Hungary's MOL sells another asset in Russia
TOMSK. Nov 8 (Interfax) - Hungarian oil and gas company MOL has closed a deal to sell LLC Matyushkinskaya Vertikal, an asset based in Russia's Tomsk region, the Izvestia newspaper reported on Tuesday.
"MOL has completed the sale of 100% of Matyushkinskaya Vertikal to four Russian limited liability companies that have already put this asset under the trust management of Rus Oil," the paper said, citing sources close to the deal. Rus Oil confirmed this information, the paper said.
The price of the deal was not disclosed, but analysts estimate at about $30 million.
The development of Matyushkinskaya Vertikal has already been included in Rus Oil's development plan to 2019.
MOL told Interfax that it had one more asset left in Russia, namely the Baitugan field in the Orenburg region.
"MOL carries out operating activity in Russia in the framework of the program to develop the Baitugan block. In addition, Russia is one of MOL's main operating areas in the exploration and production segment," the company said.
MOL used to own two assets in the Khanty-Mansiysk Autonomous District: 100% of LLC MOL Zapadnaya Sibir (MOL Western Siberia), which owned a geological license to the Surgut-7 block; and 50% of LLC Zapadno-Malobalykskoye (LLC West Malobalyk) (ZMB), a joint venture with Russneft . Following the sale of ZMB, MOL told Interfax that it did not intend to sell the remaining assets. "MOL intends to continue its activity in Russia with the emphasis on developing the Baitugan field and Matyushkinsky block. Also, financial flexibility enables us to make fresh investments in viable new upstream assets," the company said.
The Matyushkinsky block contained proved and probable reserves of 6 million tonnes oil equivalent as of 2007 and pumps 550-600 barrels a day. It produced 55,756 tonnes of oil in January-September 2016.
MOL Group is an integrated, international oil and gas company, headquartered in Budapest. Its upstream portfolio includes oil and gas exploration assets in 13 countries, with production activity in eight countries. Beyond its core region, Central and Eastern Europe, MOL has a well-established presence in the CIS region, the Middle East, Africa and Pakistan. In 2014, MOL Group also entered the United Kingdom, and later Norway, to increase its reserves and enhance its offshore experience.