Linkedin

Nachrichten filtern aufgrund des Datums:

Nachrichten filtern aufgrund Schlüsselwörter:

MOL Group Acquires Eni’s Downstream Business in Slovenia

  • MOL Group continues to expand its retail network in CEE in line with its Downstream strategy
  • Acquired retail network is a perfect match to MOL’s existing network in Slovenia
  • MOL Group will have its first retail presence in Ljubljana with two stations

BUDAPEST, 11th November 2015 – MOL signed an agreement with Eni International B.V. for the acquisition of the entire share capital of Eni Slovenia doo., a company managing 17 Agip branded service stations in Slovenia. The acquired retail network is a perfect match to MOL’s existing network and also provides growth for local wholesale activity.

MOL signed an agreement with Eni relating to the acquisition of Eni’s entire retail network and wholesale activities in Slovenia. The current deal includes 17 Agip branded service stations in Slovenia (including dealer owned sites), which will strengthen MOL’s position among the top three retail network operators in the country. The deal will complement MOL’s current Slovenian network of 40 stations and provides an opportunity to establish a retail presence in Ljubljana.

Closing of the transaction is subject to the fulfilment of certain condition precedents, including the competition clearance.

“We are very glad that with this transaction we are strengthening our position in Slovenia and extending our coverage to the capital, Ljubljana. In the past 18 months we have announced the acquisition of around 450 service stations in the Czech Republic, Hungary, Romania, Slovakia and Slovenia. As a result we are succeeding in significantly increasing our market share and ensuring further overall margin capture for our Downstream business.” – said Ferenc Horváth, Downstream Executive VP, MOL Group.

MOL Group Extends Its Petrochemicals Value Chain

  • MOL Group’s new 130,000 tons butadiene plant has been inaugurated today in Hungary
  • Construction of new synthetic rubber plant to begin in Q1 2016
  • The new 220,000 tons LDPE plant in Slovakia reached mechanical completion
  • New petrochemical units will further increase profitability of MOL Group’s petrochemicals business 

Budapest, 10th November 2015 – MOL Group’s strategic petrochemical projects have reached important milestones. In Hungary, a new butadiene extraction unit has been inaugurated today, while the construction groundwork of the new 60 kt/year capacity plant will begin in November 2015 at the site of MOL Petrochemicals in Tiszaújváros (Hungary). At the same time the new LDPE4 unit in Slovakia has reached mechanical completion and will start commercial production at the beginning of 2016.

MOL Group has been strengthening the competitiveness of its Petrochemicals business with significant investments at its plants in Hungary and Slovakia. In parallel, the new 130 kt/year butadiene extraction unit has been commissioned and full commercial operations are expected to begin in the current quarter. The unit, constructed at the site of MOL Petrochemicals in Tiszaújváros, will produce feedstock material for synthetic rubber. The unit has required capital expenditures of around USD 150mn to date.

Through a joint venture with JSR Corporation (JSR), MOL Group will start the construction of a new plant to manufacture synthetic rubber (S-SBR). This product is one of the most innovative raw materials for safe and fuel efficient tires. The construction groundwork of the new 60,000 tons per annum capacity plant will begin in November 2015 adjacent to the butadiene plant. The partnership with JSR provides MOL Group with the possibility to further expand its petrochemical product portfolio along the value chain, as a stable supply of feedstock material to the new plant will be secured from the butadiene extraction unit. It is expected that mechanical completion of the new S-SBR plant will take place within 2017. MOL Group holds a 49% stake in the joint venture whilst the remaining 51% is held by JSR.

In Bratislava, the construction of the new 220,000 tons per year capacity LDPE4 unit has reached mechanical completion and commercial production is expected to begin in Q1 2016. The new unit, which will replace three out-of-date units with a combined capacity of 180,000 tons per year, will increase production flexibility, reduce production costs, improve product qualities and ensure higher naphtha off-take from the refinery. The unit has required capital expenditures of around USD 350mn to date.

With 1.1 million tons per year external sales, MOL Group holds a leading position in the petrochemicals market in Central Eastern Europe and it’s a top ten polymer producer in Europe. MOL Group’s petrochemical business plays an important role in the company’s integrated Downstream value chain as 11% of the production of its refineries are destined for the two petrochemical plants in Hungary and Slovakia. In the first nine months of this year, MOL Group’s petrochemicals business segment represented 35% of the total Downstream clean EBITDA result.

