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UPDATE 1--OMV production falls on Libya, Kazakhstan
July 23, 2014 / 6:35 AM / 3 years ago

UPDATE 1--OMV production falls on Libya, Kazakhstan

(Adds details on charges, expenses, background)

* Q2 production 297k boe/d vs 311k in Q1

* Refining margin $1.92 vs $1.63 in Q1

* Q2 charges 145 mln euros mainly for Kazakhstan impairment

VIENNA, July 23 (Reuters) - Austrian oil and gas group OMV ’s production fell 5 percent in the second quarter from the first, due to security problems in Libya and technical difficulties in Kazakhstan.

OMV said on Wednesday second-quarter production was 297,000 barrels of oil equivalent per day (boe/d), down from 311,000 in the first quarter and on a level with the year-ago period.

Its refining margin, a key measure of profitability, rose to $1.92 per barrel from $1.63 in the first quarter, thanks mainly to improved gasoline spreads. The figure compared with $2.48 in the second quarter of 2013.

OMV’s oil output in Libya, which accounted for 10 percent of its total production before the 2011 uprising that toppled Muammar Gadaffi, has been virtually nil since mid-March due to protests at major oilfields and ports.

Libya’s oil production fell again this week for the first time since the end of a year-long rebel port blockade in April allowed it to start increasing.

OMV said it would have charges of 145 million euros ($195 million) in the quarter, consisting of a 110 million-euro impairment in Kazakhstan due to unsuccessful field redevelopment results, and an exploration licence write-off in Tunisia.

It also said exploration expenses increased significantly to 180 million euros mainly due to the recognition of unsuccessful wells in Gabon, the Faroe Islands and Norway. In the second quarter of 2013, exploration expenses were 137 million euros. ($1 = 0.7426 Euros) (Reporting by Georgina Prodhan; Editing by Erica Billingham)

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