OMV successfully receives arbitral award in relation to its German gas supplies from Gazprom Export
- OMV’s arbitration proceedings against Gazprom Export under ICC rules concluded with an award on November 13, 2024
- OMV is taking steps to recover damages from Gazprom Export based on this arbitral award of EUR 230 mn plus interest and costs
- The arbitral award will be set off with immediate effect against payments to be made by OMV to Gazprom Export under its Austrian gas supply contract
- Established extensive diversification measures will allow OMV to supply its customers in case of potential disruptions of Russian gas supply
OMV today announced the receipt of an arbitral award under the rules of the International Chamber of Commerce (ICC) in relation to Gazprom Export’s irregular German gas supplies, which had eventually ended in September 2022. In pursuit of its claims arising from Gazprom Export’s actions, OMV Gas Marketing & Trading GmbH (hereinafter: OGMT) initiated this request for arbitration in January 2023.
OMV has taken the decision to recover awarded damages amounting to EUR 230 million plus interest and costs, which positively contributes to balancing respective financial losses incurred in 2022. The company takes the necessary next steps to enforce the arbitral award with immediate effect. OGMT confirms off-setting its claims against invoices under the Austrian gas supply contract with Gazprom Export to obtain compensation for its awarded damage claims. The off-setting amount is expected to increase OMV’s clean CCS operating result and operating cash-flow.
It is expected that there may be a deterioration of the contractual relationship under the Austrian supply contract of OGMT with Gazprom Export, including a potential halt of gas supply. In such case, small one-time hedging losses could occur, but will be clearly outweighed by the positive effects from the recovered damages.
As part of OMV’s ongoing diversification strategy, it has continuously and successfully built up its gas supplies from non-Russian sources and additional pipeline capacities. Its portfolio of gas encompasses several supply sources from Norway, as well as additional long-term LNG volumes. OMV confirms that it can deliver the full contracted volumes of gas to its customers in case of a potential supply disruption by Gazprom Export. In addition, OMV’s gas storage in Austria is currently at over 90 percent.
The potentially affected volume of gas for the Austrian Virtual Trading Point (VTP) is estimated at up to 7,400 MWh per hour, which corresponds to approximately 5 TWh per month.
About OMV Aktiengesellschaft
At OMV, we are re-inventing essentials for sustainable living. OMV is transitioning to become an integrated sustainable chemicals, fuels and energy company with a focus on circular economy solutions. By gradually switching over to a low-carbon business, OMV is striving to achieve net zero by 2050 at the latest. The company achieved revenues of EUR 39 billion in 2023 with a diverse and talented workforce of around 20,600 employees worldwide. OMV shares are traded on the Vienna Stock Exchange (OMV) and as American Depository Receipts (OMVKY) in the U.S. Further information at www.omv.com.