Photo: Ferenc Bibó-Szurkos, Production coordinator, South Hungary Production MOL

EXPLORATION & PRODUCTION

UPDATE 2018

MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 Photo: Branislav Herchl

CONTENT

I. MOL GROUP UPSTREAM 2018  II. KEY ACHVIEVEMENTS IN 2017 AND THE 2018 OUTLOOK  III. SCHEDULE OF EXPLORATION AND APPRAISAL WELLS  IV. LICENCE INFORMATION  V. DETAILED WORK PROGRAMS IN 2017 / 2018  V/. HUNGARY  V/. CROATIA  V/. PAKISTAN  V/. UNITED KINGDOM  V/. RUSSIA  V/. NORWAY  V/. KURDISTAN  V/. KAZAKHSTAN  V/. OTHER COUNTRIES  VI. GLOSSARY 

MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 I.

MOL GROUP UPSTREAM 2018

2017 PRODUCTION (mboepd)¹ TOTAL: 107 2P RESERVE CHANGES IN 2017 (MMboe)4 CEE  MIDDLE EAST AND ASIA  CIS  NORTH SEA RESERVES  (31.12.2016) AFRICA 459 

PRODUCTION 2017 Y/E 2P RESERVES (MMboe)² TOTAL: 356 (38)

CEE  CIS  NEW NORTH SEA BOOKINGS  2 MIDDLE EAST AND ASIA  AFRICA  REVISIONS (69)

TOTAL 2017 CAPEX (USD mn)³ TOTAL: 346

CEE  PURCH./SALE OF MINERALS NORTH SEA IN PLACE  1 MIDDLE EAST AND ASIA  AFRICA  RESERVES CIS PRODUCTION (31.12.2017)  356 EXPLORATION

1 Including JVs and Associates (Baitex: 6.2 mboepd, Pearl: 2.4 mboepd) 2 Including JVs and Associates (Baitex: 47.2 MMboe, UGL: 23.5 MMboe) 3 Excluding JVs and Associates (Baitex: 23.8 USD mn, UGL: 1.5 USD mn, Pearl: 0.2 USD mn) 4 Including JVs and Associates (Baitex: 47.2 MMboe, UGL: 23.5 MMboe)

2 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 3 II.

KEY ACHIEVEMENTS IN 2017 AND THE 2018 OUTLOOK

In  MOL Upstream continued to pursue e‚cient Moving forward the Upstream business will remain 1 operations, by maintaining low unit direct a key pillar of the integrated business model of MOL 2017/2018 PRODUCTION (mboepd) production cost and disciplined CAPEX spending Group in line with the “ strate”.

