Reuters: OMV profits drop as Libya crisis causes higher costs

Austrian oil and gas group OMV's underlying operating profit halved in the second quarter as an ongoing crisis in Libya forced it to raise production in higher-cost countries.

OMV, which is investing heavily in new exploration projects to cut its reliance on margin-squeezed refining and marketing, said its production costs rose 42 percent per barrel due to a greater contribution from Norway and higher costs in Romania.

Production was stable in the second quarter as OMV compensated for virtually zero output from Libya with more barrels from newly acquired fields in the Norwegian North Sea, where oil is offshore and more expensive to recover.
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