The general manager of OMV, Rainer Seele, warned that the current program to reduce costs is not enough at an oil price of 30 dollars per barrel, especially since the group has production costs 10% higher than the competition, writes Agerpres.

“We have started 2014 with a significant austerity program called ‘Fit for Fifty’. But this is not enough given that oil price is 30 dollars per barrel. For that, for the moment I am not mainly interested in the Russia subject, but in reducing costs”, Rainer Seele said. The new cost reduction program will be presented on February 18. Layoffs cannot be excluded in such a pricing environment”, said the high representative of OMV.

OMV Board of Directors will follow a pivoting of activities to regions that are profitable even if the prices continue to decline. “These are the Middle East with Abu Dhabi and Iran, as well as Russia. In these regions we can make solid businesses even if oil prices fall to 15-20 dollars”, Rainer Seele said.

Regarding the much-discussed exchange of assets with Gazprom, OMV general director said that the talks are just beginning.