NIS and RAG sign an agreement for joint exploration in the South of Hungary

abarrelfullabarrelfull wrote on 21 Dec 2011 09:42
Tags: gazprom-neft hungary nis rag upstream

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NIS and Austrian Rohöl-Aufsuchungs Aktiengesellschaft , via its Hungarian subsidiary RAG Hungary Kft (RAG), have entered into agreements to jointly explore and develop hydrocarbons in the Kiskunhalas exploration license area west of the city of Szeged in southern Hungary. The license held by RAG Hungary comprises an area of 2255 km2.

The companies will invest jointly and share exploration risks and benefits from oil and gas production in the area. Under the terms of the agreement, NIS will have a 50 percent share in production volumes.

Following completion of a high quality 3D seismic study, the partners plan to drill the first wells in 2012. Exploration, appraisal and development costs in the license area will be shared in accordance with the parties participating interest in the project. RAG Hungary shall be the operator under the agreement.

By combining skills, knowledge and experience in neighbouring exploration areas in Hungary and Serbia, the partnership will be beneficial for both companies and stimulate investment in exploration activities in Hungary.

Kirill Kravchenko, CEO of NIS, commented:

“Partnership with RAG Hungary is another step in our strategy to actively develop NIS’s business abroad. We are focussed on exploration and production in the Pannonia basin area, and today there are several prospective projects in our portfolio in Hungary, Romania and Bosnia. Our strategic goal is not only to increase the volumes of hydrocarbon production but to grow our reserves and resource base. To achieve this we attract the best partners who are leaders in their industries. The partnership with RAG provides us with new experience, technologies and access to new regions ”.

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