OMV Remains in Libya, Hedging Risk with Assets in Romania and Norway

Austria’s OMV said it will remain in Libya despite the turmoil that led some oil companies to scale back their investment in North Africa.

“We have been active in Libya for many years and wee see ourselves being active in Libya also in the future,” Chief Executive Gerhard Roiss told Reuters in an interview on Tuesday.

Last week, gas flow form Libya to Italy halved from normal values as protesters shut down a gas pumping station supplying Eni. The situation is not stable and some companies are not willing to take risks in the country. 

Company’s production in Libya came back on stream at the end of 2011 and continued to ramp-up through 2012, despite some interruptions due to civil unrest. Average production over 2012 was about 10% below pre-crisis level.

Production in Libya accounts for about 10% of total group production. 

The company plans to diversify risk strengthening its position in Norway and Romania.