OMV’s revamped brand identity puts focus on sustainability

Austria’s oil and gas player OMV has revealed a new brand identity highlighting sustainability and circularity embodying the company’s ambition to become net-zero by 2050. In addition, it provided an update on its Strategy 2030.

The Austrian firm presented its updated brand identity, developed in partnership with the international branding agency Interbrand, at its Capital Markets Day event on June 13, 2024, in London.

According to OMV, the new brand identity incorporates the purpose of re-inventing essentials for sustainable living while evolving to become an integrated sustainable chemicals, fuels, and energy company. The rebranding is said to be in line with its Strategy 2030.

OMV’s Executive Board Chairman and CEO, Alfred Stern, remarked: “Our new corporate identity complements our strategy implementation with a strong and cohesive visual emphasis on our strategic agenda and goals of the Group. OMV is undergoing the biggest transformation in the company’s history.”

The company explained that the new symbol is meant to represent OMV’s continuous motion and progress, as well as a forward-looking and future-oriented attitude anchored in sustainability and circularity.

“As we make significant strides with our transformation lighthouse projects today, we proudly unveil our new brand identity underpinning our aspiration and core beliefs as an international company at the forefront of shaping a more sustainable future. ‘Forward for Good’ underlines our responsibility to society as well as OMV’s path to becoming a net-zero company,” noted Stern.

The firm also announced a progress update of its Strategy 2030 as it strives to reach net-zero by 2050. Following its launch in March 2022, the company presented a new corporate structure later that year to accommodate the ambitions set forth in the strategy. Three business segments were established: Chemicals & Materials, Fuels & Feedstock, and Energy to enable the company to become an integrated sustainable fuels, chemicals, and materials company.

On that occasion, OMV also announced that it would focus more on circular economy solutions and build a low-carbon business in the energy sector, including geothermal energy and carbon capture and storage (CCS).

OMV underlines its efforts to diversify its supply of non-Russian gas and the divestment of its Malaysian exploration and production (E&P) assets. In February, the firm agreed to sell its stake in its Malaysia-based joint venture with Sapura Energy, SapuraOMV, to TotalEnergies.

Furthermore, its subsidiary OMV Petrom made a final investment decision (FID) on the Neptun Deep project, enabling the natural gas project in the Black Sea to move forward.

Regarding its attempts to curb greenhouse gas (GHG) emissions, OMV shared that a 25% reduction was recorded compared to the 2019 baseline in Scope 1 and 2, and a 10 % reduction in Scope 3. Furthermore, the company’s methane intensity, alongside flaring and venting, decreased by 70% compared to 2019.

These developments are said to be driven by the overall improved energy and operational efficiency, paired with a decrease in routine flaring and venting. The improvement in Scope 3 is explained by higher petrochemical production and lower fossil fuel sales.

OMV CEO pointed out: “We will stay agile in the face of the evolving macro-economic environment and move steadfastly ahead with Strategy 2030. Our key priorities will be on maximizing cash generation from our current core activities, growing our chemicals business, transforming OMV Petrom into an energy transition leader in Southeastern Europe (SEE), and firmly establishing OMV as a frontrunner in geothermal energy, SAF and circular chemicals.”

Energy: Refocusing portfolio on Europe

The foundation of OMV’s Energy strategy entails the shift in its focus on Europe and the development of its low-carbon business (LCB), in addition to actively managing the traditional E&P portfolio to deliver resilient cash flow. In the period up to 2030, Brent Oil price is expected to average at $80/bbl, up from the previously anticipated $70/bbl, and gas price at €25-30/MWh, an increase from the previously expected €24/MWh.

The firm’s target of producing about 350 kboe/d in 2030 remains unchanged, with a higher gas weighting of 60% underlining the importance of this bridging fuel. OMV intends to refocus its portfolio on three regions: North – which is Norway, Central Eastern Europe, representing mature fields in Austria and Romania, but also growth opportunities in the Black Sea, and South, encompassing North Africa and the Mediterranean.

One of the cornerstones of this energy strategy is delivering the Neptun Deep project, which is described as the largest natural gas offshore project in the European Union (EU). OMV Petrom, as its operator, holds a 50% share in the €4 billion project. The Austrian player confirmed that over 90% of the CAPEX has been contracted. With the permitting process underway, drilling is scheduled for 2025 and the first gas is expected in 2027.

Romania will also play a key role in OMV’s LCB strategy for renewable power as the sixth most populated country in the European Union, which is also perceived to be one of the fastest growing in terms of GDP. OMV Petrom will continue to invest in renewable power in the country, while targeting renewable opportunities in neighboring Serbia, Bulgaria, and Hungary.

A little over a month ago, the company joined the Oil & Gas Methane Partnership (OGMP 2.0) of the United Nations Environment Programme (UNEP) which aims to improve the accuracy and transparency of methane emissions reporting. The partnership is meant to enable energy companies to cut their methane footprint.