Production in Western Siberia - the ZMB field

Russia is the prime source of new reserves. MOL Group has production rights in Western Siberia, one of the most prolific petroleum producing areas in the world. The Zapadno Malobalik (ZMB) oilfield is operated by a Russneft/MOL jointly-owned venture. ZMB has become a favorable addition to MOL Group’s production portfolio. A new element in our portfolio is the Surgutsky-7 Block, located to the southwest of ZMB, and covering an up-to-now unexplored region.

In Western Siberia, the Zapadno-Malobalik (ZMB) area in which MOL has a half-share lies with Russneft beside the river Balik, near the river Ob. Oil has been extracted in the region since 1961, and the Zapadno-Malobalik field was started up in 2002. From resources of 23.6 million tons, each well brings 50 tons of oil a day to the surface, a very healthy figure. When full-scale production is achieved, the total rate of extraction will be 2.5 million tons, and over two hundred wells will have been drilled.

Current data put MOL’s proven oil reserves of the Western Siberian ZMB field at 6.46 million tonnes.

The field development phase will finish at the end of the year. Explored oil reserves are anticipated to increase further, and could bear out earlier estimates of MOL’s part in the joint venture as up to 10 million tonnes for. By the end of 2004, daily production was already at 55,000 barrels of oil per day (bopd), half of it MOL’s.

Since the start-up of field development in 2003, 117 new production wells have been drilled. The number of production and injection wells in a field containing 279.7 mmboe estimated recoverable resources, totals 178 to date.