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MOL plans to invest $87m in Siberia this year

Hungarian oil and gas company MOL invested $154m between 2007 and 2010 at the oil fields in Russia's Matyushinskoye block (Siberia) and plans to invest $87m this year, Laszlo Gerecs, the MOL group's Russian field development and production manager told MTI on Friday.

MOL plans to spend further substantial amounts on developments at the site in the next three years on exploration, drilling new petroleum production wells and financing the first phase of a 90-km oil pipeline, he said.

The investments are also required because MOL has to build all infrastructures there from roads to power supply.

Gerecs added that the MOL group projects a substantial production increase from the block in the short and mid-term, over the next 2-3 years, as a result of the intensive investments in the Matyushinskoye block. Around 40% of the group's oil production comes from Russia, at 19,200 barrels per day last year, which is expected to grow in the near future.