Gerhard Roiss, CEO of OMV, on meeting the energy needs of the second fastest growing economy in the world.
Turkey is the second fastest growing economy in the world, second only to China. Figures from the Turkish Statistical Institute (TurkStat) also reveal that Turkey is the second largest market in Europe after Germany. With a population of 73 million and a strong demographic of young, technologically minded, and increasingly well-educated people, the door for further growth remains wide open. Although affected negatively in 2009 by the global economic downturn, Turkey recovered quickly and enjoyed GDP growth of 8.9% in 2010, then in 2011 became one of the top-10 fastest growing countries, confirming Turkey’s strategic importance. Such growth has a parallel impact on major industries, such as energy and oil and gas. As an emerging electricity and gas market for Europe, and with a geostrategic position on two continents, Turkey is high on all significant agendas in terms of future energy needs.
Today, energy diversification and supply security are among the most important issues that continental Europe faces. With its bridging role between energy-rich areas and a continent that demands energy, Turkey will play an increasingly important role in energy supply. Projects that can contribute and secure energy diversification will provide more value than ever. Pipeline projects that can extend energy supply to demanding markets need to be supported in every aspect.
In Turkey, we have further strengthened our position through the ownership of 97% of Petrol Ofisi shares, which is Turkey’s leading company in the retail and commercial business. The company has been rebranded as OMV Petrol Ofisi. Supporting the energy market in Turkey with its various investments and initiatives, OMV Petrol Ofisi aims to be a good partner for the environment and leverage the development of the market. In addition, the company will focus on providing energy-efficient products to its customers, ensuring that customer satisfaction comes first. The company will make investments that aim to meet Turkey’s energy needs and targets.
Gas-Fired Power Plants
In the coming years, OMV will remain focused on its goal of being an integrated, international company in oil and gas, with clearly improved profitability and strong growth in the upstream sector. The business of exploration and production (E&P) will assume a far more significant role. OMV will also experience strong growth in the gas sector, from production and transport to the marketing of gas. In Europe and Turkey, the gas business in particular will continue to experience strong growth. In contrast to the world market for oil production, gas needs regional integration from the field to the market through various logistic networks. OMV will expand its position along the entire gas value chain. Natural gas is the cleanest fossil fuel and will be the most significant energy source of the future. Besides the current gas pipeline projects, we will complete our portfolio with modern, gas-fired power plants. These plants will add a highly interesting outlet for our equity in gas and will complement our sales and trading business. The advantage of combined-cycle power plants is that they can be turned on and off on demand, providing a balance to market need and continuity. They also have the lowest CO2 emissions of all fossil fuel plants.
A Strategic OMV Hub
The acquisition of a majority stake in Petrol Ofisi in 2010 significantly strengthened OMV’s position in the Turkish market and supported OMV’s strategy of further enhancing its leading position in the European growth belt. OMV has a strong footprint in the attractive markets of Central and Southeastern Europe. With this transaction, OMV added a leading position in the important Turkish market, where we will further develop and roll out a successful, integrated business model. Petrol Ofisi is a further step in OMV’s growth strategy and aims at positioning Turkey as a third hub, in addition to Austria and Romania. OMV will seek to leverage Petrol Ofisi’s position to the benefit of all its business units.
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