BUDAPEST--Hungarian oil and gas company MOL Nyrt. (MOL.BU) said
Friday it bought U.K. offshore assets from Wintershall Norge AG for
$375 million, fully financed from its operating cash flow, to
mitigate falling output.
MOL bought various stakes in 14 licences in Wintershall's U.K.
North Sea basin offshore assets. MOL bought non-operated equity
stakes in Broom, with a 29% working interest, Catcher, with a 20%,
Cladhan, with a 33.5%, and the Scolty and Crathes fields, the
latter with a 50% working interest. Wintershall's equity share in
infrastructure on the Sullom Voe Terminal and Brent Pipeline System
are also part of the deal.
"The deal is of strategic value as MOL intends to enhance its
offshore experience and achieve further growth in the region while
immediate reserve addition and sizeable mid-term production growth
are also realized," MOL said in a news release.
MOL estimated the acquisition will increase its proven and
probable reserves by 28 million barrels of oil equivalent and its
best estimate of contingent resources by 9 million barrels of oil
equivalent. Nearly all of the reserves is of good quality crude
oil, MOL added.
The new MOL assets are mainly in the development and production
phase, thus the current trend of decreasing daily production in
MOL's overall portfolio will be mitigated, the company said. Oil
production from the Broom area will contribute roughly 1,000
barrels of oil equivalent a day to MOL in 2014 while the acquired
portfolio could contribute 6,000 barrels a day in 2015. The
combined peak production of the assets is expected to reach 16,000
to 18,000 barrels a day in 2018 and have peak production through
2019, MOL added.
The deal, which will provide MOL with access to participate in
upcoming exploration bids in the U.K., is expected to close in the
first quarter of next year.
Write to Margit Feher at margit.feher@wsj.com
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