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Hungarian firm Mol has massively scaled back its KRG plans, due largely to geology but also to the uncertainty that it will be paid for crude production.
Less than a year ago it hoped output from its Akri-Bijeel block would hit 35,000 b/d by end-2015 and 50,000 b/d by 2017-18. Now it says output will be stuck at little more than 2,000 b/d.
Akri-Bijeel’s “economically recoverable reserves” have been slashed to just 4mn barrels, a mere 0.5% of the 800mn barrels oil-in-place estimate contained in Mol’s development plan agreed last August (MEES, 10 October). Disappointing drilling since has led gross reserve estimates to be downgraded to 117mn barrels: 73mn in the Bijell (sic) formation and a further 44mn in the Bakrman area, where “high hydrogen sulphide content…makes development uneconomic.” (CONTINUED - 567 WORDS)