MOL PLC and OAO NK YUKOS, the largest fully privatised company in Russia, signed an agreement in Budapest on 12 February 2002 providing for the joint development and production of the Zapadno-Malobalyk field in Russia. In accordance with the agreement, the project will be implemented by a joint venture company owned 50:50 by MOL and YUKOS, and incorporated in Russia. The JV will be directed and supervised by a Board of Directors, while the JV executives and staff will be appointed by the partners jointly in accordance with an agreed sharing of responsibilities. A consideration of USD 100 million will be paid by MOL to YUKOS on the effective date with respect to the transaction. The field, with estimated proven recoverable reserves of a minimum of 20 million tonnes (145 million bbl) of crude oil and further probable reserves, is located in W. Siberia within the territory of the Khanty-Mansiysk Autonomous Region.
