OMV said it has revised its oil price assumption for coming years and will take special charges in the third quarter of the year of around €1billion in its upstream business.
The move comes after production fell to 292,000 barrels of oil equivalent per day from 307,000 in the previous quarter and 311,000 in the same quarter last year.
The Austrian company said the decline in oil price had “significantly burdened” its performance in the quarter.
A spokesman said: “These revised assumptions have required impairments to asset valuations in the upstream business, covering both assets under production and development, as well as
exploration assets, to be recognized during the quarter.
“Net special charges recorded in the quarter, predominantly as a consequence of the reduced oil price assumptions, will amount to approximately 1 billion euros.”
The company’s third quarter earnings are expected to be reported next month.
OMV has revised its assumptions for Benchmark crude prices for $55 a barrel next year, $70 a barrel in 2017 and $80 a barrel in 2018.
It estimates a barrel will cost around $85 from 2019 onwards.
OMV said it also plans to sell a stake of up to 49% in its pipeline unit Gas Connect Austria and said buyers had expressed “strong interest” and a deal was expected to be signed next year.