Investing in S EE – OMV´ s Approach for the Region

OMV Gas

Move & More.

Investing in SEE – OMV´s Approach for the Region

Athens, November 3rd, 2005

2 |OMV Gas, Michael Woltran, November 3, 2005

Investing in SEE – OMV´s Approach for the Region

OMV´s strategic development path

Materializing OMV´s strategy

Preconditions and environmental requirements


OMV Strategy 2010

OMV is the most successful company in capitalizing on the EU „growth belt“ in oil and gas and securing the future supply through a strong upstream position.


OMV Develops Along the EU Growth Belt

Mature Markets East- EuropeanGrowth Belt

Expand from mature into growing markets

Increase the lead to other regional competitors

Further boost profitability potential

Continued growth


Petrom Acquisition in December 2004

OMV acquired 51% of Petrom with immediate control 33.34% of Petrom from Government for EUR 669 mn Increased to 51% via simultaneous issue of new shares

for EUR 830 mn Capital increase remains in Petrom for future CAPEX

Government indemnity for historic contamination Agreement provides scope for rationalisation Contractual fiscal stability in upstream Petrom’s new shareholder structure

State40.74%

EBRD2.03%

Free Float6.23%

OMV51.00%


Petrom – A Perfect Strategic Fit

Bulgaria

Arpechim3.5 mn t Petrobrazi

4.5 mn t

Serbia

Romania

New refining capacity in the East of D-13

Daily oil and gas production of 217,000 boe/d (6m/05)

50% oil – 50% gas Oil and gas reserves of 1,025 mn boe

(Dec. 31, 2004) 60% oil – 40% gas

670 retail stations Market share in Romania >30%

Through the acquisition of 51% of Petrom, OMV became the undisputed leading integrated oil and gas group in Central and Eastern Europe

Gas Sales of around 6 bcm (2005 estim.) 35 % of Romania´s primary energy consumption

covered by natural gas Increasing demand (from18,5 bcm in 2005 to 20,5 bcm

in 2015)


Nabucco - Project Partners

OMV - OMV Gas GmbH, Austria

MOL- MOL Natural Gas Transmission Ltd., Hungary

Transgaz- S.N.T.G.N. Transgaz S.A., Romania

Bulgargaz- Bulgargaz EAD, Bulgaria

BOTAS- Botas Petroleum Pipeline Corporation, Turkey


Nabucco Gas Pipeline Project Strategic Goals of Project

Opening a new gas supply corridor for Europe from Middle East and Caspian regions

Raising transit profiles of participating project countries

Contribution to security of supply for partner countries and for Europe as a whole

Strengthening the turntable position of Austrian pipeline grid and the Hub Baumgarten within the European network


2008 2009 2010 2011 2012 2013 2014 2015 2016

Feasibility Study Phase – Findings Technical Study

3,300 km + Compression

Capacity: up to 25.5 bcm

Construction

O p e r a t i o n


Nabucco Gas Pipeline Project Next Steps Within the Development Phase

Prequalification for Tender process for the Basic and Detail Engineering

Working program for EIA/SIA together with IFC, EBRD, EIB

Application for exemption to safeguard the economics of the project on the basis of EU Directive and / or ECSEE Treaty

Extension of the Nabucco Consortium by one or more additional shareholder

Start of negotiations transportation contracts


Key Success Factors for Investments in SEE (1)

Harmonize legal framework in SEE To reach a sound investment climate in the region To establish a common European framework – jointly

approach for all EC 25

Stabile and predictable investment conditions Long term investments in infrastructure projects need

sufficient reliability for the investors- clear definition of interest rate level to safeguard the

economics of the project- security about negotiation principles and -structure

Exemption and Intergovernmental Agreement


Key Success Factors for Investments in SEE (2)

Complex transformation process of societies in SEE Alignment of the former communist society systems –

democratization and privatization – to the EC legal system in all areas

Cooperation to create win-win-situations Investments in SEE economies Modernization of existing / creation of new infrastructure Enhance integration of EC energy market – new transit

routes Increase security of supply

Investing in S EE – OMV´ s Approach for the Region

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