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Mol closes purchase of NWOG-MOL after approval by Russian competition office

Hungarian oil and gas company Mol Nyrt closed on Tuesday the purchase of 100% of NWOG-MOL from Russia's North-West Oil Group (NWOG) following approval by the Russian competition office, Mol announced on Thursday.

Mol said it would pay NWOG €12.2 million for the stake in an agreement signed on October 9. NWOG-MOL's only asset is an exploration licence for the Surgut-7 block in Western Siberia. The licence is for four years of exploration, which may be followed by 18 years of production. The cost of the work program is about €4.7 million, Mol said. The exploration area covers 330 square kilometers and is surrounded by several oil fields, including the ZMB, Malobalyk, Sredne Balyk and Chupalskoye fields with combined reserves 15 million-75 million tons. A major pipeline passes 8 kilometer from the edge of the block, and the surface facilities of the ZMB field could provide synergy in case of a discovery. "Mol assigns an important role to the acquisition of further prospects in its Russian upstream strategy, in order to establish future production. The Surgut-7 block’s geographical location, its vicinity to the ZMB field is a promising opportunity for Mol to extend its activities in Russia", Zoltán Áldott, executive vice-president of Mol's exploration and production division said in the announcement. (Mti-Eco)