Hungarian MOL makes hydrocarbon discovery in Pakistan

Hungarian oil and gas group MOL has announced that a joint venture with 30% MOL ownership has made a “significant oil discovery” in Pakistan.

The test well’s flow rate at the Halini-Deep-1 reached 5,500 barrels per day, among the country’s highest yields. The well was drilled to a depth of 5,900 meters.

MOL said the hydrocarbon discovery was in the Karak Block, its third in the block. The company has a track record of over 17 years in Pakistan and holds equity stakes in five blocks in the country. The current discovery is the 11th achieved in three different blocks. The Karak block is operated by Mari Petroleum Company Limited (MPCL) with a 60 percent working interest, while MOL Pakistan Oil & Gas has a 40 per cent stake.

In the Upper Indus area, MOL is also present in the Ghauri and Margala fields and is the operator of the TAL block, where it is responsible for about 80,000 boepd production on a 100 per cent basis.

In 2015 MOL bought a 30 per cent non-operated stake in the DG Khan Block, which marked its entry in the Middle Indus region. “In the past 17 years, the exploration teams led by MOL in Pakistan have successfully de-risked more than 400 MMBOE in 2P reserves,” Berislav Gašo, MOL Group’s E&P COO, said. “This well, which is operated by Mari Petroleum, adds to this success series and will also help to improve the energy security of the country,” Gašo said.

MOL’S New Upstream Program aims at making MOL Group’s portfolio self-funding even in a 35 USD/bbl oil price environment. “Our Pakistani operations are a crucial building block in these efforts and we believe that there is further upside ahead of us in Pakistan,” Gašo added.

MOL signed an agreement to buy a 30 per cent stake in the Ghauri block in Pakistan and a 25 per cent stake in Block 43B Oman in March 2015. To date, six discoveries have been made in the latter block, with commercial production commencing from five of the discoveries (Manzalai started in 2005, Makori in 2006, Mamikhel in 2010, Maramzai in 2011 and Makori East in 2012), while the Tolanj discovery is under appraisal. The total block production of TAL was 67 mboepd at the end of 2013 (of which 5.6 mboepd was MOL’s entitlement share), which was elevated to above 80 mboepd after the start-up of the new plant.

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