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Hungary MOL plans USD 260 m gas investments in Pakistan
Wednesday, December 5, 2007 10:18:00 AM
Hungarian oil and gas group MOL plans to invest USD 260 million in developing natural gas fields in Pakistan close to Islamabad, according to János Fehér, CEO of the MOL subsidiary in Pakistan.
Fehér told news agency Dow Jones that MOL wants to boost capacity from the present 2.24 million cubic metres per day to 7 million in the Tal block in the Manzala field by January 2009.
Over the past eight years MOL has invested a total of USD 286 m in Pakistan.
Total gas reserves in the Tal block are estimated at least 2.5 thousand billion square feet, but after further exploration this amount could even double. MOL has interest in two other Pakistani oil fields.
Pakistan is one of MOL's most promising foreign exploration projects, with round 70-100bcm reserves. The fair value of this reserve base would be USD 1.2-1.5 bn , according to our draft calculation," Péter Tordai of KBC Securities has commented on Wednesday.
He noted that natural gas reserve valuation typically ranges between USD 3-4 / MMboe thousand cubic meter.
Tordai expects slight positive market reaction to the news, however, he said he wanted to hear more from the company about the profitability of its natural gas business in Pakistan.
Wednesday, December 5, 2007 10:18:00 AM
Hungarian oil and gas group MOL plans to invest USD 260 million in developing natural gas fields in Pakistan close to Islamabad, according to János Fehér, CEO of the MOL subsidiary in Pakistan.
Fehér told news agency Dow Jones that MOL wants to boost capacity from the present 2.24 million cubic metres per day to 7 million in the Tal block in the Manzala field by January 2009.
Over the past eight years MOL has invested a total of USD 286 m in Pakistan.
Total gas reserves in the Tal block are estimated at least 2.5 thousand billion square feet, but after further exploration this amount could even double. MOL has interest in two other Pakistani oil fields.
Pakistan is one of MOL's most promising foreign exploration projects, with round 70-100bcm reserves. The fair value of this reserve base would be USD 1.2-1.5 bn , according to our draft calculation," Péter Tordai of KBC Securities has commented on Wednesday.
He noted that natural gas reserve valuation typically ranges between USD 3-4 / MMboe thousand cubic meter.
Tordai expects slight positive market reaction to the news, however, he said he wanted to hear more from the company about the profitability of its natural gas business in Pakistan.
