MOL announced it has acquired 100% stake in BaiTex LLC which has exploration rights in one of Russia’s main oil producing provinces – according to a stock exchange statement. The transaction price was not disclosed, but the field infrastructure was reported to be good, as the field has direct pipeline connection to the main Transneft pipeline system. BaiTex had 66.7m barrels of proven and probable reserves. MOL plans to spend USD 200-250m on future field development.
Our view: We see the news as slightly positive as we doubt the field was acquired below the targeted reserve replacement ratio of MOL.