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MOL makes oil discovery in Hungary

Hungarian oil and gas company MOL has discovered a significant amount of oil at a depth of 2100 metres near Vecsés, Hungary, in an area where it started exploratory drilling in July. The field started producing an initial 600 barrels per day (bpd) on 11 November, with plans to raise output to 700-1,000 bpd.

The discovery could increase the crude oil production of MOL Hungary by 10 per cent and the country’s oil output by 5 per cent. The new oil well is now MOL’s third biggest in Hungary, which supplies directly the Dunube Refinery in Százhalombatta.

“Every drop of crude oil extracted in Hungary contributes to reducing the country’s energy dependence, which is why we are very pleased with this success. Stocks currently in production are constantly depleted, this is part of a natural process,” commented Zsolt Hernádi, President and CEO of the MOL Group.

He poined out that MOL is making huge efforts to keep production at the same level and spent 133 billion forints (325 million eros) on this in the last 5 years, otherwise production would decrease by 15-20 per cent every year.

In the years, MOL found several shallow gas fields and put them into production. The new discovery on the other hand is a deeper oil field and MOL is planning further drilling in the area to exploit the field and increase production, revealed the President and CEO of MOL.

MOL is the largest hydrocarbon producer in Hungary, supplying around half of the country’s crude oil (3.5 million barrels) and 90 per cent of its domestic production of natural gas (1.4 billion m3).

Over the next five years, MOL plans to invest almost 200 billion forints (490 million euros) in the development of Hungarian crude oil and natural gas production, with 60-65 per cent for natural gas, 20-25 per cent for crude oil, and the rest for the maintenance and replacement of the infrastructure.

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