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More upstream focus says OMV
Posted 22.09.2011 12:14:31 av John Bradbury
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Austria's OMV has pledged to focus more on upstream exploration in a simplified growth strategy outlined today.

Downstream operations will be maintained but there will a shift away from refining and marketing towards growth in gas and power instead.

Introducing the moves in a strategy update in Istanbul today chief executive Gerhard Roiss said his company has decided to refocus after a strategic review lasting several months.

“We aim to be a focused, integrated oil and gas company with improved profitability and strong growth in upstream. Exploration and production of oil and gas offers significant growth potentials and attractive returns,” the OMV chief has declared.

He says OMV will become an integrated gas business from the production site to European markets, which he said will strengthen the company's role in the European gas business.

“As a consequence, we will gradually shift the portfolio from Refining and Marketing to Exploration and Production and to Gas and Power. While Refining and Marketing will continue to be an important business segment for OMV, the exposure to the segment will be adjusted reflecting the challenging oil downstream environment.”

Roiss declared his belief that the new strategy will “....Herald a new period of focused, more integrated growth.”

Backing up its plan, OMV says it will be introducing a new performance improvement programme to increase return on average capital employed (ROACE) by 2% by 2014. “The programme will target margin improvements, cost reduction and capital management.”

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