MOL Hungarian Oil and Gas Plc. has signed a Farm-out Agreement with Mari Gas Company Limited (MGCL) on 2 July, 2008 to acquire 40% interest from its 100% owned and operated Karak onshore exploration block in North-West Pakistan. In parallel, MOL has assigned 25% participating in terest to MGCL in its 100% owned and operated Block 43B in Oman.

MGCL is one of the largest oil and gas exploration and production companies in Pakistan and is registered as a public limited company.

The Karak Block – with area extent of 2,335 sqkm – is situated in the southern vicinity of Tal block where MOL has been conducting outstanding successful exploration since 1999. The hydrocarbon system in the Karak region is similar to MOL’s Manzalai structure in Tal block that allows us to provide added value on the basis of our previous experience during the operation. The block has been operated by MGCL since April 2005 that holds the remaining 60% interest following the assignment.

MOL signed the Exploration and Production Sharing Agreement with the Sultanate of Oman in June 2006 for Block 43B. The block is locasated onshore in North-East Oman with an area extent of 15,232 sqkm.

Both blocks are in the first exploration phase with similar planned work programme, 2D seismic acquisition in 2008 and drilling of 1-1 well in 2009.

The transactions are subject to the approval of the Government of Pakistan and the Sultanate of Oman.

Zoltán Áldott, Executive Vice-President of the Exploration and Production Division commented: "One of the basic elements of MOL’s upstream strategy is the portfolio extension through solid partnerships with strong local and international companies. In line with this we agreed with Mari Gas Company Limited to arrange a swap on the basis of mutual interests. This partnership allows us to diversify our exploration portfolio and further extend of MOL’s presence in one of our main target countries, Pakistan. We believe that this is only the first step of long term cooperation with Mari Gas in the Pakistani and international oil and gas industry."

Tags: Mari Gas Company Limited