EANS-Public Payment: OMV Aktiengesellschaft
Report on payment to government
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Consolidated Report on the Payments Made to Governments
Section 267c of the Austrian Commercial Code
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 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 the 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 of 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 or 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 regulations require 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 of 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 regulations. 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, 2018, 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, 2018.
Of the seven payment types that are required by the Austrian regulations to be
reported upon, OMV did not pay any dividends, bonuses or infrastructure
improvements that met the defined accounting directive definition and therefore
these categories are not shown.
Payments
overview
In EUR 1,000 Production Taxes Royalties Fees Total
Entitlements
Country
24,033 75,726 99,759
Austria
Kazakhstan 24,848 781 25,629
Madagascar 414 414
Norway 127,898 5,911 133,809
New Zealand 27,619 33,490 471 61,580
Pakistan 1,923 1,777 633 4,333
Romania 178,477 162,918 19,684 361,079
Tunisia 17,981 7,361 25,342
United Arab 12,567 1,271,015 1,283,582
Emirates
Yemen 50,946 4,836 55,782
Total 50,946 402,779 298,675 1,298,909 2,051,309
No payments have been reported for Libya for the year 2018 as OMV was not the
operator.
On April 29, 2018, OMV signed a concession agreement for the acquisition of a
20% stake in two oil fields in Abu Dhabi from ADNOC. The concession area
consists of two offshore fields under development, Umm Lulu and Satah Al Razboot
(SARB),as well as two satellite fields, Bin Nasher and Al Bateel. The agreed
participation fee amounted to USD 1.5 bn.
On June 28, 2018, OMV closed the sale of its Upstream companies active in
Pakistan and material payments made in 2018 prior to this date have been
reported.
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 OMV Group Consolidated Financial Statements it does not meet
the definition of a reporting entity in the context of the Austrian Commercial
Code.
Payments by Country
Payments by
country
In EUR 1,000 Production Taxes Royalties Fees Total
Entitlements
Austria
Governments
Federal
Ministry for
Digital and
Economic 75,726 75,726
Affairs
Federal
Ministry of 24,033 24,033
Finance
Total 24,033 75,726 99,759
Projects
Lower Austria 24,033 75,726 99,759
Total 24,033 75,726 99,759
Kazakhstan
Governments
State Revenue 24,848 214 25,062
Committee
Training
centers 567* 567
universities
Total 24,848 781 25,629
Projects
Tasbulat 9,926 533 10,459
Komsomolskoe 14,922 248 15,170
Total 24,848 781 25,629
* Financing of various expenses with regard to university training centers as
agreed within the concession Agreement
Payments by
country
In EUR 1,000 Production Taxes Royalties Fees Total
Entitlements
Madagascar
Governments
Office des Mines
Nationales et 414 414
des Industries
Stratégiques
Total 414 414
Projects
Explorations 414 414
Total 414 414
Norway
Governments
Oljedirektoratet 5,834 5,834
Skatteetaten 127,898 77 127,975
Total 127,898 5,911 133,809
Projects
Gulfaks 51 51
Gudrun 51 51
Norway
Exploration 5,905 5,905
Projects
Payments not
attributable to 127,796 6 127,802
projects
Total 127,898 5,911 133,809
Payments by country
In EUR 1,000
Production Taxes Royalties Fees Total
Entitlements
New Zealand
Governments
Crown Minerals 33,490 33,490
Inland Revenue 27,456 27,456
Ministry of Business and 163 129 292
Innovation
Environmental Protection Authority 231 231
Maritime Safety Authority 111 111
Total 27,619 33,490 471 61,580
Projects
Maari 10 6,770 289 7,069
Maui 2 1,926 1,928
Pohokura 689 24,794 25,483
New Zealand exploration projects 152 182 334
Payments not attributable to 26,766 26,766
projects
Total 27,619 33,490 471 61,580
Pakistan
Governments
Federal Board of Revenue
Government
of Pakistan 1,923 1,923
Director General of Petroleum 1,777 372 2,149
Concessions
Local Government, District Sukker 261 261
Total 1,923 1,777 633 4,333
Projects
Mehar 432 204 636
Miano 258 326 584
Sawan 1,087 64 1,151
Pakistan exploration projects 39 39
Payments not attributable to 1,923 1,923
projects
Total 1,923 1,777 633 4,333
Romania
Governments
State budget 178,477 162,918 341,395
Local councils 4,840 4,840
National Agency for Mineral 566 566
Resources (ANRM)
National Company of Forests 13,425 13,425
CONPET SA 106 106
National Authority for Electricity
Regulation
(ANRE) 569 569
Offshore Operations Regulatory
Authority
(ACROPO) 178 178
Total 178,477 162,918 19,684 361,079
Projects
Onshore production zones 123,809 18,901 142,710
Onshore Joint Ventures 1,233 10 1,243
Offshore Black Sea 37,876 217 38,093
Payments not attributable to 178,477 556 179,033
projects
Total 178,477 162,918 19,684 361,079
Payments by country
In EUR 1,000
Production Taxes Royalties Fees Total
Entitlements
Tunisia
Governments
Receveur des Finances 16,418 16,418
Receveur des Douanes 1,563 1,563
Entreprise Tunisienne d'Activités 6,848 * 6,848
Pétrolières
Tresorerie Generale de Tunisie 513 513
Total 17,981 7,361 25,342
Projects
TPS 11,299 11,299
South Tunisia 6,682 7,3611 14,043
Total 17,981 7,361 25,342
* Includes payments in kind for 112,781 bbl of crude oil valued using the
average monthly price per boe
In Tunisia where OMV is not the operator, its proportional contribution to the
host government's royalties for 2018 would have been EUR 6.42 mn for 113,890 bbl
of crude oil valued using the average monthly price per boe.
Payments by country
In EUR 1,000
Production Taxes Royalties Fees Total
Entitlements
United Arab Emirates
Governments
Abu Dhabi National Oil Company 905 905
(ADNOC)
Emirate of Abu Dhabi - Finance 12,567 1,270,110 1,282,677
Department
Total 12,567 1,271,015 1,283,582
Projects
Umm Lulu and SARB 12,567 1,271,015 1,283,582
Total 12,567 1,271,015 1,283,582
Yemen
Governments
Ministry of Oil & Minerals 50,946 * 4,836 ** 55,782
Total 50,946 4,836 55,782
Projects
Block S2 50,946 * 4,836 ** 55,782
Total 50,946 4,836 55,782
* Payments in kind for 882,342 boe valued at prices set by the Yemen Crude Oil
Marketing Directorate
** Payments in kind for 83,738 boe valued at prices set by the Yemen Crude Oil
Marketing Directorate
Vienna, March 13, 2019
The Executive Board
Rainer Seele m.p.
Johann Pleininger m.p.
Reinhard Florey m.p.
Manfred Leitner m.p.
Further inquiry note:
OMV Aktiengesellschaft
Andreas Rinofner, Public Relations
Tel.: +43 (1) 40 440-21427; e-mail: public.relations@omv.com
Florian Greger, Investor Relations
Tel.: +43 (1) 40 440-22421; e-mail: investor.relations@omv.com
end of announcement euro adhoc
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