By John Lee.
In its third quarter results, Austria energy company OMV had the following comments on its operations in Iraqi Kurdistan:
Clean EBIT increased by 28% to EUR 617 million, mainly due to higher sales volumes in Libya and favorable FX effects which more than offset the lower oil price and higher exploration expenses (EUR 179 million vs. EUR 67 million in Q3/11). The latter was mainly driven by the write-off of unsuccessful wells and exploration licenses in the Kurdistan Region of Iraq (Mala Omar and Shorish) and the write-off of an exploration licence in Tunisia (El Hamra).
Production costs excluding royalties (OPEX) in USD/boe decreased by 19% mainly due to positive FX effects and higher production volumes. At Petrom, OPEX in USD/boe was down by 12% mainly due to a weakened RON against the USD. OMV Group’s total exploration expenditure declined by 7% to EUR 107 million as a consequence of less intensive exploration activities in Norway and the UK in Q3/12 which were not counterbalanced by higher activity levels in Tunisia and the Kurdistan Region of Iraq (Bina Bawi).
In the Kurdistan Region of Iraq, extended well test facilities for Bina Bawi are in preparation and production testing for sale in the local market is expected to start in H1/13. Further appraisal drilling is ongoing.
(Picture: Gerhard Roiss, CEO of OMV)