throughout the year. Despite slightly lower TOTAL: TOTAL: TOTAL: TOTAL: production volumes compared to the previous year, • Self-funding and value generating operation 107 mboepd ~110 mboepd 107 mboepd ~110 mboepd Upstream doubled its simplified free cash-flow in is to be maintained in 2018 and onwards even in 2% 2% 9% 8% , exceeding USD ‘ mn. a 50 USD/bbl oil price environment. 6% 5% • In 2018 production level is targeted to stabilize 6% 12% • Production decreased by 5% in 2017 on portfolio at ~110 mboepd with steady contribution from CEE 6% 6% level driven by lower UK volumes a
ected by the wax onshore assets, and by capturing value from the 8% 8% 41% build-up in the Scolty and Crathes pipeline system international portfolio. The already producing 46% and lower volumes in the CEE mainly due to natural Catcher area will have a significant contribution depletion. to production from 2018. 33% 30% • Production Optimization Program (PO) continued • MOL Upstream will continuously pursue in the CEE region, and delivered 3.2 mboepd e§ciency to maintain unit direct production cost OTHER production increment on an annualized basis, which competitively low, in the single-digit territory KURDISTAN REGION OF IRAQ partly o
set the lower volumes from mature fields. (USD/boe) on a portfolio level. UK 50% 46% • The Floating Production, Storage and O’oading • Exploration CAPEX will be spent on near-field 40% 39% RUSSIA (FPSO) installation on the Catcher field was exploration activites in the CEE and in Pakistan, PAKISTAN CONDENSATE delivered and first oil was achieved in December 2017. while in 2018 the first operated o¨shore well will CROATIA OIL The production is expected to ramp up in 2018. be drilled in Norway. HUNGARY GAS • In 2017 several tie-ins were completed in the • Development CAPEX will be used to unlock 2017 2018 2017 2018 MOL-operated TAL Block in Pakistan, and as undeveloped 2P reserves in CEE, and continue a result gross production exceeded 85 mboepd. the Production Optimization Program. International • Unit direct production cost stayed at a very field development activity will mainly focus on competitive level of 6.1 USD/boe on portfolio level. completion of the Catcher project in the UK and • In the frame of the well cost optimization project the continuation of the Baitex re-development 2 ~20% cost reduction was delivered in Hungary program in Russia. 2017/2018 CAPEX (USD mn) through the improvement in well design and activity • The free cash-flows generated by the Upstream rationalization. business shall be su§cient to cover 100% reserve TOTAL: TOTAL: TOTAL: TOTAL: • Strong CAPEX discipline remained in place in replacement even in an oil price environment of usd 346 mn ~usd 450 mn usd 346 mn ~usd 450 mn 2017; total organic CAPEX spending declined to 50 USD /bbl. 2% 4% USD ~350 mn from USD ~420 mn. • For e¯cient organic reserve replacement MOL 12% 15% 4% 4% • The exploration portfolio was extended through Upstream intends to achieve competitive finding 5% successful licensing rounds in Hungary and in and development unit costs (12-16 USD/boe). 15% 19% Norway. MOL Hungary acquired three new 27% 29% hydrocarbon exploration licences in the 5th bid round in the areas of O´´ rség, Somogybükkösd, SUSTAINABLE OPERATIONS 22% Somogyvámos. MOL Norge has been also o
ered three new licences with reputable partners in the 28% 2017 APA licencing round, including two operated MOL Group is committed to the key principles of 28% blocks. sustainable operations, aiming at zero HSE incidents OTHER 69% • 2P oil and gas reserves stood at 356 MMboe at the and accidents, protecting the environment by reducing PAKISTAN 56% end of 2017, a
ected by reclassification in Syria the number of spills and decreasing greenhouse gas NORWAY 36% (-36 MMboe) and negative revision in Kazakhstan emissions by flaring including participating in the 26% CROATIA OTHER (-37 MMboe). World Bank’s Zero Flaring Initiative. UK EXPLORATION HUNGARY DEVELOPMENT

2017 2018 2017 2018

1 Including JVs and Associates (Baitex: 6.2 mboepd, Pearl: 2.4 mboepd) 2 Excluding JVs and Associates (Baitex: 23.8 USD mn, UGL: 1.5 USD mn, Pearl: 0.2 USD mn)

4 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 5 III.

Photo: Ferdo Buva SCHEDULE OF EXPLORATION AND APPRAISAL WELLS IN 2018

COUNTRY BLOCK G&G/WELL NAME 2018 PLAN

Q1 Q2 Q3 Q4

Okány-East Sas-SouthWest-2

Bucsa Tiszi-1

Nagykőrös Alpár-3

Hungary Szeged-basin-West Forráskút South-2

Bázakerettye Budafa South-1

Okány-East Zsáka-South East-1

Bázakerettye Nagybakónak-Sávoly 3D

Drava-02 Severovci-1

Legrad mining plot Legrad-1 South Croatia Drava-02 Mala Jasenovača-1

Zebanec mining plot Selnica-1 East

TAL TAL 3D Seismic

TAL Tolanj East-1

Pakistan TAL Mamikhel Deep-1

TAL Mamikhel South

DG Khan DGK Seismic

PL790 Raudåsen Norway PL860 Oppdal / Driva (JU)

EX-1 EX-1 Romania EX-5 EX-5

n Well drilling n Well testing n Seismic

6 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 7 IV.