MOL Group Announces 2015 Third Quarter Results

  • MOL Group achieved all time high quarterly result with HUF 199bn (USD 708mn) clean CCS EBITDA
  • Q1-Q3 clean CCS EBITDA at HUF 532bn (USD 1.92bn), up 46% year-on-year
  • Q1-Q3 net profit at HUF 163.1bn (USD 583mn), more than doubling the results from previous year
  • In Norway, MOL Group farms in to three licenses and submits bids at licensing round

Budapest, 6th November 2015 – Today, MOL Group announced its third quarter financial results. In Q3 2015 MOL Group generated a clean CCS EBITDA of HUF 199bn (or USD 708mn), which is once again the best ever result with the Downstream business remaining the key contributor.

In the first three quarters of 2015 MOL Group delivered a clean CCS EBITDA of HUF 532bn (USD 1.92bn) indicating that the company is fully on track to meet the upgraded 2015 target of USD 2.2bn. Net profit reached HUF 163.1bn (USD 583mn), more than doubling the results from the same period last year.

In Downstream, Q1-Q3 clean CCS EBITDA was HUF 348.5bn (USD 1.25bn), significantly higher than the base period HUF 132.3bn (USD 573mn). As a result of the continuous internal efficiency improvements within the framework of the Next Downstream Program, the Refining and Petrochemicals businesses succeeded in fully capturing the favourable external conditions.

Despite the fact that the oil price in Q1-Q3 nearly halved year-on-year, the Upstream segment’s results decreased by a much smaller extent, 23%. Average hydrocarbon production exceeded the base period by over 7%. In the matured CEE region output grew as a result of successful production intensification initiatives in Croatia by 3,000 boepd or 9%, while decline in Hungary was 1%, significantly below the previously targeted 5% level.

“The all-time high results of the third quarter once again provided evidence of MOL Group’s robust and resilient integrated business model and its ability to leverage the outstanding Downstream operating environment. Our Downstream business continues to surpass every expectation with its exceptional performance on the back of our superior asset base and the very supportive macro. With the uninterrupted delivery of efficiency measures and the expansion of the value chain in both petrochemicals and retail we are well-positioned to seize further opportunities in the segment. In Upstream, I am very satisfied that we have managed to considerably increase production contribution from the mature Central Eastern European fields compared to previous year’s levels, whilst our international projects have faced significant challenges amid low oil prices. With over USD 1.9bn delivered already in the first nine months, we are more than confident of reaching our USD 2.2bn EBITDA target set for this year. Furthermore, despite some likely softening of the downstream macro in 2016, we aim to preserve our strong EBITDA and free cash flow generation next year.” – commented Chairman-CEO Zsolt Hernádi the results.

MOL Group signed a farm-in agreement in October with the Det norske oljeselskap ASA for equity in three licences in the Norwegian Continental Shelf. The licences are located within MOL Norge’s strategic core area. The deal is subject to approval by the Norwegian government. MOL Group has also submitted bids for five new licences in the Norwegian 2015 Awards in Predefined Areas (APA) licensing round. The licenses are expected to be awarded in January 2016.

MOL Group Acquires Eni’s Downstream Business in Hungary

  • Good retail positions in Budapest provide unique growth opportunity
  • Deal fully in line with MOL Group’s strategy of retail expansion and further downstream integration
  • Retail network expansion strengthens MOL Group’s leading role in Central Eastern Europe

BUDAPEST, 21th October 2015 – MOL signed an agreement with Eni International B.V. for the acquisition of the entire share capital of Eni Hungaria, a company managing 183 Agip branded service stations in Hungary (including dealer owned sites) as well as wholesale activities in the country. By increasing the retail presence within the supply radius of its refineries, the deal significantly contributes to MOL Group’s strategy of further downstream integration. 

The investment is fully in line with MOL Group’s strategy to extend its presence and increase significantly the retail market share within the supply radius of its core refineries. The new service stations will further extend MOL Group’s captive market whilst improving its ability to reach end-users. With the integration of this network MOL realizes significant wholesale and retail synergies as well as cost optimization. 

The deal includes the Eni’s retail station business and wholesale activities. The acquisition is a unique opportunity for MOL Group as it includes key retail positions and strengthens our position in and around Budapest.

“This acquisition is yet another important step for our downstream business as it will increase the markets for our refineries, significantly elevate our fuel volumes going through our network and ensure further overall margin capture. I’m glad that with today’s transaction we once again delivered on our promises.” – said Ferenc Horváth, Downstream Executive VP, MOL Group. 

Closing of the transaction is subject to the fulfilment of certain condition precedents, including the competition clearance.

