“Cost efficiency will intensify. We’re eliminating waste and simplifying processes. We have revised our entire investment portfolio,” Gheorghe said at a press conference Thursday.
OMV Petrom’s crude oil and gas output stood at 65.82 million boe last year, 1% lower than in 2013, due to lower production in Kazakhstan. Romania’s total production of crude oil, gas and condensate reached 62.57 million boe, slightly up on the year.
A quarter of OMV Petrom’s hydrocarbon output comes from wells drilled in the last four years and 11% of its output is due to capital repairs and the installation of new wells, while 8% is generated by redevelopment of deposits.
In 2015, OMV Petrom has planned around 1,200 capital works and expects to drill up to 70 new wells
Gheorghe added the company started outsourcing its upstream maintenance operations last year, to streamline its activities.
“We’re talking about a few hundred employees,” she said.
The company will reduce its initial investment plans for this year by 20-35%, to EUR800 million – EUR1.1 billion.
OMV Petrom estimates the average crude oil price will be $50-60 a barrel this year.
OMV Petrom reported a net profit of RON2.1 billion in 2014, down 56% from a record RON4.82 billion in 2013. Its sales dropped to RON21.5 billion last year, from RON24.1 billion in 2013.