Annual Report 2015

ECONOMIC, SOCIAL AND
ENVIROMENTAL PERFORMANCE

Annual
Report 2015

ECONOMIC, SOCIAL AND
ENVIROMENTAL PERFORMANCE

Continuing the efforts launched in 2015, MOL Group Upstream business is targeting to become a self-funding business in a USD 35/bbl Brent price environment. To achieve this MOL Group will pursue under the umbrella of the New Upstream Program a series of measures:

  • Increase production further to 105-110 mboepd: This is planned to be delivered through the CEE Production Optimization measures (on a portfolio level break-evening at or below USD 20/bbl Brent price). Further production growth is expected from field development efforts in the international portfolio (mainly UK, Russia, and Pakistan)
  • Implement a thorough efficiency program: Target OPEX spend reduction by USD 80-100 mn as compared to 2015 levels. This will result in a direct production cost at around USD 6-7/bbl
  • Reduce organic CAPEX to USD ~500-600mn (reduction of ~15-30% year-on-year), including a ~50% cut in Exploration CAPEX, with exploration efforts continue to focus on Norway, nearfield CEE and Pakistan
  • Limit Development CAPEX spending in CEE only on projects that are break-evening at or below USD 30/bbl Brent price