OMV AG — Environmental & Social Information 2020

Mar 26, 2020

Publication Date: 26.03.2020 15:00 EANS-Public Payment: OMV Aktiengesellschaft / Report on payment to government agencies according to art. 128 Stock Exchange Act

Public Payment transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is responsible for the content of this announcement.

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, pro spection, 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 stateowned 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 pay ment 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 stateowned entity (i.e. a government), payments made to that stateowned 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 consid ered; 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 stateowned entity as an investor in projects within its sovereign juris diction. Production entitlements arising from activi ties or interests outside of a stateowned 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, 2019, 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 consider ation 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 nongovernment 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, 2019.

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_ _ ___ __ _ ____
					Austria_ _ 26,600 70,326 __118 _____97,044
					Kazakhstan__ __ _16,625 ___ _1,031 _17,656
					Madagascar__ __ _ ___ _3,691 __3,691
					Malaysia_ __181,017 __14,968 _39,705 26,308 ___261,998
					Norway__ _ __400,178 __ _2,328 ____402,506
					New_Zealand_ __ _48,040 63,634 _6,387 ___118,061
					Romania_ _ __219,433 _159,952 _31,015 ___410,400
					Tunisia_ _ 13,807 _8,878 _99 _22,784
United Arab		47,425	100,952	80,313	228,690
					Emirates_ _ __ _ _ _______
					Yemen_ __77,138 _ _7,340 _9,874 ____94,352
					Total_ _258,155 787,076 __450,787 _161,164 __1,657,182

No payments have been reported for Libya for the year 2019 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 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 consoli dated in OMV's Group financial statements

Payments by country

Payments by
country
In EUR 1,000	Production	Taxes	Royalties	Fees	Total
	Entitlements
Austria
Governments
Federal
Ministry for
Digital			70,326		70,326
and Economic
Affairs
Federal
Ministry of		26,600			26,600
Finance
Federal
Ministry for				118	118
Sustainability
and Tourism
Total			_26.600 ___________________________
Projects
Lower Austria			____________________________
Total					26,600

In EUR 1,000	Production	Taxes	Royalties	Fees	Total
	Entitlements
Kazakhstan
Governments
State Revenue		16,625		247	16,872
Committee
Training
centers				305 (1)	305
universities
Licenced
Research
and				479 (2)	479
Development
Organisations
Total		16,625		1 -
Projects
Tasbulat		5,967		797	6,764
Komsomolskoe		______________________________		234	10,892
Total		16,625		1,031	17,656

(1) Financing of various expenses with regard to university training centers as agreed within the concession agreement

(2) Various expenses with regards to research and development works

In EUR 1,000 Production Taxes Royalties			Fees	Total
	Entitlements
Madaqascar

					Governments_ __ __ _ _ ____
Office des
Mines
Nationales				3,691	3,691
et des
Industries
					Stratégiques __ __ _ _ ____
					Total_ __ __ _ _3,691 ______3,691
					__ _ _ _ _ ____
					Projects_ _ _ ___ ___ _____
					Explorations __ __ _ _3,691 ______3,691
					Total_ __ __ _ _3,691 ______3,691

	____________
	In EUR 1,000 Production	Taxes	Royalties	Fees	Total
				__ Entitlements _ ___ __ _____
				Malaysia_ _ __ _ _ _______
				Governments_ __ _ ___ __ _____
Petroliam
Nasional	94,368 (1)		39,705 (3)	24,530	158,603
				Berhad__ _ ___ __ _ ____
Ketua
Pengarah		14,968			14,968
Hasil Dalem
				Negeri__ _ ___ __ _ ____
Petronas
Carigali SDN	86,649 (2)			1,778	88,427
				BHD_ __ _ _ __ _____
				Total_ _181,017 _14,968 39,705 26,308 ___261,998
				__ _ ___ __ _ ____
				Projects_ _ __ _ _ _______
	Block PM323/ 137,137 (4)	4,904	24,907 (6)	20,020	186,968
				PM329_ __ _ ___ __ _____
				Block_PM318_ __ _6,504 _ __748 ______7,252
Block				3,089	3,089
				AAKBNLP_ _ ___ __ _ ____
Block SK408/	43,880 (5)	3,448	14,798 (7)	2,451	64,577
				SK310_ __ _ ___ __ _____
Payments not
attributable		112			112
				to_projects_ __ _ ___ __ _____
				Total_ _181,017 _14,968 39,705 26,308 ___261,998

(1) Includes payments in kind for 1,706,019 bbl of crude oil valued using the average monthly price per boe (2) Includes payments in kind for 2,652,414 bbl of crude oil valued using the average monthly price per boe (3) Includes payments in kind for 1,138,911 bbl of crude oil valued using the average monthly price per boe (4) Includes payments in kind for 2,182,255 bbl of crude oil valued using the average monthly price per boe (5) Includes payments in kind for 2,176,178 bbl of crude oil valued using the average monthly price per boe (6) Includes payments in kind for 395,205 bbl of crude oil valued using the average monthly price per boe (7) Includes payments in kind for 743,706 bbl of crude oil valued using the average monthly price per boe

In EUR 1,000	Production Entitlements	Taxes	Royalties	Fees	Total
Norway
Governments
Oljedirektoratet_				2,306	2,306
Skatteetaten		400,178		______________________________	400 , 190
Miljodirektoratet				10	10
Total		400,178	______________________________	2,328	402,506
Projects
Gulfaks		ਕੇ ਪੈ			4 4
Gudrun		44			4 4
Norway
Exploration				2,322	2,322
Projects
Payments not
attributable to		400,090		б	400 , 096
projects_
Total		400,178		2,328	402,506

