OMV appoints Deutsche Bank to handle the divestment program in R&M

• Important step in implementing the OMV strategy: Reducing the weighting of the Refining and Marketing (R&M) business segment in the overall portfolio
• Sale of the 45% stake in the Bayernoil refinery network will also be evaluated in order to implement the company strategy

Deutsche Bank has been appointed as the investment bank to handle the structuring and implementation of the divestment program in the R&M business segment. Among other tasks, this includes the assessment of the divestment potential and the initiation of discussions with prospective buyers.
In line with the OMV strategy, the possible sale of the 45% stake in the Bayernoil refinery network will also be evaluated. This would involve a reduction in the annual refining capacity by 4.6 to 17.7 mn tonnes.

The OMV strategy aims to sharpen and simplify the company portfolio. This includes gradually shifting the portfolio away from R&M towards Exploration and Production and Gas and Power. In this context, OMV’s Turkish subsidiary, OMV Petrol Ofisi, already sold its 52% stake in the Cypriot retail company Kibris Türk Petrolleri Limited Sirketi at the end of November 2011. Furthermore, a release issued on December 6, 2011 announced the intention to sell the subsidiary companies in Croatia and Bosnia-Herzegovina.

Deutsche Bank has been appointed as the investment bank to handle the structuring and implementation of the divestment program in the R&M business segment and will start discussions with prospective buyers in the coming months.

OMV will continue focusing the refining business on refineries with integrated petrochemicals or upstream operations. Bayernoil Raffineriegesellschaft mbH does not have an integrated petrochemicals operation, and therefore the option to divest the 45% stake will be evaluated.

OMV operates four refineries: The ones in Schwechat (Austria) and Burghausen (south Germany) have an integrated petrochemicals production. Including the Petrobrazi refinery (Romania), which is fully geared to process Romanian crude oil and the 45% stake in the Bayernoil refinery network (south Germany), the total refining capacity of OMV is around 22.3 mn tonnes a year or around 450,000 barrels per day.

Bayernoil Raffineriegesellschaft mbH operates the largest refinery network in the Bavarian region with production sites in Vohburg and Neustadt an der Donau. The two production sites are connected by more than 11 pipelines and therefore work together as one refinery. Around 750 people are employed at the refinery network which produces liquid gases, fuel such as petrol, jet (aviation turbine fuel) and diesel, as well as heating oil and bitumen, from around 10 mn tonnes of crude oil per year.
OMV has a 45% stake in the Bayernoil Raffineriegesellschaft mbH with a total nominal capacity of 215,000 barrels per day. The OMV share equates to around 97,000 barrels per day or 4.6 mn tonnes a year. A divestment would involve a reduction in the refining capacity to around 17.7 mn tonnes per year or around 353,000 barrels per day.

Background information:
OMV Aktiengesellschaft
With Group sales of EUR 23.32 bn and a workforce of 31,398 employees in 2010, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Exploration and Production, OMV is active in two core countries Romania and Austria and holds a balanced international portfolio. OMV had proven oil and gas reserves of approximately 1.15 bn boe as of year-end 2010 and a production of around 287,000 boe/d in 9m/2011. In Gas and Power, OMV sold approximately 18 bcm of gas in 2010. In Refining and Marketing, OMV has an annual refining capacity of 22.3 mn t and as of the end of September 2011 approximately 4,700 filling stations in 13 countries including Turkey. In Austria, OMV operates a 2,000 km long gas pipeline network with a marketed capacity of around 89 bcm in 2010. With a trading volume of around 34 bcm in 2010, OMV’s gas trading platform, the Central European Gas Hub, is amongst the most important hubs in Continental Europe. OMV further strengthened its position through the ownership of a 97% stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.

Sustainability
OMV is a signatory to the UN Global Compact, and an active supporter to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment, especially in economically weak regions. OMV continuously addresses economic, environmental and social issues related to its business in a responsible manner. The company reports on its activities in a sustainability report in accordance with the Global Reporting Initiative Guidelines.