LICENCE INFORMATION

Licence information as of 31 January 2018

COUNTRY BLOCK/LICENCE 2P RESERVES 2017 PRODUCTION ACREAGE PHASE CONTRACT TYPE OPERATOR DILUTED SHARE* PARTNER(S) END OF 2017 (MMboe) (mboepd) (km²) (%) (%)

8495 E/D DoMa/C Hungary Several 91.7 42.8 Yes 100 – 3614 P DoMa 2894 E/D Onshore – several 135.9 27.5 DoME Yes 100 – 675 P Offshore – North Adriatic 1665 E/D/P 50 ENI (50) Croatia Offshore – Aiza Laura 22 E/D No 50 ENI (50) 9.4 7.7 PSA Offshore Adriatic – Izabela 345 E/D/P 30 EDISON (70) Offshore Adriatic – Marica 200 P Yes 63 ENI (37) E/A 10.526 OGDCL (31.58), PPL (31.58), POL (26.32) TAL 3030 Yes PPL (27.7632), OGDCL (27.7632), POL D/P 8.421 (21.0526), GHPL (15) Pakistan Margala 9.4 8.5 1387 E C Yes 70 POL (30) Ghauri 953 E No 30 MPCL (Op. 35), PPL (35) Karak 2359 E/A No 40 MPCL (Op. 60) DG Khan 1803 E No 30 POL (Op. 70) Cairn (21%), Serica (21%), Parkmead P218 – Scott 88 E/D/P No 46 (12.624%), Faroe (8.4%), Maersk (5.736%), Atlantic (3.24%) P2179 43 E/D Yes 51 AziNor (49%) P1430 – Catcher, Burgman, Varadero 76 D 20 Premier (50), Cairn (20), Dyas (10)

UK P1617 – Crathes 22.2 6.2 4 D C 50 Enquest (50) P1107 – Scolty 4 D 50 Enquest (50) P242, P902 – Broom 33 P No 29 Enquest (63), Ithaca (8) P226, P1298, P1615 – Rochelle 48 P 15 Nexen (41), Endeavour (44) P185, P218 – Scott,Telford 25 P 1.59 Nexen (80.41), Edison (15.65), Maersk (2.36) P1064 – Cladhan 30 P 33.5 Taqa Bratani Limited (Op, 64.5), Sterling (2) Russia Baitugan 47.2 6.2 105 D C Yes 51 TPAO (49) Aker BP (Op. 50), Wellesley (20), PL748, PL748B 208 No 10 Capricorn (20) Norway Northern North Sea Aker BP (Op. 30), Wellesley (25), PL790 128 No 20 Capricorn (25) Total (Op, 40), Petoro (30), Lotos (10), PL102F&G 26 No 10 Aker BP (10) Norway Aker BP (Op, 50), ConocoPlillips (30), PL626 – – 202 E C No 10 Fortis (10)

Norway South Viking Graben PL677 122 No 10 Aker BP (Op, 60), Fortis (30) PL812 115 No 20 Statoil (Op. 40), Origo (20), Fortis (20) PL814 54 No 30 Aker BP (Op. 40), OMV (30) PL820S 48 Yes 40 Wintershall (30), Fortis (30) PL872 53 No 20 Aker BP (Op. 40), Fortis (40)

8 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 9 IV.

LICENCE INFORMATION

Licence information as of 31 Jqanuary 2018

COUNTRY BLOCK/LICENCE 2P RESERVES 2017 PRODUCTION ACREAGE PHASE CONTRACT TYPE OPERATOR DILUTED SHARE* PARTNER(S) END OF 2017 (MMboe) (mboepd) (km²) (%) (%)

PL019C 31 No 20 Aker BP (Op, 80) PL539 123 Yes 80 Fortis (10), Lundin (10) PL617 112 Yes 70 Fortis (30) PL724, PL724B 255 No 30 Aker BP (Op, 40), DEA (30) Norway Norway Central Graben South PL771 – – 261 E C Yes 40 Fortis (30), DEA (30) PL808 159 Yes 80 Edison (20) Statoil (20), Petoro (20), Fortis (10), PL860 407 Yes 40 Lundin (10) PL861 330 No 20 Aker BP (Op. 50), Spirit (30) Shaikhan 11.9 3.7 280 D PSA No 20 Gulf Keystone Petroleum International (80), Op Kurdistan Region of Khor Mor 299 10 Crescent Petroleum Co International Ltd Iraq Pearl – 2.4 E/D HOA No (35) Operator, Dana Gas PJSC (35) Op., OMV Chemchemal 1174 10 Upstream Int GmbH (10), RWE Expl (10) Kazakhstan Fedorovsky 23.5 – 1291 E C No 27,5 KMG EP (50), FIOC (22.5) Oman Block 66 – – 4899 E PSC Yes 75 HCF (25) Ex–1 1115 No 30 Sandhill (70) Romania Ex–5 – – 1093 E CA No 20 Sandhill (80) Ex–6 1226 Yes 100 – Ras Qattara 247 25 IEOC (Op. 75) West Abu Gharadig 78 No 25 IEOC (Op. 45), Dana Petroleum (30) Egypt 2.7 1.5 D/P PSA North Bahariya 117 20 Sahara North Bahariya (Op. 50), IPR (30) East Yidma – Sidi Rahman &Rizk 25 Yes 100 – Block 3/05 225 Sonangol P&P (Op. 25), China Sonangol (25), Angola 1.9 0.8 P PSA No 4 AJOCO (20), ENI (12), Somoil (10), NIS (4), Block 3/05 A 91 INA (4) Syria** Hayan production region (6 licences) – – 674 P PSA Yes 100 –