	In EUR 1,000 Production Entitlements	Taxes	Royalties	Fees	Total
New Zealand
Governments
Inland		48,040			48,040
Revenue
Maritime
Safety				10	10
Authority_
Ministry of
Business and			63,634	5,969	69,603
Innovation
Environmental
Protection				408	408
Authority_
Total		-48 , 040 ________________________	63,634	6,387	118,061
Projects
Maari				_14 , 295 _________________________
Maui			__4 , 804		____________________________
Pohokura			44,535		44,535
New Zealand
exploration				515	515
projects
Payments not
attributable		48,040		5,739	53,779
to_projects
Total			_48 , 040 __ 63 , 634 ________________________

	In EUR 1,000 Production	Taxes	Royalties	Fees	Total
	Entitlements
Romania
Governments
State budget		219 , 433	159,952		379,385

Local			4,123	4,123
councils
National
Agency for
Mineral			2,200	2,200
Resources
( ANRM ) __
National
Company of			13,777	13,777
Forests
CONPET_SA			90	90
National
Authority
for			9,912	9,912
Electricity
Regulation
(ANRE )
Offshore
Operations
Regulatory			ਰ 1 3	ਰ 13
Authority
(ACROPO) ___________________________
Total_________________________	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Projects
Onshore
production		121 , 544	20,138	141,682
zones
Onshore
Joint		1,281		1,281
Ventures
Offshore	20,635	37,127	665	58 , 727
Black_Sea_
Payments not
attributable	198,798		9,912	208,710
to_projects_
Total_________ _			219 , 433 _ ________________________

In EUR 1,000 Production		Taxes -	Royalties	Fees	Total
	Entitlements
Tunisia
Governments_
Receveur des		13,167		ਰ ਰੇ	13,266
Finances
Receveur des		640			640
Douanes
Entreprise
Tunisienne			6,606 (1)		6,606
d'Activités
Pétrolières
Tresorerie
Generale de			2,272		2,272
Tunisie
Total		13,807	8,878	99	22,784
Projects_
South		13,807	8,878 (1)	ਰੇ ਰੇ	22,784

		Tunisia_ _ ___ __ _ ____
		Total_ __ _13,807 _8,878 _99 _22,784

(1) Includes payments in kind for 115,900 bbl of crude oil valued using the average monthly price per boe

In Tunisia where OMV is not the operator, it's proportional contribution to the host government's royalties for 2019 would have been EUR 1.52 mn for 26,595 bbl of crude oil valued using the average monthly price per boe.

______________________________________________________________________________

	In EUR 1,000 Production	Taxes	Royalties	Fees	Total
					__ Entitlements _ ___ __ _____
United Arab
					Emirates_ _ __ _ _ _______
					Governments_ __ _ ___ __ _____
Abu Dhabi
National Oil				80,313	80,313
Company
					(ADNOC)_ _ ___ __ _ ____
Emirate of
Abu Dhabi -		47,425	100,952		148,377
Finance
					Department__ __ _ ___ __ _____
					Total_ __ _47,425 __100,952 __80,313 ____228,690
					__ _ ___ __ _ ____
					Projects_ _ __ _ _ _______
Umm Lulu and		47,425	100,952	828	149,205
					SARB__ __ _ ___ __ _____
United Arab
Emirates				79,485	79,485
exploration
					projects_ _ __ _ _ _______
					Total_ __ _47,425 __100,952 __80,313 ____228,690

				________________
	In EUR 1,000 Production Taxes		Royalties	Fees	Total
				__ Entitlements __ __ _ ____
				Yemen_ __ __ __ _ ____
				Governments_ __ __ __ _ ____
Ministry of
Oil &	77,138 (1)		7,340 (2)	9,874	94,352
				Minerals_ _ _ ____ ___ _____
				Total_ __77,138 __ __7,340 __9,874 _____94,352
				__ _ _ __ _ ____
				Projects_ _ _ ____ ___ _____
				Block_S2_ 77,138(1) __ __7,340_(2) __6,511 _90,989
				Block_86_ _ _ ____ __3,363 __3,363
				Total_ __77,138 __ __7,340 __9,874 _____94,352

(1) Payments in kind for 1,354,213 BOE valued at prices set by the Yemen Crude Oil Marketing Directorate

(2) Payments in kind for 128,853 BOE valued at prices set by the Yemen Crude Oil Marketing Directorate

Vienna, March 11, 2020

The Executive Board Rainer Seele m.p. (Chairman of the Executive Board, Chief Executive Officer and Chief Marketing Officer) Johann Pleininger m.p. (Deputy Chairman of the Executive Board and Chief Upstream Operations Officer) Reinhard Florey m.p. (Chief Financial Officer) Thomas Gangl m.p. (Chief Downstream Operations Officer) Further inquiry note: OMV Aktiengesellschaft Andreas Rinofner, Public Relations Tel.: +43 (1) 40 440-21357; e-mail: public.relations@omv.com Florian Greger, Investor Relations Tel.: +43 (1) 40 440-21600; e-mail: investor.relations@omv.com end of announcement euro adhoc ------------------------------------------------------------------------------- issuer: OMV Aktiengesellschaft Trabrennstraße 6-8 A-1020 Wien phone: +43 1 40440/21600 FAX: +43 1 40440/621600 mail: investor.relations@omv.com WWW: http://www.omv.com ISIN: AT0000743059 indexes: ATX stockmarkets: Wien language: English

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