Downstream Oil

presentation
November 24th, 2015
OMV Petrom: strength of integration
FIGURES AS OF 2014

Upstream Downstream Oil

100% of the oil ► Petrobrazi refinery
processed at (4.5 mn t/yr capacity)
Romania Petrobrazi ► 3.4 mn t marketing sales
► 3,9 mn toe/yr crude oil and NGL ► 780 filling stations (Romania, Bulgaria,
► 5.3 bcm/yr gas Serbia, Moldova)
► 671 mn boe proven reserves
(~10 yrs of current production)

Downstream Gas

Up to 20% of ► Gas sales 4.4 bcm/yr (up to 40% of

gas used in
CCPP Brazi
Romanian demand)
Kazakhstan ► Brazi gas-fired power plant (860 MW)*
► 0.4 mn toe/yr crude oil and NGL ► Dorobantu wind park (45 MW)*
► 0.05 bcm/yr gas
► 19 mn boe proven reserves
* Starting with 1st of July, 2015, assets are operated by Downstream
Oil; only electricity market related activities remain in Downstream
Gas

2 | OMV Petrom, Downstream Oil, November 24th, 2015

 Downstream Oil’s value chain

Crude
Crude
Purchase
Crude Oil usage
Products Product
Product
Sale $
Stock SF & RM
Stock
Purchased from usage
Upstream (100%)
or from other
suppliers Refinery Sale via
• Retail
other raw materials
Semi finished (SF)

Trade goods
• PSS
• Export
&

$ $

$ = Cash in / out

3 | OMV Petrom, Downstream Oil, November 24th, 2015

Downstream Oil:
Strong focus on safety and efficiency

HEALTH
 Downstream Oil LTIR*, below the
international benchmark levels

SAFETY  Safety programs along the value chain

involving both employees and
contractors
SECURITY  Significant reduction of GHG**
emissions: ~10% reduction of CO2
emissions in 2014 vs 2010 (yoy)
ENVIRONMENT
* Lost time injury rate (employees and contractors)
** GHG – Green House Gas

4 | OMV Petrom, Downstream Oil, November 24th, 2015

Strategy 2021:
Sustainable Performance for Growth
Position for long-term growth
B 2015+ Strategic directions remain…but pace depends on market fundamentals and investment friendly environment
A 2012-2014 Delivered
Upstream ▪ Stabilize production ▪ Increase ultimate oil and gas recovery
through field redevelopment, drilling, workovers ▪ Explore and appraise Neptun block (Black
▪ Continue with operational excellence Sea deepwater)
▪ Optimize E&P portfolio through partnerships
▪ Explore deeper and frontier hydrocarbons

Downstream Gas
▪ Bring Brazi CCPP on stream ▪ Optimize across commodities and leverage
▪ Enhance value of equity gas by strengthening the evolving regulatory framework
gas sales

Downstream Oil
▪ Modernize/improve efficiency of Petrobrazi ▪ Enhance value of integrated downstream
refinery ▪ Optimize business portfolio
▪ Revamp fuel storage network

People. Develop and empower human capital to achieve operational excellence and growth
Resourcefulness. Create shared value with stakeholders for long-term sustainable growth, having high safety and environmental standards.

5 | OMV Petrom, Downstream Oil, November 24th, 2015

Strategic direction Downstream Oil
Main Targets Challenges
 Further optimization of product mix to meet  Fuel margins under pressure due to increased
market demand competition
 Improve refinery energy efficiency*  Address market’s need for innovation
 Supply chain optimization  Maintain customer loyalty in a competitive
market through prime products and services
 Maintain market share in the retail business

Key Projects
 Further improve refinery yields (maximize diesel /minimize fuel oil production) and energy
efficiency at refinery (heat integration in units, mounting floating membranes and double sealing on
the products tanks, etc)
 Two brands retail strategy (international premium brand - OMV, and the national Romanian brand -
Petrom, positioned as value-for-money brand)
 Focus on providing best-in-class customer services as well as further diversifying the existing
range of customer services

* Starting with 1st of July, 2015, Downstream Oil operates also the Power
Plants which are in Downstream Gas’ portfolio
6 | OMV Petrom, Downstream Oil, November 24th, 2015
Petrobrazi is a sweet heavy crude coking refinery
with a high upgrading capability
► Established in 1936
► Sweet heavy crude coking refinery
► Complex fuel production facility (Nelson index of 12)
► Major units:
► 4.5 mn t/y crude distillation
► 1.78 mn t/y Fluid Catalytical Cracker
► 1.08 mn t/y delayed coker
► 50 MW cogeneration plant
► Diesel Hydrotreater revamp started up at the end of 2007 (10 ppm diesel production)
► Gasoline post-treater completed early 2009 (10 ppm gasoline)

Petrobrazi modernization program (2010-2014)

► Revise capacity of crude distillation unit (DAV2) to process 100% Romanian crude while ensuring improved yields and energy
efficiency
► Coker modernization by replacing equipment and therefore ensuring increased throughput and reduced energy consumption
► Desulphurization of refinery gases leading to improved energy efficiency and mapping Petrobrazi emissions to Western Europe
standards
► Vacuum gasoil project to increase diesel and other white products production capacity

7 | OMV Petrom, Downstream Oil, November 24th, 2015

Petrobrazi clean-up program magnitude
Total
Indicator Equivalent ~
2008-2012
Scrap iron, out of which: 86,175 to 12 x Eiffel Tower
- Dismantled pipes (in 4“ equivalent) 2,766 km 3 x BUC-VIENA
- Insulation metal sheets 391,916 m2 52 x Football fields
Stainless Steel 8,840 to Equivalent of 2
Arpechim refineries
Concrete 551,154 to Burj Dubai building
Pipe sleepers cleaned under 26.86 km
Shrubbery removal 330.38 ha Las Vegas area
Removal mineral wool 109,550 m3
Gravels obtained from concrete crusher 139,211 m3 12m wide road Pbz-Buc

Petrobrazi
refinery
before
/after
clean-up

8 | OMV Petrom, Downstream Oil, November 24th, 2015

Terminals and filling stations network
Optimized and modern terminals network

Jilava old Terminal Jilava new Terminal

OMV Petrom filling stations network

780 filling stations in

Romania, Bulgaria,
Serbia and Moldova

9 | OMV Petrom, Downstream Oil, November 24th, 2015

 Thank you!

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