OMV: Downstream restructuring on track

December 19, 2013 - 9:00 am (CET)

• OMV is streamlining the refining business to sites with a high level of integration
• OMV divests the 45% stake in Bayernoil refinery network to Varo Energy B.V.
• Varo Energy B.V., a joint venture between the Vitol Group and the Carlyle Group, to take over OMV’s 45% share in Bayernoil

OMV Deutschland GmbH has signed an agreement to sell its 45% share in the German Bayernoil refinery network to Varo Energy B.V. (Varo Energy). In addition to the stake in the refinery network, the transaction includes related inventory, the bitumen plant in Großmehring and the wholesale business related to Bayernoil.

OMV CEO Gerhard Roiss: "This transaction marks a milestone in realizing our strategy in shifting low-return downstream assets towards high-return upstream assets. 2013 was the decisive year where we crossed the bridge in becoming an upstream-focused integrated oil and gas company. This year we have reached several important milestones, amongst others, we announced a record result for 2012, invested heavily in the North Sea and closed several divestments besides Bayernoil."

The sale marks the finalization of the planned reduction in OMV’s annual refinery capacity by 4.6 million tons to 17.4 million tons in the refineries Schwechat, Burghausen and Petrobrazi.

"This transaction represents the biggest step in the defined divestment program, targeting proceeds of EUR 1 bn by the end of 2014 and clearly underpins our capability to deliver on our strategic priorities. The optimization of our refining and marketing portfolio is now largely completed. The result is an asset base with superior integration and hence a strong competitive advantage in our defined core market", said Manfred Leitner, Executive Board member responsible for Refining and Marketing.

The OMV strategy aims to optimize the Refining and Marketing share of capital employed within the overall portfolio. The refinery Bayernoil is not integrated with regard to petrochemicals and is, therefore, not linked to the plastics business, hence the decision to sell it. OMV will continue to operate three refineries: those in Schwechat (Austria) and Burghausen (Southern Germany) feature integrated petrochemical production, while the refinery in Petrobrazi (Romania) is completely dedicated to processing Romanian crude oil and, therefore, 100% integrated with the upstream business.

The filling station business in Germany remains an important business area for OMV. Therefore, the transaction with Varo Energy contains contractual arrangements for the future supply of the OMV retail stations in Germany.

The deal is set to close in 2014 and is subject to, in particular, the non-exercise or waiver of pre-emption rights by existing co-shareholders and merger control clearance. Both parties have agreed not to disclose the sale price.

OMV Aktiengesellschaft
With Group sales of EUR 42.65 bn and a workforce of around 29,000 employees in 2012, OMV Aktiengesellschaft is Austria’s largest listed industrial company. In Exploration and Production, OMV is active in two core countries Romania and Austria and holds a balanced international portfolio with a production of around 303,000 boe/d in 2012. In Gas and Power, OMV sold approximately 437 TWh of gas in 2012. In Austria, OMV operates a 2,000 km long gas pipeline network with a marketed capacity of around 103 bcm in 2012. As of the end of 2012, OMV’s Refining and Marketing segment had an annual refining capacity of 22 mn t and approximately 4,400 filling stations in 13 countries including Turkey.

Vitol
The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. Since then the company has grown significantly to become a major participant in world commodity markets and is now the world’s largest independent energy trader. Its trading portfolio includes crude oil, oil products, LPG, LNG, natural gas, coal, electricity, agricultural products, metals and carbon emissions. Vitol trades with all the major national oil companies, the integrated oil majors and the independent refiners and traders. Globally Vitol trades over 5 million barrels of crude oil and oil products per day and revenues in 2012 were USD 303 billion.

The Carlyle Group
The Carlyle Group is a global alternative asset manager with USD 185bn of assets under management (“AUM”) across 122 funds and 81 fund of funds vehicles as of September 30, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,450 people in 34 offices across six continents.

For further information, please contact:

OMV Media Relations:
Johannes Vetter, Tel.: +43 1 40440 22729, E-Mail: johannes.vetter@omv.com 
Robert Lechner, Tel.: +43 1 40440 21472, E-Mail: robert.lechner@omv.com 

OMV Investor Relations:
Felix Rüsch, Tel.: +43 1 40440 21600, investor.relations@omv.com 
 
Web: www.omv.com 

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