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MOL plans HRK 20bn CAPEX at INA in 2011-2015

Hungarian oil and gas company MOL on Friday said it plans to make HRK 20bn (MNB2.7bn) of investments at its Croatian unit INA by 2015, "subject to the available financing sources".

About two-thirds of the investments will be made in Croatia, MOL said.

In the exploration and production segment, INA plans to pursue an exploration-led growth strategy by developing existing projects and through potential inorganic steps. INA targets a reserve replacement of 100% and wants to maintain production levels at least 70,000 boepd.

In the refining and marketing segment, INA targets a USD 250m improvement in EBITDA by 2015 through efficiency improvements. Investments in technology for residue conversion are planned at INA’s Rijeka refinery and maintenance-type as well as health, safety and environment investments are planned at the Sisak refinery. Investments in the pipeline that connects the two refineries are also part of the strategy.

In the retail segment, INA plans to raise its ROACE over 10% and boost its competitiveness by continuing to modernise its retail network.

The 2011-2015 strategy was unanimously approved by INA’s board of directors after consultations between MOL and the state of INA, the two biggest shareholders in the company.