MOL Makes Oil Discovery on Outskirts of Budapest

Energy Trade

Hungarian oil and gas company MOL on Monday announced the discovery of a "significant amount" of crude oil on the outskirts of the capital, according to a report by state news wire MTI.

MOL made the discovery at a depth of 2,100 m on the edge of Vecsés during exploratory drilling that started in July.

Production at the new well is starting at 600 barrels a day, but is expected to rise to 700-1,000 later. The discovery could boost MOL Magyarország's hydrocarbon production by around 10% and total crude production in Hungary by 5%.

The well, MOL's third-biggest in Hungary, is capable of offsetting the decline in production at the company's field in Algyő (157 km southeast of Budapest).

Crude from the well, which started producing on November 11, is being shipped directly to MOL's main Danube Refinery, south of the capital.

MOL chairman-CEO Zsolt Hernádi said "every drop" of crude exploited in Hungary contributes to reducing the country's energy dependence. He added that MOL plans further drilling in the Vecsés field.

MOL produced 3.5 million barrels of crude in Hungary last year, about half of the total exploited in the country. It also produced 1.4 bln cubic meters of gas, around 90% of total domestic production.

Local production accounts for around one-third of MOL Group's upstream portfolio at present.

MOL plans to plow close to HUF 200 billion into upstream investment in Hungary in the coming five years. Between 60% and 65% will go toward gas and 20-25% toward crude production.

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