* Diluted share is based on working interest. ** In line with EU/UN sanctions, INA temporarily suspended all its business activities in Syria until the “force majeure” circumstances cease to exist. DoMA: Decision of Mining Authority DoME: Decision of Ministry of Economy C: Concession PSA: Production Sharing Agreement CA: Concession Agreement HOA: Head of Agreement

10 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 11 V.

DETAILED WORK PROGRAMS IN 2017/2018

MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 V. 

HUNGARY

DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017 / 2018)

YEAR TYPE WORK PROGRAM

Exploration program continued, three exploration wells were drilled and tested. Kunágota-5 and Tóalmás North-2 wells were dry, the extended well test (EWT) is ongoing on Mezősas-SouthWest-2 well. Tóalmás-North-1 EWT was completed, and proved to be a commercial discovery. 3D seismic acquisition (300 km2) was completed on Okány-West and Szeghalom; Exploration data processing is in progress. In order to further increase exploration potential, MOL applied for three new hydrocarbon exploration licences in the 5th bid round, and successfully acquired all of them, in the areas of Őrség, Somogybükkösd, Somogyvámos. The licences are located in MOL’s core area in western Hungary. The committed work program includes drilling of two wells and 470 km² new 3D seismic acquisition. Tie-in of Komádi-West-4 well and drilling of one well in Mezősas-West field started, and 2017 will be completed in 2018. Development Implementation of Biharkeresztes, Somogy (Vízvár) and KAF -TVK gas projects has started with well interventions, tests and surface facility preparation.

MOL successfully continued its Production Optimization Program, with an annualized Production production uplift of 2.1 mboepd. Optimization In the frame of PO project 15 fracks, 49 well workovers (including ALS optimization and acid jobs) were completed. In the frame of the well cost optimization project ~ 20% cost reduction was delivered through the improvement in well design and activity rationalization. Hungary remains one of MOL’s core countries in terms of production and reserves. The extensive geological Efficiency Installation of the Algyő Power Plant was completed, which will bring substantial cost knowledge of the country and a well-developed existing surface infrastructure supports e‚cient operation. savings from 2018. The power plant utilizes MOL's own gas production for power The key objective of the work program is to mitigate natural decline through the ongoing Production generation. Optimization Program, putting undeveloped reserves into production and realizing the remaining exploration Exploration activity will accelerate with six new wells to be drilled and tested within potential via accelerated exploration and development activity. Okány-East, Bucsa, Nagykörös, Szeged-West and Bázakerettye. Well test on Okány East, Exploration Sas-SouthWest-2 will be completed. 3D Seismic acquisition at Nagybakónak-Sávoly will be carried out.

2018 will see accelerated activity with six development wells to be drilled in the 2017 YE 2P RESERVES 2017 PRODUCTION Development Szeged-Móraváros, Gomba and Mezősas-West fields. Somogy fields (Vízvár) and KAF-TVK inert gas projects will be completed. . MMboe . mboepd 2018

Production Production Optimization program will be carried on in 2018 with 30 workovers and Optimization 7 fracks, bringing additional incremental volumes. 2017 CAPITAL EXPENDITURE TOTAL: usd 122.9 mn

EXPLORATION DEVELOPMENT SUSTAIN & OTHER Algyő Power Plant will be in full operation bringing its full potential of energy optimization, Efficiency  . mn  . mn  . mn while well cost optimization will have a continuous effect on cost reduction.

14 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 15 V.

