OMV CEO Warns of Possible Further Writedowns on Russian Gas Field

(Reuters) — Austrian oil and gas group OMV could require further writedowns on its Yuzhno-Russkoye gas field in Russia, CEO Alfred Stern said on Thursday.

"Depending on what might happen, further impairment losses may be required as we have not yet been able to fully write off Yuzhno," Stern told the Kurier daily newspaper.

OMV bought a 24.99% stake in the natural gas field in Western Siberia five years ago from German energy supplier Uniper for about 1.7 billion euros ($1.8 billion).

Stern also said that OMV had underestimated the risk of doing business in Russia.

OMV's business relating to the Nord Stream 2 pipeline and the gas field have already required writedowns of 1 billion euros each.

The company is seeking to distance itself from Russia since its invasion of Ukraine, which Moscow describes as a "special military operation” and is looking at strategic options for Yuzhno-Russkoye, one of Russia's largest gas fields.

OMV continues, meanwhile, to work on a proposal for payment methods on Gazprom gas supply contracts to conform with Western sanctions.

"We are on track but haven't yet reached our goal," Stern said.

The Russian gas giant has met its contractual obligations on gas deliveries so far, Stern said, adding that European solidarity would be crucial if deliveries were to stop.

($1 = 0.9444 euros)


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