The Pannonian Basin is the home turf for MOL Group Exploration & Production, having accumulated over 80 years of experience in conventional exploration and field development. Hungary is still the backbone and one of MOL Group’s core countries in terms of production and reserves on portfolio level, and a significant contributor to MOL’s cash flow generation. The extensive geological knowledge of the country and a well-developed existing surface infrastructure supports a sustainable and efficient operation. In the last 5 years, the Production Optimization Program was launched and delivered visible results in value generation.
MOL Hungary accounts for almost 35% of MOL Group’s hydrocarbon production, with more than 950 producing wells. Production is concentrated to South-East Hungary, where ~75% of total production and ~90% of gas production originates. The ongoing field development extensions are focusing on 3 areas mainly: Somogy/Babócsa, Gomba and Mezősas, to realize the reserve potential in these regions.
MOL Hungary’s net exploration acreage covers more than 10,000 km2, focused around three areas: Dráva and Zala Basins in the Western part of the country, central Hungary Paleogene representing oil, and various fields in Eastern Hungary near the Romanian border, mainly focusing on gas production. MOL Hungary aims to obtain additional licences. In the latest, 7th Bid round, two new hydrocarbon exploration licences were awarded near Kisvárda and Nyírbátor, bringing the number of exploration licences to 17. The Shallow Gas Exploration Program delivered great results in 2019 with four consecutive gas discoveries. The program continues in 2020 with further drillings along with the Tótkomlós unconventional pilot project.
Managing natural production decline is the main challenge of the Hungarian operation. The key objective of the Production Optimization program is to arrest natural decline, put undeveloped reserves into production and realize the remaining exploration potential via accelerated exploration and development activity. Since the start in 2016 the annualized production uplift increased with each year, thus successfully decreasing the impact of the natural production decline. Continuing on the great results of 2018, a production uplift of 1.5 mboepd was reached in 2019.
PRIORITIES FOR UPCOMING YEARS
Minimise production decline by production optimisation and exploration as well as maintain the competitive cost efficiency.
For details of other E&P operations, please click on the highlighted countries below: