MOL Group entered the U.K. in 2014 by acquiring a portfolio of nonoperated producing and development assets, the company website said. (Source: MOL Group)
Hungarian energy company MOL agreed on March 23 to sell its entire upstream portfolio in the U.K. to Waldorf Production Ltd. for $305 million in cash.
The divested offshore assets include MOL’s 20% stake in the Catcher Field, a 50% stake in Scolty & Crathes and a 21.8% stake in Scott as well as stakes in a number of other licenses. MOL’s corresponding proved and probable reserves amounted to 14.9 million boe at year-end 2021.
“MOL’s U.K. working interest production peaked above 18,000 boe/d in 2019 and has been falling in the last two years, accordingly Q4 2021 production was marginally above 12,000 boe/d,” a MOL company release on March 23 said.
MOL Group entered the U.K. in 2014 by acquiring a portfolio of nonoperated producing and development assets and has since been a significant production contributor to MOL’s international portfolio, according to the company website.
Divested MOL U.K. Upstream Assets |
|
Asset |
MOL Working Interest |
| Greater Catcher Area | 20% |
| Scott | 21.83% |
| Telford | 1.59% |
| Rochelle | 20.71% |
| Scolty & Cratches | 50% |
| Broom | 29% |
Cladhan |
33.5% (currently MOL is an inactive partner) |
| Brent Pipeline System | 1.77% |
| Sullom Voe Terminal | 0.72% |
Waldorf’s offer on a base cash consideration of $305 million to acquire MOL’s upstream U.K. portfolio is subject to customary purchase price adjustments and is based on an economic effective date of Jan. 1. In addition, the agreement contains an earn-out scheme mainly dependent on oil prices during 2022-25.
The closing of the transaction is subject to obtaining necessary approvals and is expected to take place in second-half 2022. As a result of the transaction, Waldorf will retain all future field abandonment liabilities such that on completion MOL will derecognize provisions of around $350 million.
MOL said it expects its average lifting cost will improve following completion of the transaction, as the production costs of the U.K. assets exceed the average lifting costs of the rest of MOL’s E&P portfolio.
Headquartered in Budapest, Hungary, MOL Group is a leading integrated Central Eastern European oil and gas corporation. The company’s E&P activities are supported by 80 years’ experience in the hydrocarbon field and include assets in 13 countries in the world's key oil and gas regions with production activity in eight countries, according to its website.
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