CROATIA

DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017 / 2018)

YEAR TYPE WORK PROGRAM

Exploration program started in the Drava-02 exploration area with some delay due to permitting issues. Severovci-1 drilling started at the end of 2017 and it is expected to Exploration be completed in early 2018. Preparation for Mala Jasenovača-1 well drilling has started, drilling is planned for 2018.

Kozarice-42 and Letičani-9 development wells were drilled; testing and interpretation are in progress on both wells. 2017 Development 3D development seismic survey on the fields of Bokšić–Klokočevci (154 km2) and Letičani–Šandrovac–Bilogora (200 km2) was completed, interpretation is in progress.

The Production Optimization (PO) continued in 2017, as 45 well workovers and 20 well stimulations were performed as part of Full Field Optimization (FFO), WWO and Well Production Stimulation campaigns which together resulted in a total of 1.1 mboepd additional

Optimization production on an annualized basis. Within the EOR project, CO2 and water injection continued throughout the year on the Ivanić and Žutica North fields. Linear Rod Pumps, a new artificial lift method, were implemented on 12 onshore oil wells.

Croatia is one of the core countries of MOL Group Exploration and Production. The country is facing challenges The exploration program will be extended in 2018, four exploration wells will be drilled, similar to Hungary: the natural depletion of mature fields. In order to exploit the remaining hydrocarbon Exploration Severovci-1, Legrad-1JR, Mala Jasenovača-1 and Selnica-1IS, and seismic survey will be potential, several programs have been applied, including Full Field Optimization (FFO) and EOR projects. performed within the Drava-02 exploration area. In  an exploration program started in the Drava  area, which will be extended in the coming years.

2017 YE 2P RESERVES 2017 PRODUCTION The PO program will continue in 2018, the FFO concept will be implemented on additional Production onshore fields with 90 well workovers and the EOR project will be maintained on the 2018 Optimization Ivanić and Žutica North oil fields. Well workover campaign will continue on both active  . MMboe . mboepd and idle production wells.

2017 CAPITAL EXPENDITURE TOTAL: usd 91.8 mn

Several efficiency projects will continue in 2018, including system optimization, leakage EXPLORATION DEVELOPMENT SUSTAIN & OTHER Efficiency prevention and reduction of flaring and energy consumption.  . mn  . mn  . mn

16 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 17 V.

PAKISTAN

DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017 / 2018)

TAL BLOCK (MOL 8.421% - DEVELOPMENT WI; 10.5% - EXPLORATION WI, OPERATED)

MOL Pakistan is the operator of the Tal Block Consortium. Since 1999, the consortium has made nine discoveries and MOL Pakistan has become one of the most successful operators in the country.

• In 2017 several tie-ins were completed, and as a result TAL Block average production exceeded 85 mboepd (gross). In 2017 tie-in of the Makori Deep-1 and Maramzai-4 wells were completed. Tolanj Processing Facility was established by relocating the Makori Early Production Facility and equipment. Tolanj West-1 and Tolanj X-1 wells were tied in to the new facility. • As for field development Makori East-6 development well and Mardankhel-2 & 3 appraisal wells were drilled in 2017, tie-in and construction of produced water pipeline are planned for 2018. In 2017 Mamikhel Well Head Compression construction works were completed, commissioning is planned for 2018. Construction of Central Front End Compression Facility on Makori East Field progressed, completion is planned for 2018. • In 2017 exploration program continued, drilling of the Tolanj East-1 and Mamikhel Deep wells started, completion and testing are planned for 2018. One new exploration well (Mamikhel South-1) will be drilled and 3D seismic acquisition on the western part of TAL Block is planned for 2018.

KARAK BLOCK (MOL GROUP 40% WI, NON-OPERATED)

MOL Pakistan farmed in to the Karak Block in 2008, by acquiring 40% working interest from Mari Petroleum Company Limited (MPCL). Since then three discoveries have been made.

• Kalabagh well was put into production through a rental Production Facility in 2017.

MARGALA BLOCK (MOL 70% WI, OPERATED)

MOL Pakistan acquired Margala Exploration Licence in 2006, with an area of 1386.73 km2 which is located in the Islamabad Capital Territory, Punjab and Khyber Pakthunkwa Provinces.

