New Galgahévíz oil well boosts Hungary’s domestic production and supports MOL’s SHAPE TOMORROW strategy

New Galgahévíz oil well boosts Hungary’s domestic production and supports MOL’s SHAPE TOMORROW strategy

(IN BRIEF) MOL and O&GD have discovered a new oil deposit near Galgahévíz, Hungary, with the Galgahévíz-4 well producing around 1,000 barrels of oil per day. The project, drilled by Rotary Zrt., strengthens Hungary’s energy independence and reflects MOL’s commitment to domestic exploration. The announcement comes alongside the 60th anniversary of the Algyő field, a cornerstone of Hungary’s oil and gas sector, which is now also being developed into a renewable energy hub with solar and storage projects. Together, these developments highlight MOL’s dual focus on securing traditional energy supplies and advancing its SHAPE TOMORROW strategy for a sustainable energy future.

(PRESS RELEASE) BUDAPEST/GALGAHÉVIZ, 19-Seo-2025 — /EuropaWire/ — MOL and its partner O&GD have announced the discovery of a new oil field near Galgahévíz, Hungary, at a depth of around 2,400 meters. The Galgahévíz-4 well, drilled in the “Mogyoród” concession area, has already been put into production and is capable of delivering about 1,000 barrels of crude oil per day, which is transported to the Danube Refinery in Százhalombatta for processing. The milestone comes as MOL commemorates the 60th anniversary of the Algyő field, one of Hungary’s most important hydrocarbon sites.

Drilling operations began at the end of May and were completed in just 37 days by MOL’s subsidiary, Rotary Zrt., using the R-69 rig. After successful testing, the well was commissioned, with MOL and O&GD dividing the production on a 51% to 49% basis. “The new deposit contributes significantly to Hungary’s security of supply, as domestic production reduces import dependency,” noted Dr. György Bacsa, Chief Operating Officer of MOL Hungary. “In times of uncertainty surrounding energy routes, having diversified supply channels is important, but domestic resources remain the most secure, which is why exploration continues to be a top priority for MOL.”

This discovery follows a string of recent exploration successes in Hungary. MOL has struck oil and gas in multiple locations in recent years, including the Vecsés wells between 2022 and 2024, and a discovery near Somogysámson in March 2025. Since launching its “shallow gas” program in 2019, the company has also completed 25 successful drillings.

MOL remains the largest hydrocarbon producer in Hungary, operating nearly 1,300 oil and gas wells. In 2024 alone, the company was responsible for almost half of the country’s oil output (about 600,000 tonnes) and close to 80% of natural gas production (around 1.5 billion cubic meters). Hungary plays a central role in MOL Group’s wider portfolio, accounting for approximately 39% of its total oil and gas production. The Galgahévíz-4 well is expected to contribute around 4% to MOL’s Hungarian crude oil output.

The discovery coincides with the anniversary of the Algyő oil and gas field, which began production in 1965 and has since been the backbone of Hungary’s energy system. Nearly 1,000 wells have been drilled in the field over the decades, and although reserves are declining, Algyő still supplies about 10% of Hungary’s natural gas demand and 5% of its oil demand. At its peak in the 1980s, the field covered up to 70% of the nation’s energy needs.

Algyő’s future, however, lies in both hydrocarbons and renewables. MOL is gradually transforming the site into a hub for energy transition by integrating renewable energy production and storage. A 37.4 MWp solar park and a 40 MWh storage system are under development at the site, enabling self-sufficiency in electricity and reducing CO2 emissions by 13,000 tonnes per year. These investments form part of MOL Group’s long-term SHAPE TOMORROW strategy, which aims to balance fossil fuel operations with a growing portfolio of sustainable energy solutions.

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SOURCE: MOL Group