OMV - Rohölsteuerung zu den Raffinerien · Downstream Oil - Value Chain figures of 2017 . 6 . 2017 figures. 53 % Wholesale2.2 . 47 % Captive market . 4. Customer allocation in %

OMV Downstream

OMV - Rohölsteuerung zu den Raffinerien WKÖ - Wien, 5. Dezember 2018

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Agenda

OMV Downstream, WKÖ – Rohölsteuerung zu den Raffinerien, M. Roitsch, 5. Dezember 2018 2

1 Downstream Oil – Facts & Business model

2 Supply Chain Planning, Optimization, Scheduling & Execution

3 From where & how crude oil travels to the refineries

4 Q & A

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OMV – a strong, integrated oil and gas company

3 OMV Downstream, WKÖ – Rohölsteuerung zu den Raffinerien, M. Roitsch, 5. Dezember 2018

Upstream Downstream

Exploration Development Production Downstream Gas

Downstream Oil

Value over volume growth Restructure and grow volume

Strong cash generator

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OMV Downstream in a nutshell 2017

~35% Petrochemicals

~50% Fuels

~15% Gas 17.8 mn t

Refining capacity

2.5 mn t

Petrochemical capacity

0.4 Lost Time Injury Rate

2,039 Retail sites

11 bcm

Gas sales

36% Share in Borealis

Downstream Company of the Year 1

Focus on Europe

EUR 1.8 bn Clean CCS

Operating Result

Schwechat refinery, Austria

1 Awarded by Petroleum Economist in 2017

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Downstream Oil - Business model


Distribution Product Supply

Production Sales

Crude Supply

Crude Supply Seaborne

Refineries

Truck

Rail, Barge, Truck

Product Supply Inland

Product Supply Seaborne

Petrochemicals Pipeline

Equity Crude Marketing

Other Feedstock/ Components

Equity / 3rd party Crude

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Downstream Oil - Value Chain figures of 2017

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2017 figures

53% Wholesale

47% Captive market 4

Customer allocation

in %

Crude supply Refinery production

Product supply and logistics

Petrochemical/ commercial/ retail sales

Equity crude production

4.3 mn t

Crude from third parties

11.7 mn t

Crude oil refining 16.0 mn t 1 Storage Rail/truck/ship

Retail 6.2 mn t

Business- to-business

9.5 mn t

Aviation 1.9 mn t

Petrochemicals 2.2 mn t

OMV Petrol Ofisi 3 4.0 mn t

3 OMV Petrol Ofisi divested in June 2017 4 Retail and petrochemical sales

Purchase of finished products

4.0 mn t 2

(90% utilization rate of 17.8 mt refining

capacity 2)

1 Internal consumption to be deducted. 2 Volume includes blending components and excludes purchase of products for OMV Petrol Ofisi

Purchase of semi-finished products

1.5 mn t 1

OMV Downstream, WKÖ – Rohölsteuerung zu den Raffinerien, M. Roitsch, 5. Dezember 2018

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Agenda





4 Q & A

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Downstream Oil – Business characteristics


Refining & Petrochemicals Retail Sales Crude Supply & Trading Supply & Logistics

buy buy

execute

schedule

plan

optimize

refinery production crude supply logistics product supply sales

highly volatile prices commodity markets co-production long lead times

active risk management integrated planning efficient deviation mgmt. group margin maximization

Our main challenges:

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Downstream Oil – Supply Chain Planning



buy buy

execute

schedule

plan

optimize


crude & feedstock availabilities and compulsory stock

obligations

sales demand forecast (incl.term/spot flexibilities)

refinery unit capacities & constraints product availabilities logistic capacities &

constraints

crude quotations product quotations product cracks market analyses

crude logistic costs

crude differential product differential

product differential

product differential costs/prices

capacities/ volumes

product logistic costs

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Downstream Oil – Supply Chain Optimization



buy buy

execute

schedule

plan

optimize


crude & feedstock supply product demand Refinery production

(make) 3rd Party product

supply (buy)

distribution

Optimization goal: to maximize the Downstream Oil contribution margin by balancing Supply Chain resources with Supply Chain requirements across the whole OMV Supply Chain network within given flexibilities and constraints.