• In 2017 2D seismic data processing, interpretation and G&G evaluations were completed. The way forward MOL Group has interests in five blocks in Pakistan and operates the TAL Block, one of the largest hydrocarbon of licence management will be finalized including DoD decision on the upcoming exploration well. producing blocks in the country. After multiple discoveries and tie-ins, our operated production exceeded ~œ‘ mboepd in . D.G. KHAN BLOCK (MOL 30% WI, NON-OPERATED)

MOL Pakistan farmed in to D.G. Khan Block, by acquiring 30% working interest from Pakistan Oilfields Limited (POL) in 2015. Exploration licence extension was granted until 2020.

2017 YE 2P RESERVES 2017 PRODUCTION • 2D seismic data acquisition was started, and will be followed by processing and interpretation. . MMboe . mboepd

2017 CAPITAL EXPENDITURE TOTAL: usd 12.3 mn

EXPLORATION DEVELOPMENT SUSTAIN & OTHER  . mn  . mn  . mn

18 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 19 V. V. 

UNITED KINGDOM RUSSIA

MOL Group entered the UK in 2014, after acquiring MOL Group entered into a strategic partnership with a portfolio of assets in exploration, development TPAO by divesting žŸ¡ of shares in BaiTex in ž, and production phases. The major achievement in while MOL Group remained the operator. Baitugan is 2017 was the delivery of the FPSO on the Catcher a compact field with developed infrastructure, which field and reaching the first oil in December 2017. supports low ener” and operational costs. The main The key focus of the work program is to ramp up target of the work program is to enhance production production on Catcher in 2018. level with development drillings, workovers, and infrastructure development project. DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017 / 2018) DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017 / 2018) CATCHER (MOL 20% WI, NON-OPERATED) BAITUGAN (MOL 51% WI, OPERATED) • In 2017 Phase I drilling programme was successfully delivered and drilling started on • In the frame of High Density Drilling Program Phase II. FPSO construction was completed, the 53 wells were drilled in 2017 within the planned vessel was transferred to the location, where schedule and budget, and as a result production the installation and hook-up was finalized. First increased by 8%. In 2018 21 wells will be drilled. oil was achieved in December 2017. The FPSO • In 2017 the well-workover campaign continued with was delivered with outstanding HSE results. 94 workovers (including commingling, optimization, In 2018 Phase II development program will be big scale acid jobs and regular acid treatments) and completed by drilling 4 wells and production one frack job. In 2018 the program will continue will be gradually ramped up. with 50 workovers and two fracks. • In 2017 the infrastructure development program SCOLTY-CRATHES (MOL 50% WI, continued, including pipeline integrity project NON-OPERATED) (reconstruction of existing pipelines and flow separation), telemetry program, new oil and • Production of Scolty and Crathes was significantly water pipeline, powerline and road construction. below expectations in 2017 due to wax build up The program aims to reduce the number of pipe in the pipeline system, which was treated with leakages and the inherent environmental impact, chemical solvents as an interim solution. Focus of strives to prevent the scaling and corrosion the 2018 work program is to define the permanent problems and pursues to utilize formation water. solution for the waxing issue. The project will continue in 2018. • The full-scale geological model building SCOTT-TELFORD AND ROCHELLE AREA (SCOTT (MOL 46% WI, NON-OPERATED), TELFORD (MOL 1.6% WI, was maintained in 2017. The Geological and NON-OPERATED) AND ROCHELLE (MOL 15% WI, NON-OPERATED) Hydrodynamic Model and the updated Field Development Plan will be completed in 2018. • On Scott the infill drilling program continued with two wells (J41z and J42). The drilling of the third well started in • The Yerilkinsky Exploration licenses were 2017 and will be completed in 2018. The focus of the work program will be on OPEX reduction and maximizing the relinquished in Q1 2017 due to the lack of perspective. value of the asset.

2017 YE 2P RESERVES 2017 PRODUCTION 2017 YE 2P RESERVES 2017 PRODUCTION . MMboe . mboepd . MMboe . mboepd

2017 CAPITAL EXPENDITURE TOTAL: usd 95.8 mn 2017 CAPITAL EXPENDITURE TOTAL: usd 23.8 mn

EXPLORATION DEVELOPMENT SUSTAIN & OTHER EXPLORATION DEVELOPMENT SUSTAIN & OTHER  . mn  . mn  . mn –  . mn  . mn

Including JVs and Associates

20 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 21 V. V. 

