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MOL does not participate in board meeting of JV with Russneft

Hungarian oil and gas company did not participate in Monday's board meeting of ZMB, the joint-venture company that MOL established with Russian peer Russneft to operate the Zapadno-Malobalyk oil field in western Siberia, the Russian daily Kommersant wrote.

The newspaper reported that ZMB therefore made no decisions at Monday's board meeting, which was called to consider the construction of a power plant at the oil field to use otherwise stranded gas and prevent Russia's mining authority from withdrawing the JV's license to conduct operations in the field. Russia's mining authority said that it would withdraw the license for the field if ZMB did not use at least 95% of the gas released from oil wells at the site by 2016, as stipulated in the contract. Russneft proposes building an RUB 800 million 16MW power plant by the end of the year in order to save the license for the field, Kommersant said. Last year some 68 million cubic meters of gas was released as a byproduct of oil extraction at the field. This year, about 55 million cubic meters is expected to be released. Both MOL and Russneft maintain three members on ZMB's six-person board. (MTI-Econews)