A recent joint venture between Hungarian oil and gas giant MOL and O&GD has led to the successful discovery of a new oilfield situated close to Galgahévíz, a village near Hungary's capital, Budapest. This development is anticipated to significantly bolster the nation's energy supply, reducing its dependence on foreign oil. The newly operational Galgahévíz-4 well is expected to contribute approximately 1,000 barrels of oil per day, marking a notable increase in MOL's domestic production capabilities. This strategic find underscores the country's commitment to prioritizing local hydrocarbon exploration to ensure a more stable and secure energy future.
The Galgahévíz-4 well, drilled to a depth of 2,400 meters, represents a substantial addition to Hungary's oil reserves. The crude oil extracted from this site will be transported to MOL's Danube Refinery in Százhalombatta for processing. The ownership and revenue sharing agreement for this new discovery stipulate that MOL will hold a 49% stake, while O&GD will retain 51%. This partnership highlights a collaborative effort to maximize the benefits of the find for both entities and for the national energy landscape.
György Bacsa, the managing director of MOL Hungary, emphasized the profound impact of this discovery on Hungary's energy security. He stated that increasing domestic production is vital for mitigating import dependency and navigating the uncertainties associated with international supply routes. Bacsa underscored that locally sourced energy is always the most reliable option, hence MOL's strong focus on hydrocarbon exploration within Hungary.
Drilling operations at the Galgahévíz-4 site, located within the Mogyoród concession area, commenced in late May and were completed efficiently in just 37 days. Following a series of successful tests, the well was promptly brought into production. This rapid turnaround was made possible by MOL's subsidiary, Rotary, which deployed its R-69 rig for the operation, demonstrating advanced drilling capabilities and operational effectiveness.
MOL stands as Hungary's leading producer of hydrocarbons, managing nearly 1,300 oil and gas wells across the country. Hungary accounts for a substantial 39% of MOL's total production portfolio. Last year, MOL was responsible for 47% of Hungary's crude oil output and nearly 80% of its natural gas production, solidifying its role as a critical player in the nation's energy sector. Furthermore, earlier this year, MOL and Turkish Petroleum entered into concession agreements with Hungary's Ministry of Energy, paving the way for joint exploration efforts in the Tamási and Buzsák regions, signaling continued growth and collaboration in the energy domain.
This latest oilfield discovery near Budapest not only strengthens MOL's position as a dominant energy provider in Hungary but also significantly contributes to the nation's broader goal of achieving greater energy independence. By tapping into domestic resources, Hungary aims to insulate itself from global market fluctuations and geopolitical pressures, ensuring a steady and reliable energy supply for its citizens and industries.