
(Romania-insider.com)