BAKU, Azerbaijan, April 8
By Leman Zeynalova – Trend:
Hungarian MOL Group can temporarily curtail production in some of its international assets, Trend reports citing the company.
“In Upstream, production was around 110 mboepd in Q1, in line with earlier guidance. Lower demand for fuels, full storage capacities and reduced refinery runs may however lead to temporary production curtailment in some of our international assets, potentially offset by more entitlement barrels due to the low oil price,” said MOL Group.
In light of the uncertain macroeconomic environment, the company is changing production guidance to 115-120 mboepd from 120 mboepd (assuming a 6-month contribution from ACG). “We have put in place a set of actions to adjust expenditures and reduce our portfolio breakeven towards USD 25/boe.”
As for Downstream, lockdowns in core countries of operations have resulted in a significant drop in demand of 20-40 percent for key product groups, said MOL Group.
“While this has created operational challenges and a need for continuous optimization across our high-quality downstream assets, we are also making use of currently attractive margins by keeping all refineries running, even if at reduced rates. MOL will continue to provide a safe and steady supply of oil and chemical products in all core countries.”
After a strong operational and financial performance in Q1, MOL Group has experienced declining sales as borders have been closed and social activities restricted. As a result, MOL Group has refocused operations to provide reliable and safe supply across our network and remain cash flow positive.
MOL Group is an integrated, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 40 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 8 countries and exploration assets in 13 countries. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of about 1900 service stations across 10 countries in Central & South Eastern Europe.
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