Hungarian oil and gas company MOL said that it will invest almost 100 million euros in hydrocarbon exploration activities in Hungary during 2023, after the company found significant oil deposits near Budapest earlier this month.
Over the next five years, MOL plans to invest almost 500 million euros in the development of Hungarian crude oil and natural gas production, with 60-65 % of this amount intended for natural gas investments, 20-25 % for crude oil and the rest for the maintenance and replacement of the existing infrastructure.
The oil was found at the depth of 2,100 meters near Vecses during exploratory drillings which started in July this year. Production at the new well is starting at 600 barrels per day, but is expected to rise to 700-1,000 later. The discovery could boost MOL’s domestic hydrocarbon production by some 10 % and total crude oil production in Hungary by 5 %.
The well, MOL’s third-biggest in Hungary, should be capable of offsetting the decline in production at the company’s field in Algyo (157 kilometers southeast of Budapest). The production at the well started on 11 November and is being shipped directly to MOL’s Danube refinery.
MOL produced 3.5 million barrels of crude oil in Hungary last year, about half of the total production in the country. It also produced 1.4 billion cubic meters of gas, around 90 % of total domestic production.