Hungarian oil and gas company Mol Nyrt announced today that it signed petroleum concession agreements on Wednesday with the Islamic Republic of Pakistan on two exploration blocks, Margala and Margala North.
Margala and Margala North Blocks, with an area of 1387 and 1562 square kilometer respectively, are situated in the eastern part of the productive Potwar Basin of northern Pakistan, in the vicinity of Islamabad. According to expectations, similarly promising geological structures exist as in case of producing fields in the environs of the block. 100% of the blocks is currently owned by Mol, but in the near future Mol Pakistan, as per the requirement of the agreement, shall involve local Pakistani qualified partner(s) to take up a minimum of a 15% share in both blocks on a ground floor basis.
The planned work programs for the two blocks are similar, including a 200 kilometer 2D seismic acquisition with the opportunity of drilling an optional exploration well in the third year. The exploration budget commitment for the firm two years program is €1.6 million ($2.1 million) for each block. Pakistan is one of Mol’s core exploration and production regions. The market for oil and gas has great potential due to the high and continuously growing demand of the country. Mol is already present in Pakistan through Tal Block in North-West Pakistan and will benefit from its experiences in the Margala area. Zoltán Áldott, executive vice-president of the Exploration and Production Division commented: “Pakistan is a primary focus in Mol’s upstream development in the region. Our strong objective is to increase exploration and production activity in the country and acquiring these two promising exploration blocks as an operator will help us achieve this target.” (bet.hu)