MOL Group Acquires Offshore Upstream Portfolio in the North Sea Area

MOL extends with a landmark transaction its upstream portfolio by entering the attractive North Sea region on last week. The offshore assets are acquired from the German BASF Group member Wintershall and are located in the UK North Sea basin. The deal is of strategic value as MOL intends to enhance its offshore experience and achieve further growth in this region, while immediate reserve addition and sizeable mid-term production growth are also realized.

In line with the company’s active portfolio development strategy, MOL has executed Share Purchase Agreements with Wintershall for acquiring Wintershall’s interests in selected UK North Sea basin offshore assets with 14 licences. The transaction provides MOL with an opportunity to acquire a foothold on the attractive North Sea area.

“This is a milestone in MOL’s history. The North Sea is the right region for us to make this strategic move. We are sending a clear message to our investors and our competitors that MOL Group is serious about expansion and is able to grow in new areas. The North Sea is a well-developed area and carries relatively low political risk compared with some of our other investments, which reduces MOL’s overall E&P “political risk” profile, and the United Kingdom provides a predictable and transparent regulatory environment.” – said MOL Chairman-CEO Zsolt Hernádi at the signing ceremony.

The deal consists of a well-balanced portfolio that allows MOL to maintain and increase its overall production level while simultaneously to balance the company’s overall geographical presence and the associated risks. Furthermore it also provides MOL with a core around which it can further group other exploration, development and production phase assets.
The extensive infrastructure in place will enable new discoveries to be developed rapidly via existing facilities and also help make smaller accumulations more attractive for development. In addition, MOL Group will have access to participate in upcoming future bid rounds in the United Kingdom, while parallel the transaction facilitates for entering into close cooperation with reputable offshore operators, possibly paving the way for further joint projects.