OMV takes steps to offset Schwechat refinery shortfalls

BERLIN (Reuters) -Austrian oil and gas group OMV is implementing measures to make up for shortfalls at its Schwechat refinery after a mechanical incident damaged a crude oil distillation unit last week, it said on Friday.

The measures, combined with the part of strategic fuel reserves Austria released after the incident, should be enough to bridge the supply gap at OMV petrol stations until repairs are over, a spokesperson said.

OMV is unsure how long the repairs will take because experts are still checking what caused the abnormal release of steam observed during a routine check on water pressure in the distillation unit, the spokesperson added.

It said last week that the incident would partially delay the restart of the refinery, which had been undergoing a maintenance overhaul since April.

European refinery margins and fuel costs for consumers have hit record highs in the aftermath of Russia’s invasion of Ukraine, with Russian barrels of crude oil and diesel set to disappear from EU infrastructure by next year.

OMV said it was using capacity from its refinery network to make up for lost production at Schwechat and is considering short-term adjustments to further increase the Schwechat refinery’s existing production capacity.

The company also said it would cooperate with partners to buy in products to make up for shortfalls.

(Reporting by Maria Sheahan and Zuzanna SzymanskaEditing by Miranda Murray and David Goodman)