OMV Starts Arbitration Proceedings Against Romanian State For Recovering EUR34M Environmental Costs

As part of the privatization agreement regarding OMV Petrom, OMV is entitled to the reimbursement by the Romanian state of part of wells abandonment (decommissioning) and environmental costs incurred to restore and clean up areas pertaining to activities prior to privatization in 2004.

“Other sundry receivables include a claim amounting to EUR 542 mn (2015: EUR 568 mn) against the Romanian State related to obligations for decommissioning and restoration costs in OMV Petrom SA. The receivables consist of EUR 72 mn (2015: EUR 53 mn) for costs relating to environmental cleanup and EUR 469 mn (2015: EUR 515 mn) for costs relating to decommissioning. In April 2016, OMV submitted to the Romanian State a notice of dispute regarding certain notices of claims unpaid by the Romanian State in relation to certain well decommissioning and environmental restoration obligations amounting to approximately EUR 34 mn. Starting with the serving of the notice of dispute, based on the Privatization Agreement, OMV and the Romanian State had 180 days to amicably resolve this dispute. This deadline expired on October 19, 2016 and on March 7, 2017, OMV initiated arbitration proceedings against the Romanian State, in accordance with the ICC Rules,” OMV group said.

 

 

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