NORWAY KURDISTAN

MOL Group entered Norway in ‘, after acquiring Ithaca Petroleum Norge. MOL Norge’s licence portfolio is MOL Group entered Kurdistan Region of Iraq in , where currently Kalegran (MOL’s ¡ subsidiary) is a located in three strategic core areas in the North Sea and comprises of  licences of which six are operated. In  minority partner in Shaikan PSC. MOL Norge further matured its exploration portfolio and successfully participated in the APA licencing round adding three licences (two operated). MOL Norge is preparing for its first operated o¤shore drilling in œ. DETAILED WORK PROGRAMS OF MAJOR PROJECTS DETAILED WORK PROGRAMS (2017/ 2018) OF MAJOR PROJECTS (2016 / 2017) SHAIKAN (MOL 20% WI, NON-OPERATED)

• E
ective February 2017, MOL Norge was • In 2017 Shaikan recorded stable production. awarded operatorship of one licence and • The Shaikan JV continues its discussions partnership in three other North Sea with the KRG's Ministry of Natural licences in the 2016 APA. Resources ("MNR") on the 2018 Work • MOL Norge submitted four applications for Program. new licences in the 2017 APA (Norwegian Awards in Predefined Areas) licencing PEARL (MOL 10% WI, NON-OPERATED) round, and has been o
ered operatorship for two licences and partnership in one MOL acquired ¡ in Pearl Petroleum licence. Company in Ÿ from Crescent Petroleum • MOL Group built partnership with strong, and Dana Gas. Pearl holds all legal rights in best in class North Sea companies (Petoro, exploring and developing the Khormor and Statoil, Aker BP, OMV, and Lundin) and Chemchemal fields in the Kurdistan Region expanded its operated positions in the of Iraq. Mandal High Area. • In 2017 the Hyrokkin (PL 677) well was • Throughout 2017 Pearl recorded stable production. drilled and completed within planned • In 2017 the Operator agreed to settle with the Kurdistan Government, terminating the arbitration and related court schedule and significantly below budget proceedings. but the well proved to be dry. Preparation • After the settlement, Pearl committed to an increase of gas production by 500 MMscf/day, a 160% increase on the for Raudasen (PL790) well was completed current level of production. The post-settlement field development plan is being finalized with the partners. in 2017, the well will be spudded in Q1 2018. The first MOL operated drilling in Oppdal/ Driva (PL 860) is planned for 2018.

2017 YE 2P RESERVES 2017 PRODUCTION 2017 YE 2P RESERVES 2017 PRODUCTION – – . MMboe . mboepd

2017 CAPITAL EXPENDITURE TOTAL: usd 16.3 mn 2017 CAPITAL EXPENDITURE TOTAL: usd 1.7 mn

EXPLORATION DEVELOPMENT SUSTAIN & OTHER EXPLORATION DEVELOPMENT SUSTAIN & OTHER  . mn –  . mn –  . mn –

Pre-tax figures Including JVs and Associates

22 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 23 V. V. 

KAZAKHSTAN OTHER COUNTRIES

OMAN MOL Group entered Oman in 2006, and currently has a 75% interest in Block 66. It was acquired in 2013 and is located in the Mid-Western part of the country close to the Saudi border. In 2017 geological work continued in the Block, and the company decided to enter the second phase of exploration with involving a partner. The commitment includes one exploration drilling within two years. The 2018 work program includes G&G works in order to identify the drillable prospects.

ROMANIA In Romania, MOL Group’s focus is on exploration of conventional hydrocarbon potential and currently has interest in three licences, 30% in EX-1 and 20% in EX-5 in partnership with Sand Hill PR, and 100% in EX-6 as operator. In 2017 preparation for seismic works started on EX-1 and magnetic survey was completed on EX-5. In 2018 3D seismic acquisition, processing and interpretation are planned on EX-1, and the first exploration drilling will be started on EX-5. Geological assessment will be carried out in EX-6.

EGYPT INA is involved in exploration and production activities in Egypt since 1989. Currently INA holds interest in East Yidma concession as operator and on 3 concessions in the Western Desert of Egypt (Ras Qattara, West Abu Gharadig and North Bahariya) as a non-operator with several partners. In 2017 four wells were drilled. The work program for 2018 includes drilling of eight wells on North Bahariya and nine wells on Ras Qattara concessions.

