OMV Group Production Declines in Q1 2007

Overall Group oil and gas production in Q1/07 was approximately 322,000 boe/d. The decline compared to Q4/06 was mainly due to lower volumes in the UK, Libya, Tunisia and Romania. While lower production in the UK primarily resulted from maintenance work in Schiehallion, production levels in Libya were negatively affected by reduced OPEC quotas and in Tunisia by temporary technical problems.

In Romania, lower volumes were mainly the consequence of the continuing natural decline. Temporary operational issues in the the Suplac area also resulted in lower production levels. The much weaker USD will negatively impact the Group results. Furthermore the strengthening of the RON against both USD and EUR continued, which impacts Petrom"s results adversely. The average Romanian regulated gas price for producers in Q1/07 increased to USD 154.05/1,000 cbm (RON 397.5), compared to Q4/06 (USD 140.85/1,000 cbm (RON 380.5)).

Refining margins recovered from the low level in Q4/06 and were higher than in Q1/06, mainly because of significantly increased gasoline spreads and the lower crude price. The weaker USD will have an adverse impact on the result in EUR. In addition to the seasonally lower sales volumes in the first quarter, the output of heating oil was below normal winter levels due to the particularly warm European winter. In general refinery utilization was high because of the inventory built ahead of the scheduled shutdown of the crude units in the refineries Schwechat in Austria and Arpechim in Romania as well as the partial shutdown at Bayernoil in Q2/07. Petrochemical volumes were at the level of previous quarters and petrochemical margins decreased compared to Q4/06, but were still higher than in Q1/06. Marketing volumes and margins were lower than in Q4/06.

The winter months showed seasonally a stronger demand for transportation and storage services. In addition, the start of operation of TAG Loop II at the end of 2006, resulted in a significant increase of contracted capacities. Because of the relatively mild weather throughout the winter sales volumes were almost stable compared to Q4/06. Petrom profited from gas price increases and a positive effect from withdrawals of storage quantities. EconGas recorded increased short-term wholesale and trading activities and in addition storage volumes have been successfully hedged.

Petrol Ofisi experienced a seasonally weaker business environment compared to Q4/06. Whereas Q4/06 was boosted by significant FX effects due to the appreciation of the YTL against the USD, we expect the FX impact to be significantly lower in Q1/07. In Borealis, petrochemical margins are expected at a similar level to the last quarter.

Main special items are expected to include gains from the sale of the oil field Chergui in Tunisia (about EUR 14 mn) and a reversal of the impairment of an oil field in Kazakhstan of about EUR 13 mn (impaired in Q2/06) as the asset has been sold in April 2007.

Due to high taxed crude oil liftings in the quarter and the full taxation in Romania due to the phase out of the geological quota the effective tax rate of Q1/07 is expected to be higher than in Q4/06 and in line with the full year guidance of around 27%.