PTA-PR: OMV Aktiengesellschaft: Report on the Payments Made to Governments pursuant to Sec. 128 Stock Exchange Act

3/24, 3:00 PM (Source: pressetext)

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Vienna (pta038/24.03.2022/15:00) - Section 267c of the Austrian Commercial Code (UGB) requires that large undertakings and public interest entities that are active in the extractive industry or logging of primary forests prepare the following consolidated report on payments to governments. This section implements Chapter 10 of the EU Accounting Directive (2013/34/EU). The "Basis of preparation" paragraph provides information to the reader about the contents of the report. This also includes information on the type of payment for which disclosure is required and how OMV has implemented the regulations in the preparation of the report.

Report on payments to government agencies according to article 128 BörseG

Vienna (pta038/24.03.2022/15:00) - Section 267c of the Austrian Commercial Code (UGB) requires that large undertakings and public interest entities that are active in the extractive industry or logging of primary forests prepare the following consolidated report on payments to governments. This section implements Chapter 10 of the EU Accounting Directive (2013/34/EU). The "Basis of preparation" paragraph provides information to the reader about the contents of the report. This also includes information on the type of payment for which disclosure is required and how OMV has implemented the regulations in the preparation of the report.

Basis of preparation

Reporting entities

Under the requirements of the regulation, OMV Aktiengesellschaft is required to prepare a consolidated report covering payments made to governments for each financial year in relation to extractive activities by itself and any subsidiary undertakings included in the consolidated Group financial statements.

Activities within the scope of the report

Payments made by OMV Group (hereafter OMV) to governments that arose from exploration, prospection, discovery, development, and extraction of minerals, oils, and natural gas deposits or other materials within extractive activities are presented in this report.

Government

A "government" is defined as any national, regional or local authority of a country and includes a department agency or entity undertaking that is controlled by the government authority and includes national oil companies.

In cases where a state-owned entity engages in activities outside its designated home jurisdiction, then it is not deemed to be a reportable governmental body for these purposes and thus payments made to such an entity in these circumstances are not reportable.

Project definition

The regulation also requires payments to be reported on a "project" basis as well as on a government and governmental body basis. A project is defined as the operational activities that are governed by a single contract, license, lease, concession, or similar legal agreement and form the basis for payment liabilities to the government. Where these agreements as per the aforementioned definition are substantially interconnected, these agreements are treated for the purpose of these regulations as a single project.

"Substantially interconnected" is defined as a set of operationally and geographically integrated contracts, licenses, leases, concessions, or related agreements with substantially similar terms that are signed with a government, giving rise to payment liabilities. Such agreements can be governed by a single contract, joint venture agreement, production sharing agreement or other overarching legal agreement.

There may be instances, for example, corporate income taxes, where it is not possible to attribute the payment to a single project and therefore these payments are shown at the country level.

Cash and payments in kind

In accordance with the regulation, payments have to be reported on a cash basis. This means that they are reported in the period in which they are paid and not in the period in which they are accounted for on an accruals basis.

Refunds are also reported in the period in which they are received and will either be offset against payments made in the period or be shown as negative amounts in the report.

Payments in kind made to a government are converted to an equivalent cash value based on the most appropriate and relevant valuation method for each payment type. This can be at cost or market value and an explanation is provided in the report to help explain the valuation method. Where applicable, the related volumes are also included in the report.

Payment reporting methodology

The regulation requires that payments are to be reported where they are made to governments by OMV. It is required that the report reflect the substance of each transaction and activity. Based on these requirements, OMV has considered its reporting obligation as:

* Where OMV makes a payment directly to the government, these payments will be reported in full, irrespective of whether this is made in the sole capacity of OMV or in OMV's capacity as the operator of a joint operation.
* In cases where OMV is a member of a joint operation for which the operator is a state-owned entity (i.e., a government), payments made to that state-owned entity will be disclosed where it is possible to identify the reportable payment from other cost recovery items.
* For host government production entitlements, the terms of the agreement have to be considered; for the purpose of reporting in this report, OMV will disclose host government entitlements in their entirety where it is the operator.

Materiality

Payments made as a single payment or a series of related payments that are below EUR 100,000 within a financial year are excluded from this report.

Reporting currency

Payments made in currencies other than euros are translated for the purposes of this report at the average rate of the reporting period.

Payment types disclosed

Production entitlements

Under production sharing agreements (PSAs), the host government is entitled to a share of the oil and gas produced and these entitlements are often paid in kind. The report will show both the value and volume of the government's production entitlement for the relevant period in barrels of oil equivalent (boe).

The government share of any production entitlement will also include any entitlements arising from an interest held by a state-owned entity as an investor in projects within its sovereign jurisdiction. Production entitlements arising from activities or interests outside a state-owned entity's sovereign jurisdiction are excluded.