MOL Group Makes Cities and Communities Green

  • The Green Belt Program is a regional environmental protection initiative of MOL Group since 2005
  • The program aims to contribute to the implementation or reconstruction of community green areas
  • Green Belt currently operates in Hungary, Slovakia, Romania, Italy, Croatia and the Czech Republic
  • The environmental program has provided more than 10 million Euros support to local communities since its establishment renewing over 2 million square meters of newly green areas

Budapest - 21 October, 2015 - MOL Group launched its first Green Belt Program in Hungary, Romania and Slovakia in 2005. Over the years, the cross-border initiative has become so successful that in 2014 it was extended to Croatia and Italy. Moreover in this year we are proud to announce that we reached six countries by implementing project in Czech Republic.  

Green Belt Program is implemented in all countries as a joint project of MOL Group and a selected non-governmental organization partner organization, which delivers local knowledge and expertise in environmental matters. The program aims to contribute to the implementation or reconstruction of community green areas and enhances the common realization of local green areas by the active involvement of local inhabitants and organizations.

“The objective of the Green Belt Program is to support the creation, recovery and care of ecologically valuable areas with the active cooperation of non-profit organizations, municipalities and schools. Over the past ten years, this environmental program has provided at group level support to local communities in more than 10 million Euros, who have planted 210,000 trees, flowers and shrubs in over 2 million square meters of newly green areas“, commented Kelenvölgyi Ágnes, Head of MOL Group Corporate Giving’s department. 

The program comprised co-financing of projects such as afforestation, improvement of green areas, clean-up of the seabed, coastal areas, lakes and rivers, education on ecology and other activities in the field of Sustainable Development. It is important to emphasize that these projects are supported and donated by MOL Group companies, but financial contribution and cooperation with local communities is in order to create higher responsibility towards the project.

Together with impressing results achieved during past 10 years, we are glad to say that Volunteering actions integrated through Green Belt project had an amazing response from the local community and resulted in participation of the non-government organizations, local officials, media and MOL Group volunteers in the actions.

We will continually strive to motivate and to participate in such actions in order to make our environment greener!

MOL Group Wins Gold in Cannes

  • MOL Group Corporate Communications receives Gold Award at the 6th Cannes Corporate Media & TV Awards 2015.
  • MOL Group’s UPPP Campaign Video 2014 was honoured as the best video in the category “Integrated Communication”. The campaign ran in 10 countries to attract top talent to MOL Group’s exploration and production division.
  • The prestigious dolphin trophy sits alongside other awards MOL Group Corporate Communications has received for its integrated communications efforts since 2013.

Budapest, 19th October 2015 – MOL Group, a leading international oil and gas company, received the renowned Gold Award at the 6th Cannes Corporate Media & TV Awards 2015. MOL Group’s UPPP campaign video for 2014 impressed judges at the award ceremony in Cannes, with its innovative and exciting approach to engaging students and graduates in the fields of geoscience and petroleum engineering. The film invited them to participate in the company’s UPPP online competition. At one of the world’s most important events for the corporate audio-visual industry, MOL Group competed against 771 applicants from 40 countries.

The “MOL Group – UPPP Campaign Video 2014” was part of an integrated marketing and PR campaign, targeting geoscience and petrotechnical students and encouraging them to apply for the international talent acquisition and development programme UPPP. In an online competition, teams of three compete in virtual scenarios to solve industrial and strategic tasks based on real data from MOL Group’s oil exploration and production facilities. The film illustrates this approach in a highly creative and futuristic way. The story and video was produced by the Hungarian creative agency Greenroom Ltd.

"It is a great honour to win this highly respected award for our integrated communications efforts”, says Dominic Köfner, Vice President for Corporate Communications at MOL Group. “This award reflects the creativity and innovative spirit of our company, and the top students and graduates that we want to attract”.

You can watch the trailer of the winning film here: http://youtu.be/5r42eLzhHeM

For more information about UPPP please visit: www.uppp.info and www.facebook.com/moluppp

About the Cannes Corporate Media & TV Awards
The Cannes Corporate Media & TV Awards are held annually in one of the most important film centres - Cannes, France - and honour the world’s finest corporate films, online media and TV documentaries. It is the only festival for corporate films that takes place in Cannes, the city famously known for feature films and advertising productions. The international competition is open to film producers, clients, agencies, TV stations and students.

