MOL and Turkiye Petrolleri form a joint venture to explore two oilfields in Hungary

Hungarian Oil Company MOL and Turkey’s Turkiye Petrolleri will explore two new oilfields in Hungary, as part of a newly-established joint venture.

Szijjarto, after meeting with Turkish Energy Minister Alparslan bayraktar, said that efficient production on new fields could help Hungary cover some of its consumption needs.

Hungary imports the majority of its crude oil via the Druzhba Pipeline, which brings Russian Oil through Belarus, Ukraine and Hungary to Slovakia. Szijjarto said Druzhba would remain Hungary's main crude oil import route.

Hungary, unlike many other European Union nations, is committed to maintaining close business and political ties with Russia, as well as relying on Russian energy.

Szijjarto stated that the new Hungarian and Turkish joint venture will explore two fields near the towns Tamasi Buzsak in Hungary and produce oil.

The domestic production of oil only covers a small fraction of the total consumption in Hungary. MOL's site says that the company will produce about 600,000 tonnes of oil in Hungary in 2024, which is about half of its total domestic production. It imports approximately 6 million metric tones of crude oil a year.

Szijjarto, at a press conference with Bayraktar said that "Turkish Companies have never invested before in the Hungarian Energy System", adding that TPAO would invest 6 billion forints (16.87 million dollars) in the project.

Szijjarto stated that MOL and TPAO had been operating a joint gas field in Russia since 10 years. They also work together in Azerbaijan, and will now begin exploring plans to produce oil in third-country countries.

Bayraktar stated that this is TPAO’s first investment in Europe.

"We must continue to strengthen our cooperation in order to achieve energy security." We are developing policies to address these problems as countries that depend on imported and foreign energy.

(source: Reuters)