MOL Expands Russian Investment

MOL (Hungary) has agreed to buy out North-West Oil Group's (Russia) 50% stake in their joint venture (JV) to develop the 330 sq km Surgut-7 block in western Siberia. BMI considers the move to make strategic sense given the company's ongoing policy of investing in Russian acreage to boost its reserves ratio. Yet, while conditions are benign at present, the reliance on Russia raises some medium term concerns given our overall negative view of the business environment.

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