CENTRAL EASTERN EUROPE

Hungary

2P Reserves (2017 YE): 91.7 MMboe

Production (2017): 42.8 mboepd

Hungary remains one of MOL’s core countries in terms of production and reserves. The extensive geological knowledge of the country and a well-developed existing surface infrastructure supports efficient operation. The key objective of the work program is to mitigate natural decline through the ongoing Production Optimization Program, putting undeveloped reserves into production and realizing the remaining exploration potential via accelerated exploration and development activity.

DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017/2018)

Year

Type

Work program elements

2017

Exploration

Exploration program continued, three exploration wells were drilled and tested. Kunágota-5 and Tóalmás North-2 wells were dry, the extended well test (EWT) is ongoing on Mezősas-SouthWest-2 well. Tóalmás-North-1 EWT was completed, and proved to be a commercial discovery.

3D seismic acquisition (300 km2) was completed on Okány-West and Szeghalom; data processing is in progress.

In order to further increase exploration potential, MOL applied for three new hydrocarbon exploration licences in the 5th bid round, and successfully acquired all of them, in the areas of Őrség, Somogybükkösd, Somogyvámos. The licences are located in MOL’s core area in western Hungary. The committed work program includes drilling of two wells and 470 km² new 3D seismic acquisition.

Development

Tie-in of Komádi-West-4 well and drilling of one well in Mezősas-West field started, and will be completed in 2018.

Implementation of Biharkeresztes, Somogy (Vízvár) and KAF -TVK gas projects has started with well interventions, tests and surface facility preparation.

Production
Optimization

MOL successfully continued its Production Optimization Program, with an annualized production uplift of 2.1 mboepd. In the frame of PO project 15 fracks, 49 well workovers (including ALS optimization and acid jobs) were completed.

Efficiency

In the frame of the well cost optimization project ~20% cost reduction was delivered through the improvement in well design and activity rationalization.

Installation of the Algyő Power Plant was completed, which will bring substantial cost savings from 2018. The power plant utilizes MOL's own gas production for power generation.

2018

Exploration

Exploration activity will accelerate with six new wells to be drilled and tested within Okány-East, Bucsa, Nagykörös, Szeged-West and Bázakerettye. Well test on Okány East, Sas-SouthWest-2 will be completed.

3D Seismic acquisition at Nagybakónak-Sávoly will be carried out.

Development

2018 will see accelerated activity with six development wells to be drilled in the Szeged-Móraváros, Gomba and Mezősas-West fields.

Somogy fields (Vízvár) and KAF-TVK inert gas projects will be completed.

Production
Optimization

Production Optimization program will be carried on in 2018 with 30 workovers and 7 fracks, bringing additional incremental volumes.

Efficiency

Algyő Power Plant will be in full operation bringing its full potential of energy optimization, while well cost optimization will have a continuous effect on cost reduction.

 

Hungary map

Croatia

2P Reserves (2017 YE): 145.3 MMboe

Production (2017): 35.2 mboepd

Croatia is one of the core countries of MOL Group Exploration and Production. The country is facing challenges similar to Hungary: the natural depletion of mature fields. In order to exploit the remaining hydrocarbon potential, several programs have been applied, including Full Field Optimization (FFO) and EOR projects. In 2017 an exploration program started in the Drava 02 area, which will be extended in the coming years.

DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017/2018)

Year

Type

Work program elements

2017

Exploration

Exploration program started in the Drava-02 exploration block with some delay due to permitting issues. Severovci-1 drilling started at the end of 2017 and it is expected to be completed in early 2018. Preparation for Mala Jasenovača-1 well drilling has started, drilling is planned for 2018.

Development

Kozarice-42 and Letičani-9 development wells were drilled; testing and interpretation are in progress on both wells.

3D development seismic survey on the fields of Bokšić–Klokočevci (154 km2) and Letičani–Šandrovac–Bilogora (200 km2) was completed, interpretation is in progress.

Production
Optimization

The Production Optimization (PO) continued in 2017, as 45 well workovers and 20 well stimulations were performed as part of Full Field Optimization (FFO), WWO and Well Stimulation campaigns which together resulted in a total of 1.1 mboepd additional production on an annualized basis. Within the EOR project, CO2 and water injection continued throughout the year on the Ivanić and Žutica North fields. Linear Rod Pumps, a new artificial lift method, were implemented on 12 onshore oil wells.

2018

Exploration

The exploration program will be extended in 2018, four exploration wells will be drilled, Severovci-1, Legrad-1JR, Mala Jasenovača-1 and Selnica-1IS, and seismic survey will be performed within the Drava-02 exploration area.

Production
Optimization

The PO program will continue in 2018, the FFO concept will be implemented on additional onshore fields with 90 well workovers and the EOR project will be maintained on the Ivanić and Žutica North oil fields. Well workover campaign will continue on both active and idle production wells.

Efficiency

Several efficiency projects will continue in 2018, including system optimization, leakage prevention and reduction of flaring and energy consumption.

 

Croatia map