Taxes

Taxes levied on income, production or profits of companies are reported. Refunds will be netted against payments and shown accordingly. Consumption taxes, personal income taxes, sales taxes, property taxes and environmental taxes are not reported under the regulation. Although there is a tax group in place, the reported corporate income taxes for Austria relate entirely to the extractive activities in Austria of OMV's subsidiaries, with no amounts being reported relating to OMV's non-extractive activities in Austria.

Royalties

Royalties relating to the extraction of oil, gas and minerals paid to a government are to be disclosed. Where royalties are paid in kind, the value and volume are reported.

Dividends

In accordance with the regulations, dividends are reported when paid to a government in lieu of production entitlements or royalties. Dividends that are paid to a government as an ordinary shareholder are not reported, as long as the dividends are paid on the same terms as that of other shareholders.

For the year that ended December 31, 2021, OMV had no such reportable dividend payments to a government.

Bonuses

Bonuses include signature, discovery and production bonuses in each case to the extent paid in relation to the relevant activities.

Fees

These include license fees, rental fees, entry fees and all other payments that are paid in consideration for access to the area where extractive activities are performed.

The report excludes fees paid to a government that are not specifically related to extractive activities or access to extractive resources. In addition, payments paid in return for services provided by a government are also excluded.

Infrastructure improvements

The report includes payments made by OMV for infrastructural improvements, such as the building of a road or bridge that serves the community, irrespective of whether OMV pays the amounts to non-government entities. These are reported in the period during which the infrastructure is made available for use by the local community.

Payments overview

The overview table below shows the relevant payments to governments that were made by OMV in the year that ended December 31, 2021.

Of the seven payment types that are required by the Austrian regulations to be reported upon, OMV did not pay any dividends or infrastructure improvements that met the defined accounting directive definition, and therefore these categories are not shown.

Payments overview

In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Country
Austria - (33,488) 50,215 - - 16,727
Georgia - - - 1,418 - 1,418
Kazakhstan - 1,683 - - - 1,683
Malaysia 255,733 20,788 68,235 - 21,275 366,031
Norway - 230,249 - - (1,422) 228,827
New Zealand - 39,644 45,507 - 8,119 93,269
Romania - 228,135 131,465 - 23,973 383,572
Tunisia - 4,824 12,059 - 194 17,077
United Arab Emirates - 102,013 118,270 - 873 221,156
Yemen 48,730 - 4,637 - 1,821 55,188
Total 304,463 593,847 430,388 1,418 54,833 1,384,949

No payments have been reported for Libya for the year 2021 as OMV was not the operator.

On November 30, 2017, OMV acquired a stake of 24.99% in OJSC Severneftegazprom (SNGP). As SNGP is an associated company and therefore accounted for using the equity method in the OMV Group Consolidated Financial Statements, it does not meet the definition of a reporting entity in the context of the Austrian Commercial Code.

On January 31, 2019, OMV and Sapura Energy Berhad closed the agreement to form a strategic partnership. The new entity, SapuraOMV Upstream Sdn. Bhd., and its subsidiaries are fully consolidated in OMV's Group financial statements.

There were no major acquisitions during 2021.

As per May 14, 2021, OMV Petrom finalized the sale of its 100% share in Kom-Munai LLP and Tasbulat Oil Corporation LLP (both based in Aktau, Kazakhstan).

On August 1, 2021, SapuraOMV Upstream Sdn. Bhd. sold its share in SapuraOMV Upstream (PM) Inc., which held interests in various producing assets located offshore Peninsular Malaysia.

Payments by country

Austria
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
Federal Ministry of Agriculture,
Regions and Tourism - - 50,215 - - 50,215
Federal Ministry of Finance - (33,488) - - - (33,488)
Total - (33,488) 50,215 - - 16,727
Projects
Lower Austria - (33,488) 50,215 - - 16,727
Total - (33,488) 50,215 - - 16,727

Georgia
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
LEPL State Agency of Oil and Gas - - - 1,418 - 1,418
Total - - - 1,418 - 1,418
Projects
Offshore Black Sea - - - 1,418 - 1,418
Total - - - 1,418 - 1,418

Kazakhstan
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
State Revenue Committee - 1,683 - - - 1,683
Total - 1,683 - - - 1,683
Projects
Tasbulat, Turkmenoi, Aktas - 711 - - - 711
Komsomolskoe - 972 - - - 972
Total - 1,683 - - - 1,683

Malaysia
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
Petroliam Nasional Berhad 86,691 (FN 1) 74 68,235 (FN 3) - 21,275 176,275
Ketua Pengarah Hasil Dalem Negeri - 20,714 - - - 20,714
Petronas Carigali SDN BHD 169,042 (FN 2) - - - - 169,042
Total 255,733 20,788 68,235 - 21,275 366,031
Projects
Block PM323/PM329 48,279 (FN 4) 2,431 8,786 (FN 6) - 4,437 63,933
Block AAKBNLP/PM318 - 2,296 - - 849 3,146
Block SK408/SK310 207,453 (FN 5) 16,061 59,449 (FN 7) - 15,989 298,953
Total 255,733 20,788 68,235 - 21,275 366,031

1 Includes payments in kind for 2,436,100 bbl of crude oil valued using the average monthly price per boe

2 Includes payments in kind for 9,402,560 bbl of crude oil valued using the average monthly price per boe

3 Includes payments in kind for 3,596,433 bbl of crude oil valued using the average monthly price per boe

4 Includes payments in kind for 848,301 bbl of crude oil valued using the average monthly price per boe

5 Includes payments in kind for 10,990,359 bbl of crude oil valued using the average monthly price per boe

6 Includes payments in kind for 154,658 bbl of crude oil valued using the average monthly price per boe

7 Includes payments in kind for 3,441,775 bbl of crude oil valued using the average monthly price per boe

Norway
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
Oljedirektoratet - - - - (1,469) (1,469)
Skatteetaten - 230,249 - - 36 230,285
Miljodirektoratet - - - - 10 10
Total - 230,249 - - (1,422) 228,827
Projects
Gulfaks - 63 - - - 63
Gudrun - 63 - - - 63
Aasta Hansteen - 6 - - - 6
Norway Exploration Projects - - - - (1,422) (1,422)
Payments not attributable to projects - 230,118 - - - 230,118
Total - 230,249 - - (1,422) 228,827

New Zealand
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
Inland Revenue - 39,644 - - - 39,644
Ministry of Business,
Innovation and Employment - - 45,507 - 7,983 53,490
Environmental Protection Authority - - - - 136 136
Total - 39,644 45,507 - 8,119 93,269
Projects
Maari - - 7,599 - 77 7,676
Maui - - 5,348 - 7,916 13,265
Pohokura - - 32,559 - 13 32,572
New Zealand exploration projects - - - - 108 108
Payments not attributable to projects - 39,644 - - 4 39,648
Total - 39,644 45,507 - 8,119 93,269

Romania
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
State budget - 228,135 131,465 - - 359,599
Local councils - - - - 4,037 4,037
National Agency
for Mineral Resources (ANRM) - - - - 2,505 2,505
National Company of Forests - - - - 14,996 14,996
CONPET SA - - - - 98 98
National Authority for
Electricity Regulation (ANRE) - - - - 1,690 1,690
Offshore Operations
Regulatory Authority (ACROPO) - - - - 647 647
Total - 228,135 131,465 - 23,973 383,572
Projects
Onshore production zones - - 101,893 - 21,628 123,521
Onshore Joint Operations - - 1,177 - - 1,177
Offshore Black Sea - 49,657 28,395 - 655 78,707
Payments not attributable to projects - 178,477 - - 1,690 180,168
Total - 228,135 131,465 - 23,973 383,572

Tunisia
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
Receveur des Finances - 4,332 - - 194 4,526
Receveur des Douanes - 492 - - - 492
Entreprise Tunisienne
d'Activités Pétrolières - - 7,797 (FN 1) - - 7,797
Trésorerie Générale de Tunisie - - 4,261 - - 4,261
Total - 4,824 12,059 - 194 17,077
Projects
South Tunisia - 4,824 12,059 (FN 1) - 194 17,077
Total - 4,824 12,059 - 194 17,077

1 Includes payments in kind for 133,740 bbl of crude oil valued using the average monthly price per boe

United Arab Emirates
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
Abu Dhabi National Oil Company (ADNOC) - - - - 873 873
Emirate of Abu Dhabi -
Finance Department - 102,013 118,270 - - 220,283
Total - 102,013 118,270 - 873 221,156
Projects
Umm Lulu und SARB - 102,013 118,270 - 873 221,156
Total - 102,013 118,270 - 873 221,156

Yemen
In EUR 1,000
Production entitlements Taxes Royalties Bonuses Fees Total
Governments
Ministry of Oil & Minerals 48,730 (FN 1) - 4,637 (FN 2) - 1,821 55,188
Total 48,730 - 4,637 - 1,821 55,188
Projects
Block S2 48,730 (FN 1) - 4,637 (FN 2) - 254 53,621
Block 86 - - - - 1,567 1,567
Total 48,730 - 4,637 - 1,821 55,188

1 Includes payments in kind for 844,582 boe valued at prices set by the Yemen Crude Oil Marketing Directorate

2 Includes payments in kind for 80,373 boe valued at prices set by the Yemen Crude Oil Marketing Directorate

Vienna, March 9, 2022

The Executive Board

(end)

emitter: OMV Aktiengesellschaft
address: Trabrennstraße 6-8, 1020 Wien
country: Austria
contact person: Thomas Hölzl
phone: +43 1 40440/23760
e-mail: compliance@omv.com
website: www.omv.com

ISIN(s): AT0000743059 (share)
stock exchanges: official trade in Vienna

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