DOCUMENTS FOR THE ANNUAL GENERAL MEETING

MOL Plc. Annual General Meeting 2013 Documents
consequence of development activities in the Severo-Ledovoye
and Kvartovoye fields. The drilling program continued in the
Severo-Ledovoye field and 16 wells were completed in 2012. A
drilling program started in the Kvartovoye field in April 2012; 9
producing wells were drilled by the end of 2012 in total. Among
other field development activities, the construction of an oil
transmission pipeline 40km long was finished in the Severo-
Ledovoye field,
iii.) Production reached 5.5 mboepd in the Baitugan field, an
increase of 14% compared to 2011. In 2012, 34 oil producing
wells were drilled in total and 2 producing wells were converted
to water injection wells. Installation of water injection centres at
the Central Processing Facility was completed in 2012.
In Syria the Company encountered significant obstacles in the
collection of receivables from its Syrian partner for its share of
hydrocarbon production in Q4 2011; there was no significant
payment after October 2011. On 26 th February, 2012, INA
delivered the ’force majeure’ notice to the General Petroleum
Company of Syria in relation to the Production Sharing
Agreement for the Hayan Block signed in 1998 and the
Production Sharing Agreement for the Aphamia Block signed in
2004. Thus after 26 th February, 2012, no further production was
accounted for. Neither INA nor MOL Group expects to receive
any revenues or to realise their production share in Syria until
the termination of the ‘force majeure’. INA still maintains its
economic interest and the ‘force majeure‘ does not mean that
the project is terminated.
In Q4 2012, in Pakistan’s Tal Block, we started drilling a new
development well (Manzalai-10) and the tie-in of Manzalai-9 to a
Central Processing Facility was finished. Augmentation of the
Makori Early Production Facility was finished in December and
the Makori East-2 well also started to produce gas and
condensate in the same month. Makori Gas Processing Facility
construction started in 2012 and hand-over is expected to take
place by the end of 2013. In the Karak Block, test production
from the Halini-1 well has been ongoing since January. The plan
is to increase the production rate through new facilities from
March 2013.
Expenditures
Upstream expenditures, excluding special items, increased by HUF
22bn to HUF 501bn compared with 2011. Royalties paid on
Upstream production, including export duties connected to Russian
sales, amounted to HUF 163bn, a decrease of 3% due to lower
production and the impact of lower regulated gas prices. This was
partly offset by unfavourable changes in the USD/HUF exchange rate.
In addition, expenditures grew further due to higher energy,
material, purchased product and exploration costs. Unit OPEX,
excluding DD&A, amounted to USD 7.3/boe in 2012.
12/94