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Hungarian oil company Mol has discovered a significant amount of oil at a depth of 2100 meters near Vecsés, next to Budapest. The company started exploratory drilling in the area in July, and after carrying out the necessary tests, it was confirmed that a previously unknown oil field was discovered, the oil company stated on Monday.
The new well was put into production on November 11, and will start with a production of 600 barrels per day. Its planned production of 700 to 1,000 barrels per day will increase Mol Hungary’s oil production by about 10 percent, and Hungary’s by five percent.
The Vecsés-2 oil well has become Mol’s third highest-yielding well in Hungary, and is the only one capable of replacing the entire annual natural yield decline of the ageing Algyő field in southern Hungary, according to the company’s statement.
Mol is the largest hydrocarbon producer in Hungary. Last year, the company provided almost half of the domestic production of crude oil (3.5 million barrels) and around 90 percent of natural gas (1.4 billion cubic meters). The Hungarian oil company plans to invest almost HUF 200 billion (EUR 490 million) in the development of oil and gas production in Hungary over the next five years.
Zsolt Hernádi, CEO of the Mol Group, said in the statement that
every drop of oil produced in Hungary contributes to reducing the country’s energy dependence, which is why this exploration success is a pleasure.
The reserves currently in production are being depleted, which is part of a natural process. A huge effort is being made to keep production at the current level.
Tamás Pletser, energy market expert at Erste, told Portfolio, a Hungarian news site, that Hungarian oil fields can be turned into production relatively quickly, within one to two years of discovery. The reason is that there is oil infrastructure in the form of pipelines throughout the country, so no major investments are needed. According to the expert,
Hungarian oil production and new discoveries therefore have a particularly high return on investment.
Meanwhile, Mol has been in the spotlight several times in recent days. Last Friday, the company announced that it would again restrict refueling at all domestic filling stations, with a limit of 100 liters per fill-up. They also announced that they would not be able to supply diesel and motor gasoline to many of their partners this week, in order to keep the country running and energy supply secure.
As a result, Mol will not be supplying fuel to some 194 small wells this week, partly due to maintenance work at the Danube Refinery. According to the Association of Independent Petrol Stations, a national fuel shortage is coming.
Featured photos via Mol