Azerbaijan: MOL signs commercial agreements for development of gas reserves

MOL and its joint venture partners have signed commercial agreements for the development of gas reserves in Azerbaijan, the oil and gas company said late Friday.

MOL is the third-largest shareholder in the Azeri-Chirag-Deepwater Gunashli (ACG) field, after the State Oil Company of the Republic of Azerbaijan (SOCAR) and BP, which operates the JV.

MOL said non-associated gas reservoirs were identified beneath and above the oil-producing reservoirs of the ACG field.

The commercial agreements amend the existing ACG production sharing agreement framework, enabling the parties to advance the exploration, appraisal, development of and production from the gas reservoirs of the ACG field, MOL said. ACG non-associated gas resources are believed to be significant, with up to 4 trillion cubic feet (around 112 billion cubic metres) in place, it added.

Drilling of the initial producing well has already started, with the first gas expected in 2025.

Additionally, MOL Group chairman-CEO Zsolt Hernadi and SOCAR CEO Rovshan Najaf signed a memorandum of understanding in Baku to evaluate potential exploration opportunities in the Shamakhi-Gobustan region.

MOL Group holds a 9.57pc stake in ACG and a 8.9pc stake in the Baku-Tbilisi-Ceyhan pipeline.

Source – Government of Hungary

Hungarian oil and gas company MOL has announced that it concluded agreements to secure the continuous transport of crude through the Druzhba pipeline through Belarus and Ukraine to Hungary and Slovakia.

Under the agreements with crude suppliers and pipeline operators, MOL Group will take over ownership of the affected volumes of crude at the Belarus-Ukraine border, effective September 9.

MOL said the updated transportation agreements and the new takeover arrangements fully comply with all relevant sanctions and provisions, including those of the European Union and Ukraine.

Gabriel Szabó, MOL Group’s downstream VP, said the new arrangement provided a “sustainable solution” for crude transport through the Druzhba pipeline and would contribute to the security of supply in Hungary and Slovakia.

Source – Government of Hungary