MOL Divests a 49% Share of BaiTex LLC to Turkish Petroleum Corporation

Source: www.gulfoilandgas.com 2/20/2014, Location: Asia

MOL Hungarian Oil and Gas Public Limited Company (MOL) hereby informs the capital market participants that in line with the company’s portfolio optimization, MOL is close to finalizing the deal of selling 49% share of BaiTex LLC (BaiTex) to the Turkish Petroleum Corporation (TPAO). BaiTex is the holder of the hydrocarbon licenses for Baituganskoye field and Yerilkinsky block in the Volga-Ural region, Russia.

The final completion of the deal is expected to occur within the next month. The divestiture is in line with MOL’s long term portfolio management and risk sharing strategies as the Company looked for a strong partner in BaiTex.

MOL acquired its interests in Baitex at the end of 2006 and after initiated field development program the Company almost doubled the booked 2P reserves of the block at the end of 2011. As a result of the transaction, MOL Group’s SPE 1P and 2P reserves expected to decrease by 37 MMboe and 54 MMboe, respectively. Average production of the Baitugan field was 6.6 mboepd in 2013. As 51% owner of the Baitex company, MOL will remain as the operating shareholder. After the closing Baitex will be consolidated proportionally, in line with MOL’s accounting policies.

Besides TPAO’s investment in BaiTex, TPAO and MOL are in active discussions to identify other potential upstream co-operation opportunities and lay the foundations for a future strategic partnership, which could utilize TPAO’s and MOL Group’s well-established presence in the international oil industry.

MOL remains very committed to continue its operations in Russia and has the financial flexibility to re-invest in promising new upstream assets to provide future growth.

Alexander Dodds, Group Executive Vice President for Upstream commented:
“This step is fully in line with our portfolio modernization strategy and we really welcome TPAO not just as co-owner of the Baitugan project but as a strong partner as well. This partnership is well beyond this transaction as both companies have a definite intention to establish a long lasting strong and active partnership. We are planning to jointly pursue E & P opportunities not only to share the risks, but for active knowledge-transfer as well. This could be valid for other countries as well as Russia, which is still considered a core country for MOL.”


India >>  8/9/2022 - Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc (Shell), has completed its 100% acquisition of Solenergi Power Private Limited ...
United Kingdom >>  8/8/2022 - Baker Hughes (BKR) announced it has agreed to acquire the Power Generation division of BRUSH Group (“BRUSH”) from One Equity Partners. BRUSH is an est...

United Kingdom >>  8/8/2022 - As part of its long-term energy transition strategy, Archer Limited ("Archer") has signed an agreement to acquire 50% of the shares in renewable energ...
Norway >>  8/5/2022 - Sval Energi is pleased to announce that the company has signed an agreement with Suncor Energy to acquire Suncor Energy Norge AS. ...

United States >>  8/5/2022 - United Energy Corporation announced 100% acquisition of Integrity Terminals, LLC., adding to UNRG’s previous minority ownership stake of 12%. Accordin...
Denmark >>  8/4/2022 - Alfa Laval has signed an agreement to acquire BunkerMetric, a Scandinavian software company that develops advanced decision support tools for the mari...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.