MOL to buy out Russian partner in Western Siberia

By OGJ editors
HOUSTON, Oct. 12 -- MOL Hungarian Oil & Gas PLC plans to pay $15.5 million to buy out its Russian joint venture partner, North-West Oil Group (NWOG). The NWOG-MOL project company owns the exploration license for a Western Siberia block.

Closing remains subject to various conditions, including approval from the Russian government. The Surgut 7 block is in the central part of Western Siberia and covers 330 sq km. The exploration period is 4 years and could be followed by an 18-year production period, MOL said.

A $6 million exploration plan calls for 300 km of 2D seismic survey, and the drilling of one exploration well, expected next year.