ANGOLA INA entered Angola in 1981. Currently INA has 4% interest in two blocks as non-operator with several partners. (3/05 and 3/05A). The 2017 work program included facilities maintenance and well workovers across the 3/05 Block. In 2018 preparatory works will be carried on for upcoming 2019-2020 drilling campaign. MOL Group is in partnership with KMG EP and FIOC in its Kazakh operation in the Fedorovsky Block. SYRIA INA announced “force majeure” in February 2012, in line with DETAILED WORK PROGRAMS OF MAJOR PROJECTS (2017/ 2018) EU/UN sanctions, and temporarily suspended all its business activities in Syria until the “force majeure” circumstances FEDOROVSKY BLOCK (MOL 27.5% WI, • Licence extension was requested for Fedorovsky cease to exist. The reserves in Syria were re-classified into NON-OPERATED) exploration program. contingent resources, due to the current situation. • Reserve reconciliation was made on Rozhkovskaya • U-25 well core analysis was progressed. Field. Based on the latest well drilling and • In the frame of Trial Production Project (TPP) updated 3D static and dynamic geological model Geological Static and Dynamic model building was the rock volume, reservoir porosity and recovery completed. In 2018 the surface facility conceptual factors were recalculated, which caused 2P study will be prepared and the basic engineering reserves reconciliation from 60.4 MMBoe design will be worked out. to 23.5 MMBoe. Photo: Ferdo Buva

2017 YE 2P RESERVES 2017 PRODUCTION . MMboe –

2017 CAPITAL EXPENDITURE TOTAL: usd 1.7 mn

EXPLORATION DEVELOPMENT SUSTAIN & OTHER  . mn  . mn –

Including JVs and Associates

24 VI.

GLOSSARY

ABBREVIATIONS PARTNERS (ABBREVIATIONS) ALS: Artificial Lifting System AJOCO Angola Japan Oil Company Boe (barrel of crude oil equivalent): Volume equivalent obtained after conversion of the heating value DEA Deutsche Erdoel AG of gas to crude oil on the basis of its thermal quantity. FIOC First International Oil Corporation In its practical application, 1 boe is, in general, 6000 cubic feet GHPL Government Holding Private Limited (about 170 normal m3) of gas. GKPI Gulf Keystone Petroleum International Boepd: Barrel of oil equivalent per day IEOC International Egyptian Oil Company CAPEX: Capital Expenditures IPR Improved Petroleum Recovery Dry well: An investigated borehole which does not confirm the existence of a hydrocarbon site or is not able to profitably produce crude oil or KMG EP KazMunaiGas Exploration Production natural gas. MPCL Mari Petroleum Company Limited EOR: Enhanced Oil Recovery. The third stage of hydrocarbon production NIS Naftna Industrija Srbije during which sophis ticated techniques that alter the original OGDCL Oil and Gas Development Company properties of the oil are used. Its purpose is not only to restore POL Pakistan Oilfields Limited formation pressure, but also to improve oil displacement or fluid PPL Pakistan Petroleum Limited flow in the reservoir. TPAO Türkiye Petrolleri Anonim Ortaklı�ı Field development: Process of implementing surface and sub-surface facilities necessary for the recovery of hydrocarbon reserves. FPSO: Floating Production, Storage and Offloading mboepd: Thousand barrel of crude oil equivalent per day Probable reserves: Those additional reserves which analysis of geosciences’ and engineering data indicate are less likely to be recovered than Proved reserves but more certain to be recovered than Possible Reserves. Proved reserves: Those quantities of petroleum, which by analysis of geosciences’ and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations. 2P: The sum of proved reserves plus probable reserves Production Sharing Agreement (PSA): Agreement for Sharing the Production of an oil field or a gas field between the State and the Investors, having the production license for the field. Unrisked resources: Resources without taking into consideration the exploration risk (probability of success) Photo: Zoltán Kovács, Senior Drilling Engineer, MOL GROUP E&P Well Operations Supervising

26 MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018 27 EXPLORATION & PRODUCTION

UPDATE 2018

MOL GROUP EXPLORATION & PRODUCTION UPDATE – 2018