VIENNA, Nov. 6 (UPI) -- A slowdown in Libyan output, coupled with declining oil prices, means it's time to review the pace of investments, the head Austria's OMV said Thursday.
The oil and gas company said it would focus more on exploration and production moving forward, while streamlining some of its refinery operations. The decline in oil prices, in addition to less-than-ideal production growth from Libya, gave Chief Executive Officer Gerhard Roiss something to consider.
"In order to reflect a more challenging operating environment, especially the softness in the oil price together with the unpredictability of our Libyan production, which is adversely impacting the Group's cash flow, we have decided to review the pace of our investment program for the next two to three years," he said in a statement.
Crude oil prices have shed about 20 percent of their value since June as supply and demand scenarios shift in response to gains in North American oil production and slowed economic recovery.
Other major oil and gas companies have said they were committed to the long-term strategies despite recent market movements.
Libyan oil production of around 800,000 barrels per day is about 45 percent above midsummer levels and close to two-thirds its optimal rate.
Security issues present stability challenges for the Libyan oil sector. On Thursday, militants closed operations at the Sharara oil field in the western Libyan desert. It has the capacity to produce 350,000 bpd and Thursday's incident is at least the second time bandits have shut in the field this year.
OMV said the Libyan security situation remains "very difficult to predict." Production for the first nine months of the year was around 9,000 barrels of oil equivalent per day.
Elsewhere, OMV said its Norwegian operations was boosting by production from the Gudrun field, which should produce as much as 184 million barrels of oil and gas equivalent over its lifespan.
"We will continue to deliver on our commitment to profitable growth," Roiss said.