About the UPPP Competition
UPPP is a special competition to promote MOL Group among upstream graduates. Students, who are currently enrolled at a college or university, and studying geosciences or petroleum engineering, have the opportunity to apply for the competition. They first compete via an online platform by solving industrial and strategic tasks. The top teams are then invited to live finals in Budapest and compete for a 25,000 EUR prize pot. In addition, the best students passing a further selection process may receive a job offer, or benefit from the opportunity to participate in an 18-month technical placement programme. Students who are not in the final year of their studies will be offered scholarships, participation in training and options for a summer internship.

About MOL Group
MOL Group is an integrated, independent, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 40 countries with a dynamic international workforce of 27,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 8 countries and exploration assets in 14 countries. MOL Group operates four refineries and two petrochemicals plants, under integrated supply chain management, in Hungary, Slovakia and Croatia, and owns a network of nearly 2,000 service stations across 11 countries in Central & South Eastern Europe.

MOL Group’s Adventure for Students: UPPP 2015

Your adventure awaits…

  • MOL Group welcomes applications from geoscience and petro-technical students from all over the world for enrolment in the international E&P programme UPPP
  • Registration for the UPPP online simulation game will be open from September 24th to October 15th.
  • The top three teams will win a total of 25,000 EUR and the most talented applicants may get an opportunity to start their career at MOL Group, through the "UPPP Technical Placement Programme"

Budapest, 24th September 2015 – MOL Group is launching its international talent acquisition programme UPPP, now in its second year. This year’s motto “Your adventure awaits...” reflects the very essence of the contest. Students are invited to apply for the programme via the UPPP online simulation game before October 15th, where they will compete in virtual scenarios over the internet, solving industrial and strategic tasks developed by MOL Group. The top three teams will then compete for the main prize, while the best talents may have the chance to kick-start their career at MOL Group through our 18-month “UPPP Technical Placement Programme”.

Students whose major field of study is geoscience, petro-technical or engineering project management are invited to enrol in the online competition at www.uppp.info from September 24th to October 15th. To prepare for the online simulation game they need to invite friends or look for potential teammates in the registration database, and select based on country, university or specific field of study. The top five teams will compete in the live finals in Budapest for a total prize pot of 25,000 EUR, while the best talents may receive job offers or a chance to take part in the “UPPP Technical Placement Programme” at MOL Group.

MOL Group is also encouraging young female students to apply for the UPPP programme. Hina Arshad is a young woman working as an assistant production engineer at MOL Pakistan. Her advice to the next generation of UPPPers: “Participants will experience opportunities, challenges and diversity. Students will be able to test their skills and technical knowledge, and challenge themselves on how effectively they can apply these to create value and be productive. They will interact and work with other students from diverse backgrounds and cultures. Believe in yourselves, step forward and prove yourselves!”

Zdravka Demeter Bubalo, HR Vice President of MOL Group added, "We are proud of our award-winning talent acquisition programmes which challenge traditional ways of hiring future employees and offer a unique approach to supporting the development of young professionals. This year we continue the adventure with even bigger enthusiasm and offer qualified top students real-life challenges and the opportunity to join MOL Group’s Upstream division. The UPPP programme is dedicated to those students who are searching for new adventures and want to start their careers in the oil and gas industry."

The 18-month technical placement programme is based on four pillars, which include practical experience, structured theoretical curricula with a focus on business and technical content, and training units that will give insights into MOL Group work. The main objectives are to develop essential entrepreneurial skills and technical expertise.

For more information about UPPP please visit: www.uppp.info and www.facebook.com/moluppp

About the UPPP Competition
UPPP is a special competition to promote MOL Group among Upstream graduates. Students, who are currently enrolled at a college or university, and studying geosciences or petroleum engineering, have the opportunity to apply for the competition. They will first compete via an online platform by solving industrial and strategic tasks. The top teams will be invited to live finals in Budapest and compete for 25,000 EUR prize money. In addition, the best students passing a further selection process may receive a job offer or benefit from the opportunity to participate in an 18 month technical placement programme. Students, who are not in the final year of their studies, will be offered scholarships, participation in training and options for a summer internship.

About the UPPP Technical Placement Programme
The "UPPP Technical Placement Programme" is an 18-month development programme for young professionals that focuses on the Exploration & Production sector. The programme is based on four pillars, which entail practical experience and training modules. The main objectives are to develop essential entrepreneurial skills and technical expertise at the same time.

