OMV Petrom : Start of works for the new Polyfuel unit at Petrobrazi Refinery

OMV Petrom Press release

July 19, 2017

OMV Petrom S.A.

 First phase consists of building the foundations

 Investments of approx. EUR 60 mn to build the new Polyfuel unit

This first phase will involve building the foundations; this will require pouring approximately 3,000 cubic meters of concrete and 335 tons of steel.

"The new Polyfuel unit is an ambitious project through which high-end technologies in the refining and petrochemical industry will be available in Romania. The project is going according to plan and we expect the new unit to be fully operational at the beginning of 2019", says Neil Anthony Morgan, OMV Petrom Executive Board member responsible for Downstream Oil.

The Polyfuel unit will allow for a shift in refinery production of up to 50,000 tonnes of LPG components, into gasoline and middle distillates. The project consists of three main reactors, several adsorbers, columns and pumps. The investment budget for this project is approx. EUR 60 mn.

After privatization (2005-2016), investments in the Petrobrazi Refinery have totaled EUR 1.2 billion, of which around EUR 600 mn was invested in the modernization program which took place between 2010 and 2014.

With a refining capacity of 4.5 million tonnes per year, Petrobrazi can process the entire crude production of OMV Petrom in Romania. Petrobrazi refinery currently has an 11.5 Nelson Index1, the largest in the region, capable of processing a large variety of crude.

OMV Petrom is the largest integrated oil and gas group in Southeastern Europe, with an annual oil and gas production of approximately 64 mn boe in 2016. The Group has a refining capacity of 4.5 mn tons / year and operates an 860 MW high efficiency power plant and a 45 MW wind park. The group is present on the oil products retail markets in Romania and neighboring countries through 784 filling stations, as at end March 2017, under two brands - Petrom and OMV. OMV, one of Austria's largest listed industrial companies, holds a 51.01% stake in OMV Petrom. The Romanian state, via the Ministry of Energy, holds 20.64% of OMV Petrom shares, Fondul Proprietatea holds 12.57%, and 15.79% is free float on the Bucharest Stock Exchange and London Stock Exchange.

Starting 2007, OMV Petrom has integrated the principles of corporate responsibility into its business strategy. In this period, the company has allocated approx. EUR 49 mn for the development of communities in Romania, focusing on environmental protection, education, health and local development.

1 The Nelson Index is an indicator used to evaluate the complexity of an oil refinery.

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