MOL sees hydrocarbon output edging down to 135,000 boepd in 2012
Hungary's MOL said it expects its hydrocarbon production to reach 135,000 barrels of oil equivalent per day (boepd) in 2012, the oil and gas company said in an updated investor presentation on Friday.
MOL said the projection stands for a "business as usual environment".
MOL's hydrocarbon output averaged 147,400 boepd in 2011, according to the company's Q4 earnings report published early Friday, up 3% from 2010.
MOL's upstream segment remained the main profit driver of the group in 2011, generating more than 70% of EBITDA, the company said in the investor presentation.
MOL put the group's proven plus probable reserves, according to Society of Petroleum Engineers criteria, at 682 million boe at the end of 2011. The company's estimate for unrisked recoverable resource potential was 1.4 billion boe.
MOL said the biggest potential was estimated to be in the Akri-Bijeel and Shaikan blocks in the Kurdistan Region of Iraq, where the company and its partner plan to intensify exploration and appraisal programs to fully explore the blocks' potential.
Because of the exploration-driven strategy in the previous years, MOL said its reserve replacement rate is expected to reach an average 130% in the next three years. It added that the elevated reserve level would provide a good basis for the estimated 3-4% production increase from 2014.
MOL said it intends to maintain its strong financial position, adding that there was "no pressure" for additional external financing in 2012 because of the company's diversified maturity profile.
MOL said it targets up to $2 billion in annual CAPEX in 2012-2014 which it intends to finance from operation cash flow. Investments in the upstream segment will account for about half of the planned CAPEX.
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