OMV reports strong profits on Libyan oil

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VIENNA, Aug. 8 (UPI) -- Despite a volatile economic and political climate, Austrian energy company OMV reported strong performance for the year in part on Libyan oil production.

OMV reported an 82 percent increase in operating profit in part because of a production level in Libya that was close to pre-war levels.

OMV said its crude oil production in Libya was around 50 percent -- roughly 17,000 barrels per day -- of pre-war levels by the end of December. In its Wednesday announcement, the company said sales of Libyan crude oil exceeded production levels because of the build-up of inventories in the country.

Overall oil production was up 4 percent because of production in Libya, "which is now close to pre-crisis levels and was missing in (the second quarter of 2011) due to the armed conflict in the country," the company said.

European production of natural gas for the company, however, was down 1 percent compared with last year. OMV Chief Executive Officer Gerhard Roiss said in a statement that he was upbeat on gas projects given the recent decision on the Nabucco West pipeline planned from Azerbaijan.

"In the first half year of 2012, we continued our strong operating performance despite a very volatile political and economic environment," he said. "The implementation of our strategy which focuses on growth in upstream is taking shape."