MOL has signed Production Sharing Contract with the Kurdistan Regional Government on Akri-Bijeel exploration block

MOL Hungarian Oil and Gas Plc announces that it has signed a Production Sharing Contract with the Kurdistan Regional Government of Iraq (KRG) on an exploration block in the Kurdistan Region. The Akri Bijeel Block - with area extent of 889 sqkm - is situated about 50 km north of Erbil, the Region's capital.

MOL has a 100% paying interest and an 80% participating share with a 20% Regional Government carried share in the block.

The planned work programme includes 200 km of high quality 2D seismic acquisition and the opportunity of drilling an optional exploration well. In case of successful exploration activity good quality oil production is expected.

Iraq is one of the most prolific hydrocarbon regions of the world and MOL has been screening opportunities since the mid '90s. The Kurdistan Region of Iraq has well established and properly functioning government institutions, including its own army that guarantees law, order and security, and its own Parliament and Government (Kurdistan Regional Government, KRG) in full conformity with the Iraqi Constitution. The Kurdistan Oil and Gas Law (passed unanimously by the Kurdistan Parliament on 6 August 2007) and model PSC facilitate international oil companies to conduct transparent negotiations with the KRG under a clear legal framework.

Zoltán Áldott, Executive Vice-President of the Exploration and Production Division commented: "The Middle East is one of the main focus areas of MOL's international upstream activity. The geological features of the Kurdistan Region are under-explored, for previous political reasons. The Kurdistan Region therefore provides a unique opportunity for MOL to further increase its Middle East portfolio with an attractive exploration portfolio element. MOL is proud that in spite of the harsh competition it was able to secure its position in the region."