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Libya, Yemen shortfall hits OMV Q2 production | ASHARQ AL-AWSAT English Archive 2005 -2017
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VIENNA, (Reuters) – Unrest in Libya and Yemen hit OMV’s oil production in the second quarter and its refining margin narrowed due to reduced spreads for products such as kerosene and diesel, the Austrian group said on Friday.

OMV’s quarterly production fell to 275,000 barrels of oil equivalent per day (boed) from 304,000 in the previous quarter, it said in a trading statement.

OMV’s Libya production fell sharply after Feb. 20 when turmoil gripped the country. At the centre of OMV’s expanded North Africa operations, Libya provided a tenth of its global output of 318,000 boed last year.

It gave no indication of when production would resume.

OMV said this week that it was preparing to restart production in Yemen after repairs on a pipeline which was damaged in a March attack. Yemen provided 6,600 boed in 2010.

Vienna-based OMV has been seeking Saudi and Kazakh oil to make up the shortfall but analysts expect the production difficulties will affect earnings, due for release on Aug. 10.

The group’s reference refining margin, an indicator of profitability, fell to $1.51 per barrel in the second quarter compared to $2.30 in the previous three months. It was less than half its level a year ago. Total refining sales were 4.61 million tonnes.

OMV also said it would take a 47 million euros ($66.73 million) hit to operating earnings in the second quarter from oil and foreign exchange hedges.