OMV Petrom, the largest energy company in South-East Europe, announced its Strategy 2030, which reflects the company’s growth plans and its commitment towards the energy transition.
OMV Petrom’s strategic ambition for 2030 is to Lead the energy transition in South-East Europe, capitalising on opportunities in our emerging markets, with the objective to secure sustainable long-term economic growth and high cash flow generation, while ensuring investments and attractive shareholder returns.
“Today we are announcing our 2030 Strategy, which will transform OMV Petrom into a lower carbon integrated energy company bringing value to all our stakeholders,” said Christina Verchere, CEO OMV Petrom. “To achieve this, we will invest 11 billion euros by 2030, the largest private investment plan in the Romanian energy sector, with over 35 per cent going to low and zero-carbon opportunities.”
She explained that the strategy is built on three directions: transition to low and zero-carbon, grow regional gas and optimise traditional business. Furthermore, it is expected to have four major outcomes.
“First, it will drive significant growth in cash flows, while developing new businesses such as biofuels, renewable power and future mobility and testing new technologies,” Mrs Verchere pointed out. “Second, it will underpin our highly competitive dividend policy out to 2030, providing our shareholders with 5-10 per cent annual growth in base dividend, and potential distribution of special dividends. Third, it will make a material impact on the transition to lower carbon business and will reduce our carbon intensity throughout all business segments. Fourth, it will strengthen Romania’s and South-East Europe’s security of supply and the EU’s energy resilience.”
“In essence, we will continue to play a fundamental role in supplying energy for Romania – cleaner energy, delivered in a sustainable manner,” she concluded.
Overall, OMV Petrom’s ambition is Net Zero operations by 2050. The company will act on three key areas: decarbonise current operations, expand lower carbon gas business, pursue low and zero-carbon business opportunities. The carbon intensity of its operations is expected to decline by around 30 per cent while the intensity for Scope 1-3 emissions is forecast to drop by around 20 per cent until 2030. The company is also targeting a reduction in its methane intensity to less than 0.2 per cent by 2025, in line with international targets.
The share of gas in the company’s hydrocarbon production mix will increase to around 70 per cent, reflecting the pivotal role of natural gas as a transition fuel in the energy mix in Romania. The increase in equity gas will also support the country’s efforts to decarbonise, as gas can replace coal in power generation and enable the integration of renewable capacities.
To provide customers with a range of lower-carbon energy options in the longer term, OMV Petrom will invest in renewable power and biofuels production. The company will put in function more than one gigawatt (GW) of renewable power capacity in Romania by 2030. Also, the company plans to exceed 15 per cent of biofuel in total fuel production in 2030. A low carbon mobility infrastructure will be developed, with more than 500 points of alternative fuels. This includes the largest network for electric vehicles in OMV Petrom’s operating region by 2030, as well as LNG mobility and CNG investments.
In the second half of the decade, the company will intensify investments to seize opportunities in carbon capture and storage, as well as in hydrogen, which are anticipated to have a significant contribution to the decarbonisation of the country.
Also important, the Neptun Deep development project: subject to Final Investment Decision in 2022/2023, first gas is expected approximately four years later. Projects in the Bulgarian offshore block Han Asparuh and in the Georgian Offshore Block II are also expected to progress while continuing to explore the larger Black Sea region.