OMV Petrom expects lower sales revenue following drops in sales of oil and natural gas, lower trading prices and lower volumes of electricity and oil product sales.
The company’s budget was built considering an average price f $60/barrel for Brent oil. The price is currently at $28/barrel after OPEC and Russia failed to reach a deal at the beginning of March on lowering oil production in response to reduced demand amid the coronavirus pandemic.
“Excess production and heightened uncertainty in the global economic environment will lead to increased market volatility in upcoming months,” OMV Petrom noted.
Petrom plans to invest RON4.8 bvillion in upstream in 2020, making up 84% of its total investment budget. It plans to invest RON870 million in downstream.