Page 19 - EurOil Week 01 2021

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OMV bucks trend with petchem focus

AUSTRIA WHILE many of the world’s leading oil and gas from crude oil. The company has a clear com-
producers are moving into renewables, Austria’s mercial rationale for doing this: it anticipates
Many of its peers OMV is bucking the trend by expanding its pet- stronger demand for these products, but it has
are going down the rochemicals business. also framed the move as a means of reducing
renewables route. The company closed the $4.7bn purchase its emissions.
of an extra 39% stake in petrochemicals group Oil and gas that is used to produce plastics
Borealis in October from Abu Dhabi state inves- is responsible for fewer emissions, as hydrocar-
tor Mubadala. But it will hold off on any other bons are not combusted. OMV will increasingly
acquisition deals until 2022, its CEO Rainer Seele use less oil as its petrochemical feedstock while
told Reuters in mid-December. increasing the use of bio-supplies, he said. The
The takeover has given OMV greater say company also aspires to become a market leader
over the Ruwais complex in the UAE, poised in converting plastic waste back into oil.
to become the world’s largest integrated refin- OMV has also made a number of divestments
ing and petrochemicals hub, where Borealis is – most recently the sale of 285 filling stations
partnered with state-owned ADNOC. Seele also in southern Germany to UK operator EG for
pointed to Borealis’ technology credentials as a €485mn ($588mn). Again, its strategy contrasts
key strength. with those of its competitors, which are building
“Borealis is a technology leader with the Bor- up their fuel retail networks.
star technology ... They have the in-house tech- “Anti-cyclical decisions are sometimes very
nology, they are not licensing it out,” he said. brave and successful,” Seele said. OMV’s German
The Austrian firm has meanwhile shunned filling station network has little synergy with the
investments in renewables, which have been a refinery it owns in the country, which mostly
key focus of its European peers BP and Equinor. produces petrochemicals and jet fuel.
“Do I understand the power market bet- The company also agreed to sell its remaining
ter than E.ON or RWE? Definitely not,” Seele 51% interest in Austrian transmission system
explained. “When I look into my transformation operator (TSO) Gas Connect Austria in Septem-
into chemicals, I can tell you, I have lots of com- ber to the country’s biggest power firm Verbund
petitive advantages.” for €271mn. Verbund will also assume Gas Con-
As OMV focuses more on petrochemicals nect’s liabilities to OMV, which totalled €166mn
as well as natural gas, it is also shifting away at the end of 2019. ™

Week 01 07•January•2021 www. NEWSBASE .com P19