Austrian oil group OMV embarks on restructuring

The company will divest almost 50% of its gas distribution network as part of the portfolio shake up

Austrian oil group OMV plans to rationalise its portfolio by divesting up to 49% of its gas distribution network Gas Connect Austria, while fully taking over its gas marketing subsidiary EconGas. Its latest plans under its “Fit for Fifty” strategy, which assume a Brent oil price of $55 per barrel in 2016, continue to include close business links with Russian gas giant Gazprom. The company said on 19 October it expects to announce a roughly €1bn ($1.1 bn) impairment charge on upstream assets in its third quarter results. "We are taking the appropriate measures to both optimize the portfolio and strengthen the group's cash flow and balance sheet", said OMV downstream and gas chief Manfred Leit