DOCUMENTS FOR THE ANNUAL GENERAL MEETING
DOCUMENTS FOR THE ANNUAL GENERAL MEETING
DOCUMENTS FOR THE ANNUAL GENERAL MEETING
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MOL Plc. Annual General Meeting 2013 Documents<br />
In the Karak block, seismic acquisition over the Halini discovery and<br />
its vicinity is targeted for upside exploration potential. As a result of<br />
our efforts in Pakistan, reserve booking is anticipated in 2013.<br />
CEE: maximising the recovery<br />
rate<br />
Sizeable production growth is<br />
expected in mid-term<br />
In the CEE region, as in previous years, we will maximise recovery<br />
rates and mitigate decline rates. In Croatia, we are pursuing the<br />
implementation of EOR projects and drilling several development<br />
wells in existing oil & gas fields, while continuing with our on-shore<br />
drilling campaign. Off-shore, 2 wells will be drilled for the first time<br />
in several years. In Hungary, the drilling of 8 new conventional<br />
exploratory wells, completion of several new field developments<br />
including efficiency improvement projects and the start-up of low<br />
caloric gas fields will be progressed. Romanian E&P Division<br />
exploration activities will start with 3D seismic measurements.<br />
The accomplishments of 2013 described above will contribute to the<br />
Group’s strategic aim of reaching 170–180 mboepd production from<br />
the current level of 110 mboepd by 2017–2020 with stable unit<br />
profitability. At the same time the long-term reserve replacement<br />
rate is targeted to reach an average of 100% in the next three years,<br />
similar to past achievements.<br />
DOWNSTREAM OVERVIEW<br />
Highlights<br />
Despite the still challenging external environment...<br />
<br />
<br />
<br />
MOL Group more than doubled its CCS Refining & Marketing<br />
EBITDA<br />
Our two largest refineries performed relatively well, which<br />
highlights the strength of our complex assets<br />
With the clear aim of remaining in Europe’s top quartile in<br />
operational efficiency and profitability we launched our New<br />
Downstream Program targeting USD 500-550mn in efficiency<br />
improvements by 2014<br />
…delivery is on track: USD 150mn was already saved in 2012<br />
<br />
MOL will optimise its assets at MOL Group Level through<br />
selective organic growth projects and reshaping of less efficient<br />
assets<br />
Overview of 2012<br />
The European oil industry<br />
environment remained<br />
challenging...<br />
... despite some temporary<br />
positive signs in 2012<br />
In 2012, the downstream macroeconomic environment was driven by<br />
high crude prices, lower light-heavy differential, variable refinery<br />
margins, depressed petrochemicals spreads, low demand levels and<br />
increasing energy and operational costs.<br />
Refinery margins were temporarily increased by one-off factors such<br />
as low inventories and tight oil product markets in mid-2012. In the<br />
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