Are you sure?

MOL to invest HUF 370 billion in 2011, raise production

Hungary's top oil and gas company MOL is planning to invest HUF 370 billion (€1.4 billion) in 2011, 11% more than last year, company officials said at a Tuesday press conference.

Similar to last year, the largest sum will go to MOL's upstream (exploration and production) operations, including a gas field in Syria developed by MOL's Croatian unit INA, as well as various oil and gas drilling and field development projects in Russia, Iraqi Kurdistan and Pakistan.

In downstream (refining and marketing), MOL will focus on continuing the modernization of INA's Rijeka refinery, and will also upgrade its filling station networks in Croatia and Slovakia, among others.

MOL plans to increase average daily oil and gas extraction from 143,500 boepd (barrels of oil equivalent per day) last year to around 150,000 boepd in 2011, led by increasing gas production in Syria.

Meanwhile, total product output at MOL's refineries in Hungary, Slovakia, Croatia and Italy is expected to reach 23,000 kilotons this year, up from 21,800 in 2010. This will be the result of slightly increasing diesel demand in the region from industry and shipping; gasoline consumption by private motorists is expected to remain stagnant.

MOL CEO György Mosonyi said the company expects oil prices in the range of $80–100 per barrel this year. The company calculates with an average gasoline refinery margin of $120 per ton, slightly below the 2010 average of $133/t, while diesel refinery margins are projected in the range of $90–110/t, matching the average for the last months of 2010. (BBJ)