Gas, Oil Production Remains Mol's Main Activity in Algyő

Traditional oil and gas production will remain Mol's main profile in Algyő, SE Hungary, for a long time to come, but the company is exploring the possibility of installing renewable energy sources, László Kardos, head of the company's Algyő production region, told reporters on site.

A ten-year forecast has been prepared. It is reviewed every year and it shows decreasing volumes, he said.

Oil was first discovered in Algyő in 1965 during drilling for a thermal spring. In the early 1980s, the region provided two-thirds of domestic gas consumption and half of the country’s oil production.

In Hungary's largest hydrocarbon field, covering 75 square kilometers, Mol currently produces 130 million cubic meters of gas, which accounts for 1.5% of Hungary's 9-10 billion cubic kilometers of consumption.

Oil production peaked in the early 1980s, at around 1.6-1.7 million tons – the total consumption was 2.5 million tons at that time. Currently, production is at one-tenth of the level of the peak period," László Kardos said.

Between 1978 and 1990, Mol brought a total of 50 million tons of oil and 101 billion cubic meters of gas to the surface in the Algyő region.

The infrastructure of the hydrocarbon field was built during a period of intensive investment in the 1970s, with more than 2,000 kilometers of pipelines and 1,000 wells, but only one in five is now operational.

3D seismic surveys, launched in recent years, are aimed at boosting production, which they hope will discover additional reserves and continue to increase production using new technologies.

Mol's director of production and exploration, Ádám Homonnay said that further drilling will be carried out in the Algyő field in 2024.

He added that they intend to continue with conventional operations as long as they can economically extract substantial volumes. The geology of the area, with its porous sandstone soil, is very favorable and has allowed high extraction levels over the long term, he stated.