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OMV signs agreement with Libyan NOC to renew contracts for major oil fields

Contracts for OMV's blocks in Libya's Murzuq basin extended to 2032

Existing Exploration and Production Sharing Agreements (EPSAs) transformed to standard EPSA IV contractual frame-work

New exploration campaign planned in NC115 and NC186

Increase in oil production levels resulting from ongoing field development in NC115 and NC186

OMV, Central Europe's leading oil and gas group, signed agreements with Libya's National Oil Corporation (NOC) for blocks NC115 and NC186 in the Murzuq basin, onshore Libya, some 700 km south of Tripoli. Partners in NC115 are Repsol (40%) and Total (30%). In Block NC186 Repsol holds 32%, OMV and Total 24% each and StatoilHydro 20%.

The original EPSA contracts signed in 1994 and 1997 have been converted to the EPSA IV contractual frame-work, which is now a standard in Libya, reflecting the changes in the oil industry environment. As part of the review process the agreements have been extended for block NC115 by 15 years from 2017 and for NC186 by 10 years from 2023 until 2032, effective from January 2008. The international consortia will receive a primary split of 13% of gross field production in NC115 and 12% in NC186, both on an after tax basis. Furthermore an extensive exploration campaign has been agreed in NC115 and in NC186.

The new contracts also provide for a signature bonus of a total of USD 1 bn for NC115 and NC186, of which OMV's share in total will be USD 249 mn, payable over three years reflecting the long-term participation in these two blocks and the access to high-quality oil reserves.

Helmut Langanger, OMV Executive Board member responsible for Exploration and Production, said: "OMV has been active in Libya since 1975, with production since 1985. The extension of the Murzuq contracts until 2032 reflects our strong relationship with Libya and is an important step in securing our position in Libya in the future. As a result of the ongoing development of the discoveries made in both blocks, the total production from these two blocks will increase from today's 300,000 bbl/d to approximately 380,000 bbl/d in 2012. The extended access to those world class fields and in-depth knowledge of their future potential reassure us that these assets in Libya will remain an essential and profitable part of our portfolio."

Following the signature of the EPSAs OMV will adapt its production reporting on NC115. In order to make it comparable to general reporting methods in the oil industry the production will be reported on a pre-tax basis. The change to pre-tax reporting and the extension of the contract period will lead to higher reserves for NC115, increased production levels and a higher EBIT contribution. Reporting for NC186 has already been adapted in Q4/06.

As a result of the new contractual framework, net income will be affected in the first phase and it will lead to a higher corporate tax rate. However, the outcome of the re-negotiations should be considered in the context of OMV managing to extend oil production from the world class El Shararah field in NC115 by 15 years, receiving the award of exploration rights in the prolific NC115 and NC186 as well as gaining further business opportunities in Libya.

Strong Libyan E&P portfolio
OMV has been present in Libya since 1975 and made a major expansion in 1985 when it acquired 25% of Occidental Petroleum's producing assets in Libya. Since then OMV has expanded its E&P operations significantly further by entering into an agreement in 1994 with NOC , Repsol and Total for the development and production of the giant El Sharara field (Block NC115), which produces in excess of 200,000 bbl/d. In 1997, NC 186 was acquired. So far, there have been eight discoveries in NC 186, five of which are currently in production. In 2003, OMV and Repsol were awarded Exploration Package 1 encompassing six blocks with a total size of approximately 70,000 km². Three discoveries have been made to date. Effective December 1, 2007 OMV together with Occidental signed agreements for the re-development of the giant Nafoora Augila field and other oilfields in the very prolific Sirte basin. The contracts are valid for a 30 year period. Production from these fields is expected to increase from today's 100,000 bbl/d to 300,000 bbl/d. OMV's current production in Libya amounts to approximately 33,000 bbl/d.

-Ends-

EPSA IV
EPSA stands for Exploration and Production Sharing Agreement. Under such agreement the foreign investor carries 100% of the exploration expenditures. In case of a discovery development costs are shared 50/50 between NOC and the foreign investor. The primary split defines the maximum percentage of crude oil, condensate or natural gas which the foreign investor will receive. The Libyan EPSA contract has undergone a development over decades with its latest version (EPSA IV) in place since January 2005.

Partners NC115:
Repsol - 40%
OMV - 30%
Total - 30%

Partners NC186:
Repsol - 32%
OMV - 24%
Total - 24%
StatoilHydro - 20%

OMV Aktiengesellschaft
With Group sales of EUR 20.04 bn and a workforce of 33,665 employees in 2007, as well as market capitalization of approx. EUR 13 bn, OMV Aktiengesellschaft is Austria's largest listed industrial company. As the leading oil and gas group in Central Europe, OMV is active in Refining and Marketing (R&M) in 13 countries. In Exploration and Production (E&P) OMV is active in 20 countries on five continents. OMV sells more than 13 bcm gas a year. OMV's Austrian gas hub Baumgarten annually transports approximately 52 bcm of gas. OMV's Central European Gas Hub is amongst the three largest hubs in Europe.

OMV is the largest oil and gas group in Central Europe, with oil and gas reserves of approx. 1.22 bn boe, daily production of around 321,000 boe and an annual refining capacity of 26.4 mn t. OMV now has 2,538 filling stations in 13 countries. The market share of the group in the R&M business segment in the Danube Region is now 20%.

OMV further strengthened its leading position in the European growth belt through the acquisition of 40.93% of Petrol Ofisi, Turkey's leading company in the retail and commercial business.

In June 2006, OMV has established the OMV Future Energy Fund, a wholly owned subsidiary to support projects in renewable energy with more than EUR 100 mn to initiate the change from a pure oil and gas group to an energy group with renewable energy in its portfolio.

OMV: Corporate Social Responsibility (CSR)
OMV is a member of the U.N. Global Compact and actively committed to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment in economically weak regions. OMV works hard to address economic, environmental and social issues related to its operations. Its CSR activities are fully documented in biannual performance reports compiled according to Global Reporting Initiative guidelines. The "Global 100 Ranking" presented at this year's World Economic Forum in Davos ranks OMV as one of the six most sustainable energy companies worldwide.

For further questions please contact:
OMV
Press:
Bettina Gneisz
Tel.: 0043 1 40 440 21660
E-Mail: bettina.gneisz@omv.com

Thomas Huemer
Tel.: 0043 1 40 440 21660
E-Mail: thomas.huemer@omv.com

Investors/Analysts:
Ana-Barbara Kun?i?
Tel.: 0043 1 40 440 21600
E-Mail: investor.relations@omv.com
Internet: http://www.omv.com

Ballard Associates Limited
Louise Ballard
Tel.: +44 207 062 1193
E-mail: louise@ballard-associates.com

© Press Release 2008