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MOL and O&GD Discover New Oil Reserve Near Tura

Energy Trade

MOL and O&GD have discovered a new oil reserve near the town of Tura (about 44 km northeast of Budapest) in Hungary, according to a press release sent to the Budapest Business Journal.

The successful drilling is the result of a joint research effort between MOL and O&GD, which commenced after MOL acquired a 49% stake in O&GD's three exploration concessions in the summer of 2023.

Trial production has already commenced. Currently, approximately 1,000 barrels of crude oil are being produced daily from the new site, which is being processed at the Danube Refinery.                 

In the so-called Paleogene Basin, a geological unit located not far from Budapest, there are currently four exploration concessions, of which MOL has the Dány area. MOL has achieved significant success here in 2022: the Vecsés-2 well in the discovered oil field has now become one of MOL's highest-yielding oil wells in Hungary, with a production of 1,400 barrels per day, but the Tóalmás-Eszak oil field, which has been successfully producing since 2016, is also located nearby.

O&GD has previously won three exploration concessions (Mogyoród, Nagykáta, and Ócsa), in which, following regulatory approvals, MOL acquired a 49% stake in the summer of 2023. The partnership is based on professional cooperation and knowledge sharing: the parties jointly determined the drilling targets, and they shared the costs and risks. O&GD is the operator of the activities in Tura, thus responsible for project execution, while MOL plays an active role as a partner through participation in decision-making processes.

The Tura-D-3 well, where the drilling started last summer, reached a depth of 2,100 meters and encountered the oil reservoir. The well is currently producing approximately 1,000 barrels of crude oil per day, with O&GD and MOL sharing the extracted quantity in a 51%-49% ownership ratio. For MOL, this means about 500 barrels per day, which is about 1% of the MOL Group's average daily oil production in 2023 and 5% of MOL's Hungarian oil production.

"I am extremely proud of the incredible Exploration and Production team of MOL Hungary, who are working tirelessly to access as much hydrocarbon from domestic sources as possible for the country. It is of the utmost importance for us to seize every opportunity, increase domestic production volumes, and reduce Hungary's dependence on imports. The discovery in Tura is the result of efficient professional collaboration, and we are delighted that our joint research with O&GD has led to success so quickly" said György Bacsa, CEO of MOL Hungary.

"O&GD Central Ltd. was established over a decade ago with the goal of successfully obtaining Hungarian concessions by applying state-of-the-art North American exploration and drilling technologies to extract hydrocarbons in the Pannon Basin. We were thrilled when MOL, a leading energy company in the region, joined as a partner in three of our concessions, and we were able to capitalize on our joint efforts with production in a short time. "I am absolutely convinced that our collaboration will not only benefit both companies, but also contribute to ensuring the security of Hungary's energy supply, thus serving the most fundamental interests of consumers," said DAndrás Csapó, CEO of O&GD, with great enthusiasm.

MOL is the largest hydrocarbon producer in Hungary. In 2023, MOL provided over 40% of domestic oil production (nearly 500,000 tons) and over 90% of natural gas production (almost 1.5 billion cubic meters). Hungary is also a significant contributor to the MOL Group's oil and gas production portfolio, currently accounting for approximately 35% of the total production.

MOL Hungary has ambitious investment plans in Exploration and Production. Over the next five years, it plans to invest tens of billions of forints in Hungary's oil and gas production. Nearly 60-65% of this investment is earmarked for natural gas, 20-25% for oil, and the remainder is aimed at ensuring the safe maintenance and replacement of infrastructure.

Since its establishment in 2012, O&GD has been fortunate to secure significant concessions in Hungary. Currently, it conducts hydrocarbon exploration on an area covering 5,500 square kilometers. With 35 producing wells, O&GD is proud to be the third-largest hydrocarbon producer in Hungary. 2023 concluded with notable successes for O&GD, as it executed a substantial drilling program, bringing four successful gas wells and the Tura oil well into production.

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