OMV Petrom 2030 Strategy: Transforming for a lower carbon future
The world is changing, the energy is changing. While the regional energy demand is growing, so is the need for lower GHG emissions. For this, OMV Petrom is set up to support Romania’s energy transition with investments of about EUR 11 bn by 2030. This is the largest private investment plan in the Romanian energy sector.
Our Strategy 2030, launched in December 2021, has demonstrated its resilience in an unprecedented context of very high volatility, successive health and energy crises and geo-political tensions. Our company remains committed to this path and made some key adjustments aiming at a more rapid build out in renewables, more ambitious targets in e-mobility and clearer capital allocation principles with increased dividend distributions, highly competitive versus peers.
OMV Petrom’s ambition is to lead the energy transition in Romania and South-East Europe, capitalizing on emerging markets opportunities, while delivering value for all its stakeholders.
OMV Petrom 2030 strategy will drive performance through three key pillars:
By 2050, OMV Petrom operations will be carbon neutral (NET ZERO IN OPERATIONS), contributing to Romania’s decarbonization targets.
A greener and more diversified portfolio will be reached by investing in renewable power generation, biofuels, alternative mobility and new technologies. All these will pave the way to achieving Net Zero operations by 2050 and will support our customers to decarbonize.
Approximately EUR 3.7 bn will be invested to ensure cleaner energy for a better life. These investments enable us to achieve the following by 2030:
- The largest solar and wind power portfolio in Romania: installed capacity of ~2.5 GW, of which 60% solar and 40% wind
- A consolidated position as 1st choice mobility provider in Romania: more than 5,000 electric charging points to be installed in Romania and the operating region
- The first major producer of renewable fuels in SE Europe: 300 kt/year production of biofuels and ~15 kt/year production of green hydrogen
- Unique opportunities, in addition to renewables, sustainable fuels, e-mobility, such as: carbon capture and storage (CCS), hydrogen, energy storage, geothermal, biogas
Natural gas is a key enabler for decarbonization. Company aims to increase the share of gas in its portfolio to 70% in 2030. In this regard, Neptun Deep is a strategic project for OMV Petrom, for Romania and for the region.
The extensive knowledge acquired in more than 40 years of operations in the Black Sea can help unlock potential for further growth beyond Romania and position OMV Petrom as the partner of choice in the region.
Neptun Deep entered the development phase, following the final investment decision taken in June 2023. All major execution contracts have been awarded to key companies operating globally. The project is on track to deliver the first gas in 2027, within the initially announced budget of up to EUR 4 bn.
OMV Petrom is also progressing in the Han Asparuh block, Bulgaria, where we have taken over operatorship and we are actively pursuing exploration activities.
More information regarding Neptun Deep can be found on this page.
While demand for green energy grows, traditional energy remains solid due to the gradual transition. Therefore, OMV Petrom will continue to modernize and further integrate current assets, to ensure security of energy supply and generate value.
Investments in Exploration and Production focus on near-field opportunities near existing infrastructure. The company plans to drill around 50 new wells and perform more than 400 workover jobs annually, with the target of lowering annual production decline (excluding Neptun Deep and before portfolio optimizations) to below 5% by 2030.
In Refining and Marketing, Petrobrazi is well-prepared for high utilization rates and shifting production towards higher-value products, focusing on efficiency and sustainability, diversifying non-fuel products and expanding the biofuels value chain.
Regarding the OMV and Petrom filling stations, our long-term ambition is to continue to be the customers’ first choice in Romania, while capitalizing on our position in the other markets where we operate. As a leading provider of products and services for mobility in the region, we aim to drive value through partnerships and increased customer loyalty.
In Gas and Power the company is extending its origination and trading activities, beyond equity gas, to meet increased gas demand. Neptun Deep gas will contribute to a total of approximately 60 TWh in gas sales by 2030. Meanwhile, the Brazi power plant will support Romania’s green power transition, integrating with renewables for a better response to our customers’ needs. Around 30% of the total power sales will be green by the end of the decade, aiding Scope 3 emissions reduction and customers’ transition to cleaner energy.
Sustainability
Sustainability is fully embedded in the business strategy, by running responsible operations, innovation & digitalization and fostering people and communities.
The company supports the Paris Climate Change Agreement and contributes to UN’s 2030 Agenda for Sustainable Development.
On June 19, 2024, OMV Petrom organized an online conference with analysts and investors to provide an update on its Strategy 2030 and transformation journey. For more details, please follow this page.
Disclaimer:
The information herein represents the strategic directions of OMV Petrom and may be interpreted as forward-looking statements subject to uncertainties, risks and regulatory changes which may cause the actual results/performance of OMV Petrom to be materially different. Under no circumstances may be deemed as representation/warranties of OMV Petrom or of its management regarding the company’s’ future results as well as a recommendation/ offer / invitation to subscribe for or purchase any securities.