Romania, OMV Petrom expects that in 2022 the demand for petroleum products will increase slightly

, SEE Energy News

The largest Romanian oil and gas company OMV Petrom expects that in 2022 the demand for petroleum products will increase slightly, while the sale of natural gas will decrease compared to 2021.

The company further estimates that electricity demand will remain at a level similar to 2021. Last year, electricity production increased to 4.8 TWh, 15 % higher year-on-year, supported by the very good availability of gas-fired TPP Brazi and good margins on average annually. The plant covered 8 % of Romania’s production mix, as it recorded the largest net electricity production to date.

By 2022, OMV Petrom expects the average price of Brent crude oil to be around 75 dollars/barrel, compared to 71 dollars in 2021. Refining margins will increase to almost 6 dollars/barrel In 2021, the refining margin was 5.5 dollars/barrel, up 90 % from the previous year, supported by larger differentials for petroleum products, mainly for petrol. Retail sales were also increased by 12 %, exceeding the pre-covid level.

The value of investments is estimated to increase to more than 800 million euros (560 million euros in 2021), but will depend on the investment climate. About 525 million euros (compared to 400 million in 2021) will be allocated for drilling about 60 new wells and sidetracks, as well as for carrying out about 600 major repairs. The aim is to limit the natural decline in production to about 7 % compared to 2021.

The rest of the investment will go mainly to actions related to the transition to low and zero carbon emissions. By the end of 2022, approximately 100 recharging stations for evehicles will be installed, the first steps will be taken towards the production of secondgeneration bio-ethanol and the development of a renewable electricity portfolio will continue.