Analysis of the Mission and Vision
Analysis of the mission and vision of OMV Petrom company and SWOT analysis Name: OMV PETROM S. A. Primary business/ activity: The company has activities in the business segments of Exploration and Production, Refining, Marketing, Gas and Power. Major markets: Petrom has proved oil and gas reserves of 854 mn boe, a maximum refining capacity of 8 million metric tones per year, approximately 540 filling stations in Romania and 270 filling stations in Moldova, Bulgaria and Serbia. Short history: 856: First production, in Ploiesti, of lamp oil to be used for street lightening 1999: Petrom signed an agreement with Universal Oil Products USA in view of the modernization of Arpechim and Petrobrazi subsidiaries. 2005: Petrom launches the first PetromV filling station 2006: Acquisition of 99.
9% of the shares in OMV Romania, OMV Bulgaria and OMV Serbia; Acquired from MOL 30 filling stations and 95% stake in Aviation Petroleum; 2010: The company‘s new name is OMV PETROM S. A. following the Decision of the Extraordinary General Meeting of Shareholders held on October 20, 2009. The company‘s brand and logo remain unchanged. In September the company announced having entered a partnership for onshore exploration with Hunt Oil Company of Romania, an affiliate of the American company Hunt Oil, one of the world’s largest privately owned oil companies. Mission and vision statement Mission They discover, produce and process oil ; gas and distribute fuels and other oil products in order to provide Romania and neighboring regions with energy and mobility.
The sustainable and profitable growth of their company is of benefit to their shareholders, customers, employees and the Romanian economy in general and is therefore at the focus of all their activities. Vision statement They committed themelves to consolidating their position as leading oil and gas company in South-Eastern Europe, leveraging on their role as the OMV Group operational hub for marketing in South-Eastern Europe and for exploration and production in Romania and the Caspian region.
SWOT Analysis STRENGHT: – leader in the Southern European upstream market; – strict cost management and focused investment program; – large scale application of proven and new technologies; – high degree of integration with domestic crude resources and regional distribution outlets; – high product and service quality and environmental standards; – strong brand and leading position in the Romanian market; – one of the leading producers and marketers in Romania; WEAKNESSES – high refining costs; the decrease of production in the last 4 years; – old transport capacity; – high costs for product manufacturing taking into consideration that the distribution prices are among the lowest on the market; OPPORTUNITIES – enter new foreign markets of distribution; – improving technology in refineries to reduce production costs; – increase market share; – make new investments; – consolidate the relationship between the company and client;
THREATS – lack of idle money in the economy; – the increase of oil imports; fast development of other producers; – high taxation; Conclusion Petrom, the most important Romanian oil company with activities in Exploration and Production, Refining, Marketing, Gas and Power, has reserves estimated to approximately 1 billion beo, with an 8 million tone annual refining capacity and 553 stations. After the privatization from 2004, when the company became part of OMV group, forming the biggest integrated oil and gas group from East-South part of Europe, Petrom is about to become more flexible and modern.
To become a more profitable company, with a stable oil and gas production in Romania, with actions consolidated in Caspic Sea area, and with a bigger international presence in the region, the company has started a modernization process designed to improve the operation costs and the performance. With a 3 billion euro turnover and 43.
000 employees, Petrom started an investment program in the activities and basic operations of the company.