PETB.L Regulatory News (PETB)

OMV Petrom

New innovative Polyfuels technology at Petrobrazi Refinery

u Investment of approx. EUR 60 mn

u Polyfuels unit will allow conversion of LPG components into gasoline and middle distillates

u New unit expected to be fully operational beginning of 2019

OMV Petrom, the largest oil and gas producer in Southeastern Europe, announces approx. EUR 60 million investment for a new unit to be built in the Petrobrazi Refinery, based on innovative Polyfuels technology developed by French company Axens. The new unit, expected to become fully operational at the beginning of 2019, allows the conversion of LPG components into gasoline and middle distillates, using a catalytic process.

"The implementation of the Polyfuels project, which uses innovative technologies to increase gasoline and diesel production, will give us a competitive advantage through increased output of high value products (white products) and a more flexible production structure", said Neil Anthony Morgan, OMV Petrom executive board member responsible for Downstream Oil.

The Polyfuels unit will allow for a shift in refinery production of up to 50,000 tonnes of gasoline and middle distillates from LPG components. The overall refinery capacity will remain at 4.5 million tonnes/year.

This new unit is based on the innovative PolyFuel® process, a technology which was developed by Axens, based on 50 years of commercial experience in the field of olefins conversion into fuels, having a track record of being a safe and clean technology.

The project consists of three main reactors, several adsorbers, columns and pumps. Due to the proper selection of main equipment and several heat-exchangers, the unit is designed for high energy efficiency. Construction is set to start in 2017; the unit is expected to be fully operational at the beginning of 2019.

About Petrobrazi

After privatization, investments in the Petrobrazi Refinery have totaled EUR 1.2 billion (2005-2016), of which around EUR 600 million was invested for 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. The refinery currently has an 11.5 Nelson Index[1], the largest in the region, being capable of processing a large variety of crude oil.

About OMV Petrom

OMV Petrom is the largest integrated oil and gas group in Southeastern Europe, with annual oil and gas production of approximately 64 mn boe in 2016. The Group has a refining capacity of 4.5 mn tonnes / 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 783 filling stations, end 2016, 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 in free float on the Bucharest Stock Exchange and London Stock Exchange.

Contact:

OMV Petrom Investor Relations

Tel: +40 372 161 930E-mail: investor.relations.petrom@petrom.com