OMV main objectives for Petrom are modernization and developing new projects

The group is expecting volumes produced in Romania to increase in 2008. Gradual improvements are due in Petrom refineries, although considerable increases in earnings are not foreseen, at least not until the modernization project is completed in 2011.

OMV considers that the main engines influencing the oil market (oil price, refinery margins, and dollar exchange rate) will remain volatile in 2008. According to OMV estimates, the price of oil and the Brent-Ural differential will exceed 2007 levels, despite short-term fluctuations.

The group also expects the leu to depreciate against the euro and dollar, and refinery margins to drop below the 2007 level. OMV is projecting that exploration and production division volumes will exceed those in 2007. The program to modernize wells in Romania will continue, as will efforts to make production more efficient.

On the natural gas segment, due to Romanian natural gas market price regulations, profit margins are subject to considerable pressure. The start of the construction of the Petrobrazi power station will represent a very important project for OMV in 2008. The group plans to invest an average annual €3 billion by 2010.