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Downstream Oil – Supply Chain Scheduling



buy buy

execute

schedule

plan

optimize


schedule ship by ship crude deliveries

schedule customer & filling station specific product

sales

schedule crude/FS & unit by unit refinery production

and liftings schedule 3rd party supply contracts

schedule barge, train and truck deliveries

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Downstream Oil – Supply Chain Execution



buy buy

execute

schedule

plan

optimize


buy

execute ship by ship crude deliveries

execute customer & filling station specific product

sales

execute crude /FS & unit by unit refinery production

and liftings execute 3rd party supply contracts

execute barge, train and truck deliveries

Crude STO

PChem STO

Product STO

STO ... short term optimization

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Agenda





4 Q & A

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From where our crude oil travels … / Our crude oil imports to Austria & Germany 2017


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How to solve the challenge of “the right“ crude selection … / Case by case & step by step


Several optimization tools (LP tools) support the crude selection process in order the choose from ~200 available crude oils

► Weekly Production Plan

► Ad-hoc crude & feedstock scenarios

► Crude Netback list

Integrated Monthly plan

Monthly Activities

Fix supply & demand structure

according final planning result

Update crude diff’s, freights, quotations,

availabilities & purchased cargos

Run WPP crude & feedstock cases &

Netback’s

Decide on best alternative crude

vs. Standard Basket grades

Weekly Activities

KEY FIGURES

Crude optimized 12mto paScenarios evaluated ~1.000 paCases calculated ~200 pw

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The challenge of crude timing & scheduling …


TRADING WINDOW North Sea ETA B/L

10–30 d 10–14 d

Pricing 5 after B/L

P 7-30 d

Libya ETA B/L 5–7 d

30-45 d TRADING WINDOW

P 4 d 7-30 d

Pricing Month avg.

TRADING WINDOW Black Sea ETA B/L

20–30 d

2–3 d

P 7-30 d

Pricing 5 after B/L

West Africa ETA B/L 20–25 d

50-65 d TRADING WINDOW P

16-20 d 7-30 d

Pricing 5 after B/L

B/L

Loadport

ETA

Trieste

P

Refinery

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When the decision is taken First the crude travels with a vessel …


More than half of all produced crude oil is shipped by vessel

Around 500 vessels p.a. to Trieste

Most crude oil passed through few critical points

Vessels are chartered based on a World scale rate

There is a market for chartering, i.e. price of transport can be different for each shipment

We carefully check every vessel ( vetting) if it complies with our high standards

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Second the crude travels via pipeline …

OMV Downstream, WKÖ – Rohölsteuerung zu den Raffinerien, M. Roitsch, 5. Dezember 2018

Constanta

TAL (25%)

Betriebsbeginn: 1967

Kapazität (Mio t): 42 OMV: 12

Länge (km): 753

Tanks: 39

Shareholder: 10

AWP (100%)

Betriebsbeginn: 1970

Kapazität (Mio t): 8

Länge (km): 420

Tanks: 5

Shareholder: 1

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TAL


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Agenda





4 Q & A

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Question & Answer


Dipl. Vw. Mario Roitsch Head of Short Term Planning & Scheduling

Phone +43 (1) 40440-23318 Fax +43 (1) 40440-623318

[email protected] http://www.omv.com

http://www.omv.com/

OMV Aktiengesellschaft

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Legal Disclaimer


This presentation is prepared in order to outline our expression of interest. Nothing in this presentation shall be construed to create any legally binding obligations on any of the parties. Neither party shall be obligated to execute any agreement or otherwise enter into, complete or affect any transaction in relation to this presentation.

All figures and information in this presentation are strictly confidential, they are by no means binding and thus indicative only.

© 2018 OMV Aktiengesellschaft, all rights reserved, no reproduction without our explicit consent.

OMV Downstream

Kontakt OMV Downstream

Trabrennstrasse 6-8 1020 Wien

Dipl. Vw. Mario Roitsch [email protected] www.omv.com www.omv.com/socialmedia

Documents

OMV - Rohölsteuerung zu den Raffinerien · Downstream Oil - Value Chain figures of 2017 . 6 . 2017 figures. 53 % Wholesale2.2 . 47 % Captive market . 4. Customer allocation in %