About MOL Group
MOL Group is an integrated, independent, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 40 countries with a dynamic international workforce of 27,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 8 countries and exploration assets in 14 countries. MOL Group operates four refineries and two petrochemicals plants, under integrated supply chain management, in Hungary, Slovakia and Croatia, and owns a network of nearly 2,000 service stations across 11 countries in Central & South Eastern Europe.

MOL Group Announces Tenth Discovery in Pakistan

  • MOL Group announces new crude oil, condensate and natural gas discovery in Karak Block
  • MOL Pakistan (100% subsidiary of MOL Group) has a proven track record in Pakistan since 1999

Budapest, 18th September 2015 –Today, MOL Group announced that a new crude oil, condensate and natural gas discovery was made in Karak Block, Pakistan. The block is operated by Mari Petroleum Company Limited (MPCL) with 60% working interest while MOL Pakistan Oil & Gas Co. B.V has 40% in the block.

MOL has a well-established presence in the country with five blocks and over 15 years of successful operation. This is the 10th discovery since 1999 in 3 different blocks.

Kalabagh-1A ST1 discovery is the Joint Venture’s second success in the Karak block after its first crude oil discovery made at Halini-1 Exploratory Well-1 in 2011. Based on a comprehensive 3D seismic campaign the structure was confirmed as an independent closure at about 8km distance from Halini discovery.

Kalabagh-1A ST1, spud-in on March 20, 2015, has been successfully drilled down to a depth of 3,003 meters. During testing, the well flowed gas and condensate in Datta Formation at a rate of 618 boepd and 160 bblpd, respectively. In the Samanasuk Formation it flowed gas and condensate at a rate of 877 boepd and 180 bblpd, respectively. Finally, the testing of Lockhart Formation flowed commercial quantity of crude oil at 500 bblpd.

Mr. Akos Grosz, CFA, Managing Director of MOL Pakistan added:

“MOL is committed to help alleviate the energy deficits of Pakistan by maximizing exploration and enhancing current production through cutting-edge technologies”.

For a video about our Pakistani operation please click here.

MOL Group Hires 200 Top Talents for Its GROWWW Programme

"Every journey to the top starts with the right choice!"

  • Real-life challenges await the next generation of GROWWWers who kick off their international careers at MOL Group and join us in shaping the world through the oil and gas industry.
  • GROWWW offers top talents a unique Business Education Program beyond relevant professional challenges.
  • Since the start of the programme in 2007, 1,770 GROWWWers have joined MOL Group. 83% of them are still at the company and 37% have been promoted.

Budapest, 16th September 2015 – Today MOL Group, a leading international oil and gas company, welcomes freshly hired graduates as they start their international careers. During a two-day MOL Group OnBoarding event, held in Zagreb this week, 200 young professionals gained insights into the positive energy that MOL Group. MOL Group launched GROWWW in 2007 and it has proven to be a great solution for finding and attracting talents. 1,770 graduates have been hired through the programme with a best-in-class retention rate of 83%.

“We are proud to offer 200 ambitious, qualified top talents the opportunity to be part of MOL Group’s recruitment and development programme GROWWW as they start their international careers. With the GROWWW programme, young graduates receive the best possible opportunity to face real-life business challenges and actively shape the world through the oil and gas industry with their own positive energy”, said Zdravka Demeter Bubalo, HR Vice President of MOL Group.

From March 2015, graduates from Bosnia and Herzegovina, Croatia, the Czech Republic, Hungary, Italy, Pakistan, Poland, Romania, Serbia, Slovakia and Slovenia were able to apply to the GROWWW programme. Over the three-month application period this year, more than 10,000 candidates from various fields, including engineering, economics, geosciences and social sciences applied to GROWWW.

“With GROWWW I got an opportunity to start my career on an international level. During the one-year programme I had a chance to learn and experience how the oil and gas industry operates. MOL Group made a great decision when setting up this programme, as it helps fresh graduates to recognise their strengths and weaknesses, and see how they can develop personally and professionally. This was an excellent foundation for me to continue working in the company and deal with the everyday challenges of my current job as an HR partner”, said Dino Lučan, former GROWWWer.

During the intensive one-year programme, the students will gain insights into the industry by participating in the Business Education Programme (BEP) and establishing and developing professional relationships. Each GROWWWer is mentored by a senior colleague and can use MOL Group’s “SpingMe” application, which helps them to monitor and develop their personal knowledge and skills, including cultural awareness.

