In the fourth quarter of 2021, demand for OMV Petrom products has already returned to pre-pandemic levels. Against this background, the company expects that in 2022 the demand for petroleum products will increase slightly, while the sale of natural gas will decrease compared to 2021.
Electricity demand will remain at a level similar to 2021, the company estimates. Last year, electricity production increased to 4.8 TWh, 15% higher, “supported by the very good availability of the Brazi plant and good margins on average annually.” The plant covered 8% of Romania’s production mix, said OMV Petrom, as it recorded the largest net electricity production to date, its technical capabilities allowing it to make “a very important contribution to the balancing markets and system technical services”.
By 2022, OMV Petrom expects the average price of Brent crude to be around 75 dollars per barrel (USD/bbl), compared to 71 USD/bbl in 2021. Refining margins will increase to almost 6 USD/bbl. In 2021, the refining margin was 5.5 USD/bbl, up 90% from the previous year, supported by “larger differentials for products, mainly for gasoline”. Retail sales were also up 12%, exceeding the pre-COVID level.
The value of investments is estimated to increase to 4 billion lei (2.8 billion lei in 2021), but will depend on the “investment climate”. About 2.6 billion lei (compared to 2 billion lei in 2021) will be allocated for drilling about 60 new wells and sidetracks, as well as for carrying out about 600 major repairs. The aim is to limit the natural decline in production to about 7% compared to 2021.
Portfolio optimization will continue through selective field sales in 2022, reflecting the focus group’s strategy on “the most profitable barrels”.
The rest of the investment will go mainly to actions related to the transition to low and zero carbon emissions. By the end of 2022, approximately 100 recharging stations will be installed, the first steps will be taken towards the production of second-generation bio-ethanol and the development of a renewable electricity portfolio will continue.