- Arbitration of OMV against Gazprom Export under ICC Rules concluded on November 13, 2024
- OMV is asserting arbitration-awarded rights for damages amounting to EUR 230 million plus interest and costs
- Claims for damages will be offset against OMV’s payment obligations to Gazprom Export from the Austrian delivery contract with immediate effect
- Extensive diversification measures enable supply security for OMV customers in the event of an interruption in Russian gas
OMV today announces an arbitration award under the rules of the International Chamber of Commerce (ICC) relating to the irregular deliveries of Gazprom Export and the complete cessation in Germany in September 2022. In order to protect the claims against Gazprom Export, OMV Gas Marketing & Trading GmbH (hereinafter: OGMT) initiated arbitration proceedings in January 2023.
OMV made the decision to claim the damages awarded by the arbitration court in the amount of EUR 230 million plus interest and costs, which contributes positively to compensating for the financial damage incurred in 2022. OMV is taking the necessary steps to implement the claim for damages with immediate effect. OGMT confirms that the awarded damages have been offset against the liabilities arising from the Austrian gas supply contract between OGMT and Gazprom Export. This offsetting would result in an increase in OMV’s adjusted CCS operating profit and operating cash flow.
The implementation of the claim for damages is expected to have a possible negative impact on the contractual relations under the Austrian supply agreement between OGMT and Gazprom Export, including a potential cessation of gas deliveries. In such a case, small one-off hedging losses could occur, although the positive effects of the damages awarded will clearly outweigh the positive effects.
With a consistent diversification strategy, OMV has successfully built up an extensive alternative gas supply from non-Russian gas as well as additional gas supply capacities. OMV’s gas portfolio includes different supply sources from Norway and additional long-term LNG volumes. OMV confirms that the company can supply its customers with the contractually guaranteed gas volumes even in the event of a possible supply interruption by Gazprom Export. The OMV gas storage level is currently over 90 percent.
The potentially affected gas volume for the Austrian Virtual Trading Point (VTP) is estimated at 7,400 MWh/h (approx. 5 TWh per month).
About OMV Aktiengesellschaft
Our corporate purpose is to reinvent the foundations for sustainable living. OMV is transforming into an integrated sustainable chemicals, fuels and energy company with a key role in the circular economy. By gradually transitioning to a low-carbon business, OMV aims to achieve net-zero emissions by 2050 at the latest. The company achieved sales of EUR 39 billion in 2023 and employed around 20,600 diverse and talented employees worldwide. OMV shares are traded on the Vienna Stock Exchange (OMV) and as American Depository Receipts (OMVKY) in the USA. Further information on www.omv.com.
OTS ORIGINAL TEXT PRESS RELEASE UNDER THE EXCLUSIVE RESPONSIBILITY OF THE SENDER FOR CONTENT – WWW.OTS.AT | OMV