After finishing the programme, most of the GROWWWers can continue their career at MOL Group in expert, specialist or even manager positions. The majority have been part of MOL Group’s diverse workforce since the programme started in 2007 and remained at MOL Group. The GROWWW programme encourages women to accelerate their professional growth, and drew in a remarkably high percentage of female applicants this year (35%),. 35% is above average for the oil and gas industry and what’s even more remarkable is that it’s above the average for MOL Group. 1,770 GROWWWers have been recruited since the programme started in 2007 and 37% of former programme participants have been promoted in the company.

With the outstanding GROWWW programme, MOL Group aims to develop and maintain a talent pipeline to accommodate its business needs. Through their award‐winning talent acquisition and talent development programmes GROWWW, FRESHHH and UPPP, MOL Group and its member companies have become some of the most attractive employers in the oil and gas sector.


About MOL Group
MOL Group is an integrated, independent, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 40 countries with a dynamic international workforce of 27,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 8 countries and exploration assets in 14 countries. MOL Group operates four refineries and two petrochemicals plants, under integrated supply chain management, in Hungary, Slovakia and Croatia, and owns a network of nearly 2,000 service stations across 11 countries in Central & South Eastern Europe.

Operational Update on Akri-Bijeel Block

  • In light of recent well test results MOL Group has minimized investments in the Akri-Bijeel Block
  • MOL Group remains committed to maximize the value of its investments in the Kurdistan Region of Iraq and will continuously evaluate options for further growth in the region

BUDAPEST, 8th September 2015 – In light of recent well test results that further confirmed greater geological complexity, MOL Group has minimized its investments in the Akri-Bijeel Block, located in the Kurdistan Region of Iraq. Preliminary results of the Competent Person’s Report, prepared by Gaffney, Cline & Associates, are fully in line with MOL Group’s updated internal estimations regarding the block’s geological potential. Despite the revised geological potential, MOL Group intends to maintain the operated Akri-Bijeel license and optimize production from Bijell-1B well.

Kalegran B.V., a 100% subsidiary of MOL, is nearing completion of Phase I of the Field Development Plan (FDP) in the Akri-Bijeel Block, located in the Kurdistan Region of Iraq. As previously announced in the Q4 2014 Financial Report of MOL Group, results of Bijell-4, Bijell-6 appraisal wells on the Bijell area did not encounter movable hydrocarbons. Additionally, the latest delineation wells in the Bijell and Bakrman areas of the Block have further confirmed greater geological complexity. In light of the aforementioned developments, the geological model of the block has been updated.

To provide further assurance of the technical evaluation of Phase 1 of the FDP, MOL Group has commissioned a Competent Person’s Report (CPR). Preliminary results of the CPR, prepared by Gaffney, Cline & Associates, are fully in line with MOL Group’s updated internal estimations regarding the block’s geological potential. According to the CPR the current best estimate for Stock Tank Oil Initial-in Place (STOIIP) concerning the Bijell area is 73 million barrels of oil equivalent (boe) with a Contingent resource estimate of around 4 million boe based on the current development plans. The STOIIP figure of the Bakrman area amounts to 44 million boe, albeit with a high hydrogen sulfide content, which makes development of the field uneconomical (all figures 100% gross). Therefore MOL considers 4 MMbbl as the current Recoverable Resource Potential (RRP) for the Block.

Besides the complex geology, existing uncertainties around the regular payment cycles for export sales also work against attractive project economics. Therefore MOL Group, as a responsible operator through its wholly owned subsidiary Kalegran, is minimizing investments in the Akri-Bijeel Block. The expected investment level for the remainder of 2015 is below USD 10mn. MOL maintains the group level USD 1.3bn annual CAPEX target. In addition MOL Group has also embarked upon a comprehensive efficiency improvement program on its Kurdistan operation with the purpose of optimizing general and administrative expenses.

Despite the revised geological potential, MOL Group intends to maintain the operated Akri-Bijeel license and optimize production from Bijell-1B well, which is expected to remain around 2,200 boepd in 2015. In case of higher level and regular repayments, consideration will be made to tie in of other Bijell well (Bijell-2).

A new commercial arrangement for domestic oil sales was concluded on 1st July to ensure revenue stream for ongoing production.

MOL Group expects the final results from the CPR process by mid-September, which will serve as a basis for the streamlined future work program of the Akri-Bijeel Block. The completion of the CPR is expected to trigger a write-down of past Akri-Bijeel investments in the Q3 2015 Financial Report. The total current book value of Akri-Bijeel investments in MOL Group's IFRS balance sheet amounts to USD 440mn.

MOL Group remains committed to maximize the value of its investments in the Kurdistan Region of Iraq and will continuously evaluate options for further growth in the region.

×